Overcoming Objections – GAP
By: Adam Yoder
“I get GAP insurance through my insurance company for half the price of yours.”
Have you ever had a customer say this to you? Most likely you have, and your initial feeling was probably frustration because you know the insurance companies GAP is not as good as your GAP! You get what you pay for and there are several reasons the customer should go with your GAP.
This is another instance where the customer needs someone to slow them down and consult with them to educate them on the differences between the two GAP products. Here are four things you can convey to your customer to help educate them on product differences:
- If you have GAP through your insurance company and you shop your insurance bundle i.e. Home, Auto, Life, etc. and you find a better deal and make the switch, you will lose your GAP coverage immediately and are not able to purchase it after the sale.
- If you have GAP through your insurance company and you have a car accident and your car is totaled, you will have a double claim. One claim for the accident, and a second claim for the GAP insurance, which typically results in your monthly premium going up.
- Most GAP policies through insurance companies only pay out 115% loan to value, compared to 150% loan to value with our GAP. The last thing any customer needs to experience is going the trauma of a total loss, thinking the GAP from their insurance company will allow them to walk away from the car and loan free and clear, only to find out the GAP didn’t completely satisfy the loan. However, at 150% with our GAP, the loan will be satisfied.
- Most GAP policies through insurance companies will not cover any negative equity from a prior loan that is rolled into the new loan. This defeats the purpose of GAP insurance!
Educate your customer by reviewing these four points. Chances are the customer did not have this information and had not thought about any of these concerns. After reviewing these points, continue as follows:
“Most of our customers take our GAP to avoid everything we just talked about, even though it costs more than GAP through their insurance company. But here is what we can do for you: come back to the dealership when your about halfway through your loan, and we will do an appraisal on your car to determine the value at that time. GAP is needed most when you are exposed to negative equity, and typically once you are halfway through your loan your car is worth what you owe the bank, and you no longer need GAP. If that’s the case, we will cancel your GAP and you will get a refund for the portion (half) you didn’t use, which means you will have paid what you would have for your insurance company GAP but you get the better product and can avoid those four concerns.”
Do we want the customer to cancel GAP and create a chargeback? Not really. However, we do want the customer to have the better product to protect them. Our goal is first and foremost to do all we can to ensure our customers are happy and taken care of. One way or the other, this philosophy will result in future sales and loyal customers: And that’s what its all about!
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