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 Bobby Compton on
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My apology for the oversight brother Manny.
At the point a customer asks for the best rate and payment, the sales consultant should simply state - "If we can fit this vehicle into a budget that is satisfactory to you, would you be willing to buy and drive this vehicle home NOW"...
Then the rest as I explained previously:
If this is at the time of presentation: The answer I suggest is to have pulled the customers credit in advance prior to a proposal to know what rate they qualify for. Second, to present with full disclosure the maximum of points allowed by the law.
In many cases the most a dealer can hold will range between two or three points. If you present a proposal that is within reason, you will be amazed at how credible this will make your selling process and how customers will accept the rate given.
This is a process issue, and giving payments without not knowing the credit of the person buying the car is not credible nor is it what they even qualify for. The qualifications will be based on the credit, so let the rate and term be determined accordingly.
If they have any delinquent credit, even with a 700 plus score it is suggested to get a "written credit explanation". This method will soften their belly giving them the perception that their credit is not as good as they might think. Salesmanship is required to do this, and for clarification "NOT" trickery. Simply an explanation as a bank would ask the same in a mortgage loan...
Building your value and devaluation of what is devaluable on the customers credit report... If there is nothing to devalue on the credit and it's perfect, still apply the method of holding the maximum points and with full disclosure to build credibility!
Method of the full disclosure pencil or print out - Show a lower rate for a less term and adjust the rate higher on longer term, the end result will be that the customer will choose the better of the payment with the higher of the rate. Longer the term higher the rate... And off you go to holding full points... We are in this for profit and the customer needs to feel that they won... Everyone wins in this process...
Lets keep this going... Great thread... B.C.
MANNY LUNA said: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.
Its the Last Thing After The Sale Bobby
Bobby Compton said:My first question is, at what part of the sale is the question of best rate and payment being asked? Is this question being asked during the presentation of figures or prior to picking a vehicle out?
If this is at the time of presentation: The answer I suggest is to have pulled the customers credit in advance prior to a proposal to know what rate they qualify for. Second, to present with full disclosure the maximum of points allowed by the law.
In many cases the most a dealer can hold will range between two or three points. If you present a proposal that is within reason, you will be amazed at how credible this will make your selling process and how customers will accept the rate given.
If this is a scenario of the customer asking for rate and payment on the lot: It would be suggested that the sales consultant sell value and state the figures will be worked inside the dealership upon finding the vehicle of choice. Furthermore to the customer, your rate and payment will be based on your credit qualifications!
The dealership sells cars and the banks determine the rest...
Great thread... -
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Permalink Reply by MANNY LUNA on
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Bobby you don't have to apologize, your a true pro and maybe one day we can meet and really brainstorm!
Bobby Compton said:My apology for the oversight brother Manny.
At the point a customer asks for the best rate and payment, the sales consultant should simply state - "If we can fit this vehicle into a budget that is satisfactory to you, would you be willing to buy and drive this vehicle home NOW"...
Then the rest as I explained previously:
If this is at the time of presentation: The answer I suggest is to have pulled the customers credit in advance prior to a proposal to know what rate they qualify for. Second, to present with full disclosure the maximum of points allowed by the law.
In many cases the most a dealer can hold will range between two or three points. If you present a proposal that is within reason, you will be amazed at how credible this will make your selling process and how customers will accept the rate given.
This is a process issue, and giving payments without not knowing the credit of the person buying the car is not credible nor is it what they even qualify for. The qualifications will be based on the credit, so let the rate and term be determined accordingly.
If they have any delinquent credit, even with a 700 plus score it is suggested to get a "written credit explanation". This method will soften their belly giving them the perception that their credit is not as good as they might think. Salesmanship is required to do this, and for clarification "NOT" trickery. Simply an explanation as a bank would ask the same in a mortgage loan...
Building your value and devaluation of what is devaluable on the customers credit report... If there is nothing to devalue on the credit and it's perfect, still apply the method of holding the maximum points and with full disclosure to build credibility!
Method of the full disclosure pencil or print out - Show a lower rate for a less term and adjust the rate higher on longer term, the end result will be that the customer will choose the better of the payment with the higher of the rate. Longer the term higher the rate... And off you go to holding full points... We are in this for profit and the customer needs to feel that they won... Everyone wins in this process...
Lets keep this going... Great thread... B.C.
MANNY LUNA said: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.
Its the Last Thing After The Sale Bobby
Bobby Compton said:My first question is, at what part of the sale is the question of best rate and payment being asked? Is this question being asked during the presentation of figures or prior to picking a vehicle out?
