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0 $8,000 flipped and won’t buy Gap

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  • by Strategic Diversified
  • 05.06.2020
 
$8,000 flipped and won’t buy Gap
 by: Jeremiah Shelton
 
 
I have worked with thousands of F&I Managers and Sales professionals in my career. I have flown all over the country to provide training to my clients and I am constantly looking for new material to share. One common complaint that I see with F&I managers is the shock they face, when they have a customer who will not purchase Gap when they are rolling a negative balance and not putting any money down on their new vehicle.
 
I see F&I Managers complaining and begging their customers to take Gap because the F&I Manager understands how important the product is. I have even seen some Managers get so upset that their customer did not purchase Gap, that they actually wish for the customer to total their vehicle so the customer can learn his/her lesson. Are our ego’s so big that we blame the customer for not purchasing what we pitched them???
 
STOP BLAMING YOUR CUSTOMER AND LOOK IN THE MIRROR!!!
 
It is not the customers fault for not understanding our business. It is the F&I Manager’s job to properly explain why each program is needed. If a customer does not purchase a product from you…. You didn’t explain it correctly. Let’s take a look at your presentation.
 
Are you using your menu as a presentation or a math tool. If you are using the menu to present all of your programs without any explanation of what you are doing, you are making a huge mistake. Half of your customers are not listening to your presentation and the other half is confused because they are not in the car business. You need to slow down to speed up. The best producers have a conversation with their customers explaining some of the exposures the customer can have prior to going into the menu. Take time to explain to your customers what could happen before you start selling products. When your customers understand what could happen, they will buy your programs.
Now look at Gap.
 
Most trainers teach F&I Managers to ask their customer, “Do you know what gap insurance is”. This is the worst question you can ask as an F&I manager because most customers will lie and say yes because they don’t want to look like they don’t understand something. After the customer replies “yes” the F&I manager will say something like this…. Gap insurance will cover the difference between what the insurance company gives you and what you owe the bank so you can come back and buy another vehicle. To the F&I manager this makes complete sense because that is what the product does.
 
The problem is that your customer thinks that you are trying to sell them auto insurance and the customers objection is, “I have insurance”. At this point you have completely lost your customer and you are at the point of no return when you try to explain it to them. They aren’t buying Gap because YOU EXPLAINED IT WRONG!!
 
Change your stance and reverse the way that you explain it. Instead of asking “do you know what Gap is” change it to “Do you know how a total loss is handled with insurance companies”. You can explain how the insurance industry works when you have a total loss. You can explain that if their vehicle gets totaled whether it’s the customers fault or not, the insurance company will have an adjuster appraise their vehicle and figure out if they are going to fix the vehicle or total it. If the adjuster decides to total the vehicle and value it at $20,000.00 but the customer owes $30,000.00 to the bank, that’s the problem.
 
Once your customer understands this, they will purchase Gap. Its all in the way you present your ideas. Next time your customer doesn’t purchase gap when they roll in $8,000.00 of negative equity, don’t blame the customer and look at yourself. You and your customer DESERVE to have the best presentation.
 
 
 
 
 
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