Top 5 F and I Closes That Will Skyrocket Your PVR
Effectively closing deals in the competitive Finance and Insurance (F&I) industry is essential for increasing your Per Vehicle Retail (PVR). To help you achieve this, we've compiled the top five F and I closes that can potentially triple your PVR in 2024. These methods are tried and tested, ensuring a high success rate when executed correctly. Let's dive into these strategies.
1. The 99.9% Reliable CloseThis close leverages the reliability of vehicles and the inevitability of some components failing. Here's how you can present it:
Start by agreeing with the customer about the reliability of their vehicle. For instance, say, "Honda, Toyota, Chevy, Chrysler – thesethey are some of the most reliable automobiles on the planet." Then, lead the customer to agree that no vehicle is 100% reliable.
Once you have their agreement, illustrate the reliability with numbers. For example, if a vehicle is 99.9% reliable, out of 5,000 components, five components might fail. Explain the potential cost of repairs for these components, which can be significant. By doing so, you highlight the value of a vehicle service contract that covers these unforeseen repairs. This approach helps customers see the practical benefits and encourages them to enroll in the service contract.
Another critical aspect of this close is using real-world examples. Sharing stories of customers who faced unexpected repairs and how the service contract saved them can be very persuasive. This not only makes the situation relatable but also builds trust as you demonstrate that these scenarios do occur and the service contract is a worthwhile investment.
2. The “Free No” CloseAfter explaining the various products, such as vehicle service contracts, tire and wheel protection, and key replacement, ask the customer if they have any questions. When they say no, use this as an opportunity to delve into thisthe closing techniques.
If the customer expresses no interest in the programs, acknowledge their sentiment by saying, "I get it, these options aren't for everybody." Then, probe deeper by asking, "Isn't that how you feel, Mr./Mrs. Jones?" This usually gets a nod of agreement. Follow up by identifying which product they might be interested in if cost were not an issue. This helps to pinpoint their priorities and allows you to focus your pitch on the products they care about most.
The beauty of the “Free No” Close lies in its ability to disarm the customer. By acknowledging their initial disinterest, you lower their defenses, making them more open to hearing about the products again. This method also allows you to identify any underlying objections they might have and address them directly.
3. The Three Warranty CloseMany customers rely heavily on their factory warranty, assuming it covers all potential issues. This close helps clarify the gaps in factory warranties and presents the service contract as a comprehensive solution.
Start by asking about their understanding of the factory warranty. Explain that most vehicles come with three types of warranties: the initial adjustment period (e.g., 12 months/12,000 miles), the basic warranty (e.g., 3 years/36,000 miles), and the powertrain warranty (e.g., 5 years/60,000 miles). Highlight that the powertrain warranty covers only the lubricated internal components of the engine, transmission, and drivetrain.
Explain why manufacturers limit their liability over time and components. Emphasize that electronics and other non-lubricated parts are more likely to fail and are not covered for as long. This sets the stage for explaining the value of a service contract that covers these vulnerable components for the entire ownership period, providing peace of mind and financial protection.
To make this close more effective, use data and statistics to back up your claims. For instance, mention the common issues that occur after the factory warranty expires and the average cost of repairs. This not only reinforces the importance of the service contract but also makes your argument more credible and convincing.
4. The Calculator CloseWhen customers express concern about the additional cost, break it down into manageable daily expenses to highlight its affordability.
Take the customer's base monthly payment and divide it by 30 to find the daily cost. Do the same for the additional cost of the service contract or other F&I products. For example, if the base payment is $530 and the additional cost is $48, show that the daily cost is only about $1.60 for the added protection. This perspective makes the expense seem minimal and more palatable, increasing the likelihood of the customer opting in.
Further, illustrate the daily cost by comparing it to everyday expenses. Mention that $1.60 is less than the cost of a cup of coffee or a fast food item. This comparison helps customers realize that the additional cost is insignificant in the grand scheme of their daily expenses, yet the benefits they receive are substantial.
5. The Service Contract CloseFinally, use the Service Contract Close to emphasize the comprehensive coverage and convenience offered by the service contract.
Start by acknowledging the customer’s hesitation due to cost. Then, explain the wide range of issues the service contract covers, from mechanical and electrical breakdowns to unexpected road hazards. Stress the high cost of repairs and the inconvenience of dealing with multiple issues out-of-pocket.
Highlight the peace of mind and convenience of having a single solution that covers almost all potential problems. Reinforce the idea that the service contract is an investment in the vehicle's longevity and the customer’s financial security. This approach often convinces customers of the value and practicality of the service contract.
To further solidify this close, share testimonials from satisfied customers who have benefited from the service contract. Real-life examples and positive feedback can be incredibly persuasive, helping potential buyers see the tangible benefits and feel more confident in their decision.
ConclusionMastering these F and I closes can significantly enhance your ability to sell F&I products and boost your PVR. Remember, the key is to present the value of the products clearly and to address the customer’s concerns with logical, relatable explanations. By doing so, you not only increase your sales but also build trust and satisfaction with your customers, ensuring long-term success in the F&I arena. Here's to a prosperous 2024 with higher PVRs and satisfied customers!
For those looking to enhance their skills further, consider taking specialized courses and staying updated with new strategies. F&I managers and product providers can benefit from attending workshops, reading industry publications, and networking with peers to share experiences and insights. The strategy for F&I is not only about selling products but also about building strong customer relationships and offering genuine value. By understanding and addressing your customers' needs and concerns, you create a win-win situation that benefits both the customer and the dealership.
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