What's your best payment and Interest rate !!! How Do You Handle It?
Salespeople do all the right steps to the sale and the customer is ready to ok the paperwork and the last question they have is what is my best payment and interest rate.
How do you handle it?
If you give them a payment they will ask, at what rate did you figure my payment?
Remember it is against the law to pack payments!
Also you can't give the backin away like many Sales Mgr do just to close them down!
I would like to hear your best way to handle it then I will share with you my best close without ever giving a Interest rate or payment. The finance mgr will love you when you use this one!
Replies to This Discussion
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Permalink Reply by Gerry Gould on
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First off...we don't know they're FICO score at the 1st pencil because they have not filled out a credit application yet. The credit app comes prior to the 2nd pencil and to stay credible you need to give the customer an exact rate. Second of all...train the sales staff on the proper word tracks and it will go smooth as silk. I've been doing it with HUGE success for the past several years.
Great debate...
MANNY LUNA said:I dont agree! Again, Why would quote a Avg rate to a 850 becon customer! They will look at you and think your smoking Crack! And you will lose all the respect that it took to earn the last 2 hrs!!!!
Tobias Sedillos You run a different program you do all of your deals for your car lot and can be that way with your customers, But I don't think at a dealership the Professional Business Mgr would like you playing with his family's money.
Thank you for posting!
Gerry Gould said:Great answer Tobias...why dance around it? Best practice is what Brian Martin recommended we should present the intitial payment (1st pencil) based on an average rate and load the sales consultants lips."Mr Jones your rate may be higher or lower depending on your credit rating". Once a credit app has been filed out present the customer with a specific rate. Again load the sales consultants lips "If you wish to finance here, this is the rate that’s available” or “The final rate may differ depending on the actual terms of the financial institutions acceptance, and is negotiable” (remember the stating this is the "best rate" can put you in hot water) follow up with " One of the business manager will be able to answer any additional questions regarding the rate, fair enough?"
Tobias Sedillos said:I handle it by giving them the answer… Is this a trick question?! -
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Permalink Reply by Tobias Sedillos on
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Many luna worte: "Tobias Sedillos You run a different program you do all of your deals for your car lot and can be that way with your customers, But I don't think at a dealership the Professional Business Mgr would like you playing with his family's money."
Manny,
Let me shed some light on this for you, from my perspective: You asked me a question, and I shared with you my answer. When my clients ask me a question like this, I give them the answer. People appreciate truth. Put yourself in their shoes for a moment – if you ask this question, what answer would you want?!
I am not encouraging sales people to dig in on the Business Manager's right to earn a fair living and provide for his family for his service. In fact, it's just the opposite – I am asking for him to have the opportunity to earn it.
Now, if the question had been posed,"How should a salesperson handle the question about best payment and rate; if they are unsure of the answer?" Then my response would have been for the salesperson to answer in a reassuring tone: "I know those details are important to you, and I am going to make sure the right person answers those for you - to ensure clarity. There is probably a few different ways to structure this, and he may need some input from you to determine what's best for you. In a few moments, I'll get you introduced." - And to continue completing their tasks before this introduction occurs.
I believe that if your heart is in the right place, and you enjoy doing things "for" people – and not "to" people… Everybody will recognize it: your clients and your fellow employees. If your answer requires you to say anything but the absolute truth, then it is the wrong answer. People enjoy doing business with those who have their best interest in mind. They will feel confident referring you to the people they love, if you'd treat them honestly and fairly – and always work with integrity. It is written:
"Truthful lips endure forever, but a lying tongue lasts only a moment."
Proverbs 12:19 (New International Version)
If you are the person that handles the entire sales process from beginning to end, like me; then I look at this question as an invitation to move forward and do business. The transition is very easy for me, I say, "There's a few ways I could structure this, let me line out some options for you and get some input about which one is best."
I really like these forums, because we all get to grow together.
Warmly,
Tobias
MANNY LUNA said:I dont agree! Again, Why would quote a Avg rate to a 850 becon customer! They will look at you and think your smoking Crack! And you will lose all the respect that it took to earn the last 2 hrs!!!!
Tobias Sedillos You run a different program you do all of your deals for your car lot and can be that way with your customers, But I don't think at a dealership the Professional Business Mgr would like you playing with his family's money.
