3 F&I Closing Techniques That Will Double Your PVR In 2025

The F&I department is the backbone of dealership profitability, but its challenges are evolving. Modern customers are more informed, with shorter attention spans and an increased reliance on online research. The days of lengthy pitches and traditional sales methods are gone. Today’s buyers demand precision, clarity, and relevance.

To stay competitive, F&I managers must adopt innovative techniques that resonate with these well-informed customers. Gerry Gould, a renowned F&I trainer with decades of experience, offers game-changing strategies tailored for 2025. In this article, we’ll dive deep into the three closing techniques he champions—proven methods designed to double your PVR by aligning with today’s customer expectations.

Key Takeaways

• Concise Communication is Crucial: Deliver direct, value-packed presentations to hold customer attention.
• Visual Engagement Drives Results: Show, don’t just tell—illustrations and tangible props enhance the customer’s understanding of your offerings.
• Break Down Costs for Clarity: Present pricing in relatable terms, like daily expenses, to make purchases feel affordable.

Why F&I Techniques Need to Evolve for 2025

The automotive industry has undergone dramatic changes, particularly in how consumers interact with dealerships.

A staggering 80–90% of vehicle shoppers conduct research online before stepping into a dealership. They know about service contracts, GAP insurance, and protection plans. Many have already formed opinions, making it harder for F&I managers to sway them during brief interactions.

Customers no longer tolerate lengthy presentations filled with technical jargon or sales pitches. Instead, they expect personalized, streamlined discussions focused on their needs.

F&I departments account for a significant portion of dealership profits. Adapting to modern techniques isn’t optional—it’s critical. By adopting the strategies shared in this article, you’ll not only meet customer expectations but also position your dealership for sustained growth in profitability.

The 3 Closing Techniques to Double Your PVR

1. The 99.9% Reliable Close

This technique focuses on creating awareness about the vulnerability of even the most reliable vehicles by illustrating repair costs and potential risks. It’s a modernized take on the classic approach of emphasizing moving parts but tailored for today’s tech-driven cars.

• Begin by engaging the customer with questions about their vehicle's technology during the test drive or introduction. For instance: “What did you think of the vehicle’s safety sensors or infotainment features?”
• Highlight the complexity of modern vehicles, emphasizing their dependence on 5,000+ critical components, including semiconductors, sensors, and modules.
• Illustrate potential repair costs. For example, “Even with 99.9% reliability, five components could fail over your ownership. With an average repair cost of $1,500, that’s $7,500 in unexpected expenses.”

This technique helps customers visualize risks and understand the value of protection plans. By presenting concrete numbers and examples, you turn abstract risks into tangible concerns.

2. The Stapler and Cell Phone Close

This visually compelling technique compares basic mechanical tools (like a stapler) to advanced technology (like a smartphone) to emphasize the sophistication of today’s vehicles.

• Hold up a simple stapler and say, “This is like the combustion engines of the past—reliable, straightforward, and easy to maintain.”
• Next, display a cell phone, paired with an illustration of a vehicle’s internal technology. Explain: “This is what drives today’s vehicles—complex, tech-dependent, and costly to repair.”
• Optionally, use a toy car powered by a smartphone to drive the point home: “This phone represents the brains of your car. Protecting this technology is crucial.”

The visual contrast simplifies a complex concept, making it easier for customers to grasp the importance of coverage for tech-heavy vehicles.

3. The Calculator Close

This approach reframes monthly payments in terms of daily costs, making expenses seem more manageable and aligning them with customers’ mental budgeting habits.

1. Start with the customer’s monthly car payment. For example: “You’re comfortable with $475 a month, right?”
2. Divide that by 30 to show the daily cost. “That’s about $16 a day.”
3. Add the cost of a service contract and break it down similarly. “For just $1.27 more per day, you can have complete peace of mind.”
4. Let the customer do the math themselves using their phone’s calculator. This involvement builds trust and reinforces the affordability of the additional coverage.

By framing costs in terms of daily expenses, this technique makes add-ons feel less overwhelming and easier to justify.

Common Pitfalls to Avoid in F&I Closings

1. Information Overload: Avoid overwhelming customers with technical jargon or lengthy explanations. Keep presentations concise and focused on their needs.
2. Neglecting Visual Aids: Telling creates interest; showing creates buyers. Use props, illustrations, or even videos to make your case compelling.
3. Skipping Customer Engagement: Involve customers in the process, whether it’s using a calculator or answering questions about their driving habits.

FAQs

1. What is the most effective way to handle objections during F&I presentations?

The best approach is to listen actively and address concerns with empathy. Tie objections to the value of the product by sharing real-life scenarios or using visual aids to illustrate the benefits. Avoid pushing too hard, as this can alienate the customer.

2. How can F&I managers build trust with customers?

Transparency is key. Clearly explain the features and benefits of each product without overselling. Using real-world examples and involving the customer in decision-making builds credibility and rapport.

3. How do I handle customers who say they’re not interested in any F&I products?

Acknowledge their concerns and ask permission to share additional information. For example, “I understand you’re not interested right now, but may I show you how this product can save you money in the long run?” Use data or testimonials to reinforce your points.

4. How can I improve my closing rate as an F&I manager?

Focus on preparation and personalization. Know your products thoroughly and tailor your pitch to the customer’s specific needs. Use visuals, props, and interactive tools to engage the customer and simplify complex information.

Conclusion

The F&I landscape is changing, but with the right techniques, these challenges can become opportunities. By incorporating the 99.9% Reliable Close, the Stapler and Cell Phone Close, and the Calculator Close, F&I managers can double their PVR and build lasting customer relationships.

Product Prep’s comprehensive training programs, led by industry expert Gerry Gould, offer the tools and strategies you need to thrive in this evolving environment. Whether you’re a seasoned professional or just starting out, now is the time to invest in your success.