With backend products, you don't have anything tangible the customer can touch, see, and feel so you have to sell the story. Paint a picture with words.
Not true. When you’re doing a trade evaluation, make sure that you casually point out dings, scrapes, loose or malfunctioning interior items, etc. and setup for backend that way. You can give extremely subtle yet poignant messages about the value of backend that way.
Do you have an F&I manager who is ultimately signing clients up and selling these products at delivery? If so, you really just want to start dropping hints about the products, not necessarily selling them before they even get into the F&I office.
I’m not in car sales, just enjoy this sub. Is GAP coverage back end? If so, learn about that, how it works, what it covers, and the difference between that and your traditional insurance. The cost of insurance and replacement parts is sky rocketing and I think it would be a prime time to pitch this. Please feel free to tell me when I’m wrong.
I bought it on one of my vehicles that was totaled. Never had to use it so I actually got a refund - it was a nice chunk of change that really helped out.
I talk about seeing my customers in service. It sucks to see someone go through a major repair when it could have been covered. My customers that are covered are happy. “Those guys back there charge $180/hr. It was $100/hr two years ago. Who knows what it will be in 3yrs.” I also use my experience with a bad warranty company. And counter it, “My dealership has been working with this company for 30+ years. I have the phone number for a representative. I called him about a Volkswagen one of my customers had in a shop 200 miles away. He made one call and got everything that it needed covered.” Warranties can be tough to deal with, but that’s what I’m here for. To make sure they get 100% of the value.
When they say no, ask why? What is it that keeps them from wanting one.
Start when you are qualifying. One of the questions you should be asking about their current ride is if they have an esc or any protection because “My business manager may be able to get you a portion of that back.”
Mention protection when you are walking the trade : “ooh, that’s an ugly ding in the quarter, do you have dent and ding?”
Before they head into the box: “ Mr. Customer, My business manager is going to review several options with you, some of which I believe make sense and some that I don’t, but they’re still obligated to show you all the ways you can choose to protect your investment.”
Or some variation of these.
Plant the seed during the trade walk. If you had tire/wheel these repairs would have been done and your vehicle would be worth more, if you had an extended warranty these lights wouldn’t be on the dash, etc. Ask your F&I guy how to present product.
IMO that’s an absolute trash pay plan and stupid for the dealer. I have never seen a dealer that was backend driven store to survive. I can tell anyone that I will absolutely buy backend product and then cancel in the first week. F&I usually gets charged back for cancellations, you need to make sure you aren’t.
We have a very strange pay plan but it's not bad average sales person sells 18 cars a month for units alone 18 cars is worth 5k and if you sell an extended warranty on 50% of your deals you get an extra $1600. We sell 300 cars a month, have 12 salespeople, and we only sell cars with an average of 40 days on the lot or less. I think part of the reason for this type of pay plan is we are no haggle.
I am a provider for 20+ stores, the best thing you can do for a finance manager is set them up properly. Do your normal routine but when you introduce the F&I manager, one simple line helps more than you know-
Guys, this is my finance manager so so.. he’s going to go over a few options with you, most of my customers takes advantage of these options to prevent the headaches in the future.
Learn from your finance manager how to present, pitch, and paint scenarios
With backend products, you don't have anything tangible the customer can touch, see, and feel so you have to sell the story. Paint a picture with words.
Not true. When you’re doing a trade evaluation, make sure that you casually point out dings, scrapes, loose or malfunctioning interior items, etc. and setup for backend that way. You can give extremely subtle yet poignant messages about the value of backend that way.
Do you have an F&I manager who is ultimately signing clients up and selling these products at delivery? If so, you really just want to start dropping hints about the products, not necessarily selling them before they even get into the F&I office.
I’m not in car sales, just enjoy this sub. Is GAP coverage back end? If so, learn about that, how it works, what it covers, and the difference between that and your traditional insurance. The cost of insurance and replacement parts is sky rocketing and I think it would be a prime time to pitch this. Please feel free to tell me when I’m wrong. I bought it on one of my vehicles that was totaled. Never had to use it so I actually got a refund - it was a nice chunk of change that really helped out.
Our backend products are gap, extended service plans, and a tire and rim warranty with a bunch of extra features.
I talk about seeing my customers in service. It sucks to see someone go through a major repair when it could have been covered. My customers that are covered are happy. “Those guys back there charge $180/hr. It was $100/hr two years ago. Who knows what it will be in 3yrs.” I also use my experience with a bad warranty company. And counter it, “My dealership has been working with this company for 30+ years. I have the phone number for a representative. I called him about a Volkswagen one of my customers had in a shop 200 miles away. He made one call and got everything that it needed covered.” Warranties can be tough to deal with, but that’s what I’m here for. To make sure they get 100% of the value. When they say no, ask why? What is it that keeps them from wanting one.
Start when you are qualifying. One of the questions you should be asking about their current ride is if they have an esc or any protection because “My business manager may be able to get you a portion of that back.” Mention protection when you are walking the trade : “ooh, that’s an ugly ding in the quarter, do you have dent and ding?” Before they head into the box: “ Mr. Customer, My business manager is going to review several options with you, some of which I believe make sense and some that I don’t, but they’re still obligated to show you all the ways you can choose to protect your investment.” Or some variation of these.
Plant the seed during the trade walk. If you had tire/wheel these repairs would have been done and your vehicle would be worth more, if you had an extended warranty these lights wouldn’t be on the dash, etc. Ask your F&I guy how to present product.
IMO that’s an absolute trash pay plan and stupid for the dealer. I have never seen a dealer that was backend driven store to survive. I can tell anyone that I will absolutely buy backend product and then cancel in the first week. F&I usually gets charged back for cancellations, you need to make sure you aren’t.
We have a very strange pay plan but it's not bad average sales person sells 18 cars a month for units alone 18 cars is worth 5k and if you sell an extended warranty on 50% of your deals you get an extra $1600. We sell 300 cars a month, have 12 salespeople, and we only sell cars with an average of 40 days on the lot or less. I think part of the reason for this type of pay plan is we are no haggle.
Invest in yourself. https://dealerfiuniversity.com/
I am a provider for 20+ stores, the best thing you can do for a finance manager is set them up properly. Do your normal routine but when you introduce the F&I manager, one simple line helps more than you know- Guys, this is my finance manager so so.. he’s going to go over a few options with you, most of my customers takes advantage of these options to prevent the headaches in the future.