Thank you for posting!
Gerry Gould said:Great answer Tobias...why dance around it? Best practice is what Brian Martin recommended we should present the intitial payment (1st pencil) based on an average rate and load the sales consultants lips."Mr Jones your rate may be higher or lower depending on your credit rating". Once a credit app has been filed out present the customer with a specific rate. Again load the sales consultants lips "If you wish to finance here, this is the rate that’s available” or “The final rate may differ depending on the actual terms of the financial institutions acceptance, and is negotiable” (remember the stating this is the "best rate" can put you in hot water) follow up with " One of the business manager will be able to answer any additional questions regarding the rate, fair enough?"
Tobias Sedillos said:I handle it by giving them the answer… Is this a trick question?! -
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Thank you for your input Gerry!
Gerry Gould said:Great answer Tobias...why dance around it? Best practice is what Brian Martin recommended we should present the intitial payment (1st pencil) based on an average rate and load the sales consultants lips."Mr Jones your rate may be higher or lower depending on your credit rating". Once a credit app has been filed out present the customer with a specific rate. Again load the sales consultants lips "If you wish to finance here, this is the rate that’s available” or “The final rate may differ depending on the actual terms of the financial institutions acceptance, and is negotiable” (remember the stating this is the "best rate" can put you in hot water) follow up with " One of the business manager will be able to answer any additional questions regarding the rate, fair enough?"
Tobias Sedillos said:I handle it by giving them the answer… Is this a trick question?! -
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Permalink Reply by MANNY LUNA on
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Your right Never say Best Rate! It;s Finest Rate!
Tobias Sedillos said:Thank you for your input Gerry!
Gerry Gould said:Great answer Tobias...why dance around it? Best practice is what Brian Martin recommended we should present the intitial payment (1st pencil) based on an average rate and load the sales consultants lips."Mr Jones your rate may be higher or lower depending on your credit rating". Once a credit app has been filed out present the customer with a specific rate. Again load the sales consultants lips "If you wish to finance here, this is the rate that’s available” or “The final rate may differ depending on the actual terms of the financial institutions acceptance, and is negotiable” (remember the stating this is the "best rate" can put you in hot water) follow up with " One of the business manager will be able to answer any additional questions regarding the rate, fair enough?"
Tobias Sedillos said:I handle it by giving them the answer… Is this a trick question?! -
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Permalink Reply by MANNY LUNA on
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I agree 100% and thats great!!!!
Me I have the salesman set the the deal up just like I said!
And yes! I am The Closer and thats the way I want it to be, I can't count how many times that I have a customer come in my office and lay down on not just one car but two coming out of the box.
And after talking to me going with a less expensive car and making more gross for the dealer.
But that's just me?
Thank You for your post!!!!
Dan Creamer said:If the question about payment & rate is the first thing out of a clients mouth the proper response is "I can certainly appreciate your interest in establishing a monthly payment and knowing your rate. Whenever I invest in something this important those are important considerations to me too. There are a lot of variables that go into an accurate answer though like the quality of your credit. How is your credit Mr Jones have you checked it lately for accuracy and indenity theft problems?" (LISTEN TO THE RESPONSE) Customer says they have great credit and its recently been verified. "Thats wonderful Mr Jones with credit like that I am sure that my business manager who's job it is-will be able to get you a rate satisfactory to you and the bank- based on a down payment satisfactory to you and the bank- all of which depends on your credit which we know is good and the vehicle we select which we have yet to do. Tell me were you looking to replace a vehicle or add an additional vehicle for your family's use and enjoyment?"
Customer answers that he has credit problems or has not recently checked his credit status.
Well Mr. Jones I am sure you can appreciate the quality of your credit is important to the bank but fortunately our business manager whose job it is to get you a rate and payment satisfactory to you and the bank is very good at what he does and it does not require perfect credit to buy a car here. What he will need to know to answer your question among other things is what vehicle we have selected. Tell me were you looking to replace a car or get an additional one for your family's use and enjoyment?
