The BEST F&I Closing Techniques For Finance Managers Who Want To Increase Their PVR

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The Power of Everyday Props

One of the most effective ways to connect with customers is by using familiar items they already have on their desks. For instance, when a customer drops their cell phone on your desk, use it as a prop. Keep a universal phone charger handy to offer them, making it a seamless segue into a conversation about protection plans. Here’s how you can turn common desk items into powerful closing tools:

1. Cell Phones and Accessories

When discussing the importance of protection plans, draw parallels to cell phone protection. Ask the customer if they have a phone case or screen protector, and highlight how they protect a relatively small investment compared to their vehicle. This analogy can make the idea of protecting their car seem like a no-brainer.

2. Mechanical Pens

Use a mechanical pen to illustrate what’s covered under a powertrain warranty. Explain that only the internal mechanisms (like those inside the pen) are covered, not the external parts. This visual aid makes the concept of coverage more tangible.

3. Glass of Water with Ice Cubes

This analogy works wonders in explaining powertrain coverage. Only the ice cubes (representing the engine) are covered, while the water (the rest of the car) is not. This simple visual helps customers understand the limitations of basic coverage.

4. Aluminum Thermos

Keep a beaten-up aluminum thermos on your desk to show the impact of environmental elements on a vehicle’s body. This visual cue emphasizes the importance of comprehensive coverage.

5. Stapler and Cell Phone

Hold up a stapler and a cell phone and ask the customer which is more likely to break over the next few years. This comparison highlights the reliability of combustion engines versus modern technology, reinforcing the need for extended warranties.

The Calculator Close: Breaking Down Costs

People budget monthly but spend daily. This insight is the cornerstone of the Calculator Close, a technique that breaks down the cost of a service contract into daily expenses. Here’s how it works:

  1. Monthly vs. Daily Spending

    Explain to the customer that while they budget their car payment monthly, they spend money daily on various small items. Highlight that adding a service contract to their monthly payment only translates to a small daily cost.

  2. Visualizing Daily Costs

    Use the customer's cell phone calculator to break down their car payment and service contract into daily amounts. For example, a $600 car payment divided by 30 days is $20 a day. Adding a $38 service contract only increases this by a little over a dollar a day.

  3. Reframing the Investment

    Ask if spending an extra $1-2 a day for peace of mind and comprehensive coverage is worth it. Most customers will agree that this small daily investment is manageable and worthwhile.

The Cycles Close: Beyond Mileage

When customers say they don't drive many miles, shift the focus to the cycles their vehicle goes through. Every start, stop, and button press puts their car through multiple cycles, similar to a washing machine. This perspective helps customers understand that wear and tear isn’t just about mileage.

Product Prep: Maximizing Your Potential

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Author: Product Prep
Date: May 13, 2024