Here’s the script for the “Finance Manager Sales Pitch” video above:
You’ve signed a majority of the paperwork to this point, only leaving a few more pieces.
The ones that actually buy the car aren’t ready to go yet because the business manager has yet to deliver the sales pitch…or sales presentation.
You haven’t signed the final papers yet because F&I doesn’t have all of the numbers yet. The numbers will be finalized when they know if they get to charge for any back-end products. We’ll spend more time on those products in the next lesson, so here it’s more important to learn about the approach.
Everything you’ve done, said, or signed to this point in the business office has been a process carefully orchestrated and developed by professional sales teams over the course of a hundred plus years to get you to this point where you are now receptive to offers for intangible products. After all, selling you something that you can see, smell, touch, taste, or feel can be relatively easy, as long as you want it and can afford it—putting you in place to buy something that you can only imagine, though requires painting a picture in your mind and informing you about situations that may or may never happen.
The typical presentation will have varying levels of products available, and they will almost always be presented not at their actual cost, but as an addition to your monthly payments. You will likely be shown a personalized offer on the desk displaying different tiers of product in something like a Basic, Value, or Preferred package or a Bronze, Gold, Diamond-type of setup where everything they have available is in Diamond providing the most comprehensive coverages, and then you’ll give up some things, and your payment will go down as you move down towards crappy old basic Bronze which nobody wants anyway.
Just continuing the example, the business manager may present the top level at not at $69 a month, and definitely not at a $5,000 increase in your financing. It will be more subtle, like saying if you agreed to $525 a month on the front-end, they’ll say something like you can have the truck and everything here for only $594 per month.
During this sales pitch, everything you told them before will be subject to their using it as a reason for you to buy.
- You’ve been hurt at work before, here’s why you need accident protection.
- You came out of pocket four grand on a new transmission for your trade, here’s why you need an extended warranty.
- You’re buying a car for your kid, well here’s why they need a service plan, so they don’t have to pay.
- You think your new car is beautiful, well, so do criminals, here’s why you need theft recovery.
And on and on…
If your tier is good, then you’ll be offered the whole boat at full markup, and F&I gets to set the price. They have a buy rate and sell rate here too, just like they did for financing. The only difference here is that some states will set a maximum markup on financing, but not a max markup on the back-end. Like they may be able to sell you a specific coverage for say $600 but charge you like $2,000 if they think you’ll pay. The packages will be presented at a firm price, but rest assured here that everything is negotiable.
Oh, you want to say “No” to everything! That’s fine, because they may have you fill out another random form, so you feel they’ve forgotten about it to relieve the sales pressure on you…for a minute. But trust me, they’ll get back at it again, potentially more aggressively. Most sales professions are taught to make you say no at least three times before they move on.
If you do want something, that’s great. Just tell them you want a particular thing or package, but they’re asking too much for it. Some products and coverages actually do add a significant amount of value to your ownership, and I buy some of them myself on every vehicle purchase. If you want to be aggressive on price, tell them the coverages you want but that you will only pay them a hundred dollars over the buy rate, and they have to show you what their cost is for you to accept it.
Here’s why that may work for you. An F&I manager will not only get a direct commission on any back-end products they sell, but they will also get a bonus based on what’s called penetration. The more products that they are able to penetrate into orders for a given month, they’ll receive even more money. Let them know that they can have the penetration bonus, but they won’t make a killing on you just from adding the additional coverages.
Tell them they can either do it that way, or you won’t buy anything at all from them except the car. Now you’ve got their attention. They know that you are in the driver’s seat on the negotiation, and they can either have a little of something, or all of nothing. Besides, you can always add anything they offer during your purchase at another time. It’s just far more convenient to do it now during the sales pitch, and honestly, if you walk away with nothing extra here, the likelihood of your ever adding it in the future is basically non-existent.
Make your intentions clear during this sales pitch, but again, don’t take any of it personally. Now let’s move on to learning about some of the products they have to offer.