These word tracks have the advantage of being true and also bringing the customer back into focusing on the selectiion process. A variation of the same word track is used after the first pencil which does not include a payment quote due to the regulatory climate we find ourselves in. Back in the day it included a packed payment and worked the same way
The intention is to move the customer to agree to a set of figures based on the finance manager being able to get them a monthly payment agreeable to them based on a down payment and rate agreeable to them and the bank without quoting more then one short term advanced equity type payment if any on the floor.
For this to work your finance managers have to be closers and your clients need to be settled on a car when turned to finance.
I worked in a store where this word track was called a payment drill and we delivered seven to eight hundred a month at over three thousand dollars front and back to the most sophisticated buyers imaginable. It works and if anybody wants help implementing it just let me know. -
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Old School, need to stop twisting things into the same old same old look it up "best" and "finest" is the same meaning...Transparency is now. Intelligent logical dialog goes a long way. Train Train and more Training that's how to get it done.
I Like Dan's comments. Nothing happens until a car is sold!
All good stuff!
MANNY LUNA said:Your right Never say Best Rate! It;s Finest Rate!
Tobias Sedillos said:Thank you for your input Gerry!
Gerry Gould said:Great answer Tobias...why dance around it? Best practice is what Brian Martin recommended we should present the intitial payment (1st pencil) based on an average rate and load the sales consultants lips."Mr Jones your rate may be higher or lower depending on your credit rating". Once a credit app has been filed out present the customer with a specific rate. Again load the sales consultants lips "If you wish to finance here, this is the rate that’s available” or “The final rate may differ depending on the actual terms of the financial institutions acceptance, and is negotiable” (remember the stating this is the "best rate" can put you in hot water) follow up with " One of the business manager will be able to answer any additional questions regarding the rate, fair enough?"
Tobias Sedillos said:I handle it by giving them the answer… Is this a trick question?! -
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Permalink Reply by Brian K. Martin on
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Quoting an average rate to all customers 100% of the time will ensure the dealer of being legally compliant, and prevents the sales people and managers from pre judging the customer. Informing your customers of the process used to quote payments in the store will further build credibility and trust between you and your customer. Explaning to your customer, "Here at our dealership we use an average rate of credit provided by our lenders as a bases. We use the same rate for evey customer so that we remain consistant and compliant in every transaction. The good news is that if you have excellent credit the payment we have provide for you today will go down. We understand how important payments and rates are to you, so if the term is acceptable to you let us introduce you to our business manager and they can wrap eveything up for you."
Quoting different rates from the desk based on the deal is not consider a consistant practice. RED FLAG requries a consistant, written process in the dealership. Quoting rates of different amounts can and will get into trouble. Allow the business office to work through your lenders to establish the customer rate. This legal and your customer will appreciate the effort. -
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Permalink Reply by MANNY LUNA on
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BEST IS AGAINEST THE LAW ! AND ONE OF THE FINEST IS NOT!
LOOK IT UP!
OR JUST ASK Jim Radogna
http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.dealercomply.com%2...
Gerry Gould said:Old School, need to stop twisting things into the same old same old look it up "best" and "finest" is the same meaning...Transparency is now. Intelligent logical dialog goes a long way. Train Train and more Training that's how to get it done.
I Like Dan's comments. Nothing happens until a car is sold!
All good stuff!
MANNY LUNA said:Your right Never say Best Rate! It;s Finest Rate!
Tobias Sedillos said:Thank you for your input Gerry!
Gerry Gould said:Great answer Tobias...why dance around it? Best practice is what Brian Martin recommended we should present the intitial payment (1st pencil) based on an average rate and load the sales consultants lips."Mr Jones your rate may be higher or lower depending on your credit rating". Once a credit app has been filed out present the customer with a specific rate. Again load the sales consultants lips "If you wish to finance here, this is the rate that’s available” or “The final rate may differ depending on the actual terms of the financial institutions acceptance, and is negotiable” (remember the stating this is the "best rate" can put you in hot water) follow up with " One of the business manager will be able to answer any additional questions regarding the rate, fair enough?"
Tobias Sedillos said:I handle it by giving them the answer… Is this a trick question?! -
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Simply stated, the rate is the rate. Not good, Finest or anything else. It is simply the rate. Lets all remember RED FLAG LAWS are to protect the consumer, not the dealer!. If you are a service contract company, sales trainer you need to know the law. That is why the dealer is hiring you. Not just to improve process and make more money; but too, help him keep more of what he makes and protect it from un needed law suites. Not knowing RED FLAG is not an excuse. The first time the dealer gets fined becuase of a RED FLAG violation be prepared to be FIRED!
