Top 3 F&I Objections and How To Handle Them
Top 3 F&I Objections and How To Handle Them
Handling objections in the F&I office can be challenging, but it’s an essential skill that can make or break a deal. We've all been there: at the end of a presentation, the customer looks at you and says, “I can't afford it,” “I’ve had it before and never used it,” or “That price is way too high.” These common objections can be tricky, but with the right approach, you can turn a hesitant customer into a happy one.
The Power of Questions
One of the best ways to handle objections is by asking questions. Instead of trying to convince the customer with a list of benefits, engage them in a conversation. For example, if a customer says they never buy such products, don’t just accept their answer. Instead, ask them, “What is it about these programs that concerns you?” By doing this, you’re opening the door for them to express their doubts, which you can then address directly.
Engaging with questions accomplishes two key things. First, it shows the customer that you’re genuinely interested in their needs and concerns. This builds trust and rapport, making them more open to your suggestions. Second, it allows you to gather valuable information that you can use to tailor your response. For instance, if a customer is worried about the cost, you can break down the expenses in a way that makes them more manageable, which we’ll discuss in more detail later.
Addressing “I Don’t Need It”
When a customer says they don’t need a product, it’s important to help them see the value. Many customers don’t realize the peace of mind that comes with knowing their high payments won’t be disrupted by unexpected costs. Explain the difference between essential and non-essential spending. They need to make their car payments, put gas in the car, and maintain it. But they might not be prepared for the extra costs of tire and wheel repairs, replacing a key, or fixing a ding or dent. By highlighting these potential expenses, you can help them see the value in the coverage.
For example, you might say, “With the high price of vehicles and the high payments you’re making, the last thing you want is an unexpected expense like a tire repair or key replacement. These are costs that you don’t think about until they happen, and they can be a significant burden. By opting for this coverage, you’re protecting yourself from these unexpected expenses and ensuring that your budget stays on track.”
You can also share stories or examples from other customers. Maybe you had a customer who didn’t think they needed the coverage, but then faced a significant repair bill that could have been covered. Real-life examples can make the benefits more tangible and relatable.
Tackling “Had It Before and Never Used It”
When a customer tells you they’ve had a product before but never used it, it’s a perfect opportunity to remind them of the peace of mind they had. Ask them why they purchased it the last time. Often, they’ll say it was in case something happened. Reinforce that same reasoning for the current situation. Explain that while they might not have used it before, it provided them with peace of mind. And that peace of mind is just as valuable now.
Consider framing it like this: “You mentioned you had this coverage before but never used it. That’s actually a good thing. It means you didn’t have any major issues, which is great. But having that coverage gave you peace of mind, knowing that if something did happen, you were protected. Don’t you think it’s worth having that same peace of mind this time around?”
This approach helps the customer see that the value of the product isn’t just in its use, but in the assurance it provides. It’s about being prepared for the unexpected, even if those events never come to pass.
The Classic “I Can’t Afford It”
This objection is common, but it can be overcome with a simple exercise. Ask the customer for their current monthly payment and divide it by 30 to show their daily cost. For example, if their payment is $480 a month, that’s about $16 a day. Then, break down the cost of the additional product. If a service contract adds $28 a month, that’s only 93 cents a day. Compare this small daily cost to their usual daily expenses, like coffee or lunch. This makes the added expense seem minimal and more manageable.
For example, guide them through the calculation: “What’s your current monthly payment that you’re comfortable with? $480? Okay, let’s divide that by 30 days. That’s $16 a day. Now, the service contract is $28 more a month. Let’s divide that by 30 days. That’s just 93 cents a day. So for less than the cost of a cup of coffee, you can have this added protection. Is 93 cents a day going to change your lifestyle significantly? Probably not, but having to pay for a major repair out of pocket certainly could.”
This exercise helps to contextualize the cost in a way that feels more manageable and less daunting. It also shows the customer that the additional expense is minor compared to the potential savings and peace of mind they’ll gain.
Take Your Skills to the Next Level
Handling objections is an art, and with practice, you can master it. For more in-depth training, consider signing up for Product Prep Live. For just $250 a month, you get access to bi-weekly live training sessions with Gerry Gould and hundreds of hours of video content. And right now, you can get the first 30 days free! Don’t miss this opportunity to refine your skills and increase your success in the F&I office. Visit Product Prep Live to learn more and take a free test drive today. Happy selling!