If this is at the time of presentation: The answer I suggest is to have pulled the customers credit in advance prior to a proposal to know what rate they qualify for. Second, to present with full disclosure the maximum of points allowed by the law.
In many cases the most a dealer can hold will range between two or three points. If you present a proposal that is within reason, you will be amazed at how credible this will make your selling process and how customers will accept the rate given.
If this is a scenario of the customer asking for rate and payment on the lot: It would be suggested that the sales consultant sell value and state the figures will be worked inside the dealership upon finding the vehicle of choice. Furthermore to the customer, your rate and payment will be based on your credit qualifications!
The dealership sells cars and the banks determine the rest...
Great thread... -
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Permalink Reply by MANNY LUNA on
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Reply by Lin Poissonnier 34 minutes ago
I have been reading a lot of answers.. Just think all the years. Finance Manager have had they still have a hard time with this answer. The reason that all think they are correct. My answer is what ever works that you can face your customer eye to eye with out a lie is the way to go. -
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Permalink Reply by MANNY LUNA on
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Yes Yes ! so many right way to do it!
Thank You for your post! -
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Permalink Reply by MANNY LUNA on
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Yes Yes ! so many right ways to do it!
Thank You for your post!
MANNY LUNA said:Reply by Lin Poissonnier 34 minutes ago
I have been reading a lot of answers.. Just think all the years. Finance Manager have had they still have a hard time with this answer. The reason that all think they are correct. My answer is what ever works that you can face your customer eye to eye with out a lie is the way to go. -
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Permalink Reply by MANNY LUNA on
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Jim Radogna said....How about this: "this is the finest rate we are comfortable offering you based on your portfolio. We feel that the rates we offer are extremely competitive". The problem with "best" (or "finest") rate declarations is that you could potentia...lly be accused of a deceptive or misleading act or practice, especially if you are marking up the rate. Consumer advocates (and thus lawyers) have been claiming that rate markups are unfair, deceptive, predatory, terrorism (lol), you name it, for years... Unfortunately, most courts have little or any clue as to what it takes to make a profit in the car business and will buy into attorneys' nonsensical claims. Everybody knows that mortgage companies mark up rates and that's okay. If car dealers do it, they're a pack of thieves...go figure!
Lin Poissonnier said:Mr. Customer, I know payment and rate are important to you, I am not in fiance so I will let my bussiness manager take care of that part of the sale. Other than the payment did you have any other concerns? My job is to help you pick the correct car, It is his job to get you the best rate and payment . Can we move forward? -
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Permalink Reply by MANNY LUNA on
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Jim Radogna said ...How about this: "this is the finest rate we are comfortable offering you based on your portfolio. We feel that the rates we offer are extremely competitive". The problem with "best" (or "finest") rate declarations is that you could potentia...lly be accused of a deceptive or misleading act or practice, especially if you are marking up the rate. Consumer advocates (and thus lawyers) have been claiming that rate markups are unfair, deceptive, predatory, terrorism (lol), you name it, for years... Unfortunately, most courts have little or any clue as to what it takes to make a profit in the car business and will buy into attorneys' nonsensical claims. Everybody knows that mortgage companies mark up rates and that's okay. If car dealers do it, they're a pack of thieves...go figure!
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 MANNY LUNA on
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Jim Radogna Said......How about this: "this is the finest rate we are comfortable offering you based on your portfolio. We feel that the rates we offer are extremely competitive". The problem with "best" (or "finest") rate declarations is that you could potentia...lly be accused of a deceptive or misleading act or practice, especially if you are marking up the rate. Consumer advocates (and thus lawyers) have been claiming that rate markups are unfair, deceptive, predatory, terrorism (lol), you name it, for years... Unfortunately, most courts have little or any clue as to what it takes to make a profit in the car business and will buy into attorneys' nonsensical claims. Everybody knows that mortgage companies mark up rates and that's okay. If car dealers do it, they're a pack of thieves...go figure!
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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Permalink Reply by MANNY LUNA on
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Jim Radogna Said...... How about this: "this is the finest rate we are comfortable offering you based on your portfolio. We feel that the rates we offer are extremely competitive". The problem with "best" (or "finest") rate declarations is that you could potentia...lly be accused of a deceptive or misleading act or practice, especially if you are marking up the rate. Consumer advocates (and thus lawyers) have been claiming that rate markups are unfair, deceptive, predatory, terrorism (lol), you name it, for years... Unfortunately, most courts have little or any clue as to what it takes to make a profit in the car business and will buy into attorneys' nonsensical claims. Everybody knows that mortgage companies mark up rates and that's okay. If car dealers do it, they're a pack of thieves...go figure!
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