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Permalink Reply by MANNY LUNA on
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AND THATS WHY I SAY IT THIS WAY!
My Anwser Is........
Dear customer that's a very good question, Is that all that's keeping us from moving forward with the paperwork?
Customer: YES IT IS!
My I ask you a question, If you bought your new car and after 24 month's the engine light came on would you trust me or a professional mechanic to tell you what's wrong with your car?
Customer will say: A professional mechanic.
That's why I would like you to talk to a Professional Business Mgr to go over all the options of owning your new car!
Please follow me to the winners circle and I will let our Professional Business Mgr know you will be waiting to talk to them.
Follow me.
Brian K. Martin said:Simply stated, the rate is the rate. Not good, Finest or anything else. It is simply the rate. Lets all remember RED FLAG LAWS are to protect the consumer, not the dealer!. If you are a service contract company, sales trainer you need to know the law. That is why the dealer is hiring you. Not just to improve process and make more money; but too, help him keep more of what he makes and protect it from un needed law suites. Not knowing RED FLAG is not an excuse. The first time the dealer gets fined becuase of a RED FLAG violation be prepared to be FIRED! -
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Permalink Reply by MANNY LUNA on
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AND THATS WHY I SAY IT THIS WAY EVERY TIME!
AND NEVER SAY WORD ABOUT PAYMENT OR RATE Brian K. Martin.
My Anwser Is........
Dear customer that's a very good question, Is that all that's keeping us from moving forward with the paperwork?
Customer: YES IT IS!
My I ask you a question, If you bought your new car and after 24 month's the engine light came on would you trust me or a professional mechanic to tell you what's wrong with your car?
Customer will say: A professional mechanic.
That's why I would like you to talk to a Professional Business Mgr to go over all the options of owning your new car!
Please follow me to the winners circle and I will let our Professional Business Mgr know you will be waiting to talk to them.
Follow me.
Brian K. Martin said:Simply stated, the rate is the rate. Not good, Finest or anything else. It is simply the rate. Lets all remember RED FLAG LAWS are to protect the consumer, not the dealer!. If you are a service contract company, sales trainer you need to know the law. That is why the dealer is hiring you. Not just to improve process and make more money; but too, help him keep more of what he makes and protect it from un needed law suites. Not knowing RED FLAG is not an excuse. The first time the dealer gets fined becuase of a RED FLAG violation be prepared to be FIRED! -
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Permalink Reply by MANNY LUNA on
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FORGIVE ME I WAS WRONG!!!
THIS IS WHAT Jim Radogna SAID........... I think the best way to approach rate is to say something to the effect "we feel that the rate we are offering is extremely competitive". This way you are expressing an opinion rather than stating a fact that a lawyer may try to refute. I'm... pretty sure an attorney could convince a judge that "best" and "finest" are the same thing.
http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.dealercomply.com%2...
MANNY LUNA said:AND THATS WHY I SAY IT THIS WAY EVERY TIME!
AND NEVER SAY WORD ABOUT PAYMENT OR RATE Brian K. Martin.
My Anwser Is........
Dear customer that's a very good question, Is that all that's keeping us from moving forward with the paperwork?
Customer: YES IT IS!
My I ask you a question, If you bought your new car and after 24 month's the engine light came on would you trust me or a professional mechanic to tell you what's wrong with your car?
Customer will say: A professional mechanic.
That's why I would like you to talk to a Professional Business Mgr to go over all the options of owning your new car!
Please follow me to the winners circle and I will let our Professional Business Mgr know you will be waiting to talk to them.
Follow me.
Brian K. Martin said:Simply stated, the rate is the rate. Not good, Finest or anything else. It is simply the rate. Lets all remember RED FLAG LAWS are to protect the consumer, not the dealer!. If you are a service contract company, sales trainer you need to know the law. That is why the dealer is hiring you. Not just to improve process and make more money; but too, help him keep more of what he makes and protect it from un needed law suites. Not knowing RED FLAG is not an excuse. The first time the dealer gets fined becuase of a RED FLAG violation be prepared to be FIRED! -
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