On quoting payments...

Your customer should have agreed to a payment before they go to F&I.


Because F&I is in business to make a profit, sell products and deliver cars.

The old school says that F&I should close on the payment. That was true back in the days of “reverse disclosure”.

Reverse disclosure involved a three step process;

1. F&I quoted the “loaded” payment in the “box”

2. F&I started signing paper to pass time and let the customer “come down from the ceiling”.

3. F&I began having the customer sign the product contracts with a statement like “If you car breaks down, you’ll be glad to know that you will only have a small deductible.” and then on to the next form.

The Car Guy, has confidence in the fact that he has sold the car. He knows that the customer isn’t going to blowout. He worked with his desk manager and landed the customer on the right car, the first time. The Car Guy Desk...

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Are you training or un-training?


All front end managers pay attention here…

Every time that you speak  to a salesperson about a deal you are either training them or untraining them.

In these hard times in the business, above all else you must be consistent when working with your salespeople.

Make sure everyone is following the road to the sale.

Except nothing less.

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On down time at the sales desk...


F&I Managers should spend their downtime at the sales desk helping work car deals.

A few reasons:

  1. F&I can structure deals and help deliver more cars
  2. F&I can facilitate a spot delivery and create a sense of urgency with the customer
  3. F&I can increase the total deal yield for the house

Any tenured F&I Manager understands, why they should use an interview/menu presentation with every customer.

Legalities aside, by offering 100% of the products to 100% of the customers 100% of the time,
the F&I Manager is playing a numbers game. It’s called the 300% rule and the good F&I Manager wants to increase his odds of closing the sale EVERY time he presents products.

If a “Car Guy” looks at his customers types through the bell curve, he can see that 10% are lay-downs, 80% need to be sold and 10% will buy nothing, no matter how compelling the offer.

Here’s the bottom line: By offering all of the products to everyone, the...

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How to add $100 to your F&I PVR...

To add $100 to your Finance Department’s PVR
do the following on a consistent basis.

1. Be Efficient
2. Spend Down Time At The Sales Desk
3. Train Your Sales Force
4. Reconcile Charge Backs
5. 100% Interview/Menu
6. Daily Save-A-Deal
7. Train – Invest In Yourself
8. Second Face T.O.
9. Use Closes And Visuals
10. Attitude Is Everything
Be Efficient
o Be organized
o Touch deal paperwork once
o Have a solid deal flow
o Have a deal check list for F&I and Sales

The #1 F&I time waster is correcting problems.
Use your time generating profit!
Spend Downtime At The Sales Desk
o Be proactive
o Get involved early and often
o Bring added value

Be a part of the solution. Help structure the deals!
Train Your Sales Force
o Train on using worksheets with customers
o Train on ranging payments
o Train on cash down
o Train on setting  T.O. expectations
o Train on handling F&I questions
o Train on using the delivery board, checklists, etc.

You get the idea train them on all facets of the deal!


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On working cash down...

Are you setting your customers up to put more cash down?

Sales people were once required to solicit additional cash down from their customers on every deal.

The standard set up went something like this: “Most of my customer usually put 20-30% down. In your case that would be $5-6000. Maybe you would be comfortable with more?” Just plant the seed and shut up.

An old maxim said that the down that you collected often equaled the comissionable gross. I’ll bet it’s still true.

However you phrase it, getting additional down stroke does nothing but improve the deal. It puts the customer in an equity position sooner and makes it easier to get the paper hung.

If you have gotten out of the habit of working cash down, get back in the habit today, on your next deal!

Read, apply and make more coin, now!

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Why weak sales managers don't push leasing...

What are the potential benefits to a customer of leasing a vehicle?

1. Shorter term
2. Less money out of pocket
3. Smaller monthly payment
4. Guaranteed future value of the vehicle

The dealership also benefits from a shortened customer trade cycle, a clean used vehicle source, a steady stream of repeat customers with a properly managed portfolio and higher new car grosses per unit.

It can be a win/win for the dealership and the customer.

Yet daily, I see the weak sales managers of the world resort to what I now call “Defensive Leasing”.

Defensive leasing begins with the (weaker than a tea bag in the ocean) sales person not following the road to the sale. He buys into the customer’s story about having driven 10 of them all over the city. The weak sales person then cuts all of the corners on the road to the sale. Thinking that he is the chosen one, who will now close them on payment, Mr. Nestea, sales person approaches Mr. Earl Grey, the sales manager, at...

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On extracting an offer...

Generally, the house should always roll the first set of numbers to a customer.

Unless you are this non-car guy, you don’t need to get an offer, just a deposit.

Once a sales person has presented the house’s 1st pencil and the customer says
no, it’s up to the salesperson to extract an offer. This is one of the more critical moments
of the sale because it frames the customer’s position for the rest of the negotiations.

Extracting the offer correctly the Car Guy separates himself from the average herd of salespeople by demonstrating control of the customer.

The process for extracting the offer is as follows;

1. Get the offer
2. Get the logic
3. Get the “glue”

Of all the steps, one would think, getting the actual figure that the customer will agree to do business is a “no brainer”. However, there are a lot of sales managers reading this that are shaking their heads in agreement with me about how often this step gets...

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The little boy and the snake...

One cold and windy winter morning a little boy was playing in the woods. Walking down a path, he came upon a snake. It was stretched across the trail and frozen solid like a broom stick. The boy picked up the snake and ran with it all the way home.

Once home, the boy warmed the snake by the fire. He fed it. He watered it. Slowly, over a few days, the snake regained it’s health. As soon as the snake was 100%, it coiled up and struck out, biting the little boy. As the boy lay dying, he managed to gasp a final question to the snake. “Snake I found you dying, I loved you, fed you and this is how you repay me?!” The snake coldly replied “When you picked me up you knew I was a snake.”

The moral of the story: Be careful with when dealing with people that you know to be problematic. Never let your ego get in the way. People will not change their root behaviors simply because they are dealing with you.

Read, apply and make more coin, now!

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3 Perfromance heroes say this...

A trio of sports legends.

What can these three gents teach you about selling more cars or holding additional gross?

Jack Nicklaus has said that he never has had the prettiest golf swing. Jack has expressed that he did one thing better than all others. He managed himself around the course . He managed his emotions. He walked the course before the tournament and knew all of the distances to the pin from various positions that he anticipated being in. He mentally rehearsed each round before he played it. He knew when he had to crush a drive and he accepted when he needed to lay up, without letting his ego get in the way.

Michael Jordan said he could except himself failing, he simply could not except himself not trying. Period.

Sugar Ray Leonard is a soft spoke warrior of incredible ferocity in the ring.  He said that no matter what you were trying to accomplish, you had to do the road work before you stepped in the ring. In boxing that means...

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4 Conversations that will make our break your deal...

There are four conversations that must take place during the road to the sale to maximize profit on a car deal.

1. The sales person qualifies the customer at the meet/greet.

2. The sales manager interviews the sales person at the first pencil.

3. The F&I manager interviews the sales manager when the deal is turned over.

4. The F&I manager interviews the customer before delivery.

The sales person qualifies the customer.

The sales person must determine the who, what, why, when, where and how the customer wants to buy a car. He must uncover the customer’s “hot buttons”.

The sales manager interviews the sales person.

The sales manager must determine that the sales person has successfully uncovered the customer’s “hot buttons”. The sales manager must confirm that the sales person has successfully completed the road to the sale. The sales manager must extract the customer’s “hot buttons” from the sales person.


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