Since the early days of F&I, business managers have always been considered the strongest closers at the dealership. These are individuals who can overcome objections while justifying the customer’s purchase for financial or logical reasons. Not only do they have a firm grasp of the products, services and benefits they offer, but they have an uncanny ability to justify the cash down needed to protect the customer’s new investment.

Still, there are times when being a good closer can hinder the success of a business manager, especially when it comes to those not-so obvious objections.

The problem is that F&I managers must act as both a salesperson and a closer, which, in most cases, prevents them from slowing down to determine what the customer’s true objection is. Unfortunately, this can lead to a business manager handling questions like objections, which some customers may find discouraging. In the worst case scenario, that approach could lead to a missed opportunity. Let’s review two techniques business managers can use to drill down to a customer’s true objection.

Question vs. Objection

Remember, objections are always statements, while questions are just that — questions. That’s why it’s important to slow down and listen to get to the customer’s specific objection.

Now, if a customer asks a question, the correct response is to answer it. Unfortunately, in too many instances, F&I managers fail to do that. Instead, they respond as if the customer objected to what’s being offered. These situations typically play out like an exchange between a parent and child. If the parent asks the child a question and the child responds with an excuse, it usually signals to the parent that the child is trying to hide something. A customer reacts similarly if the F&I manager responds to his or her question as if it’s an objection.

When responding to a question, don’t be afraid of the answer. Let’s say the customer asks, “How much is the service contract?” Give him or her the price with full confidence. If the customer asks what the rate is on the contract, remain poised and share that as well — and remember not to sound apologetic. Now, this might sound elementary, but it’s a good practice to ask the customer a question after you’ve answered his or hers. Remember, the person doing the asking is the one who’s in control.

It’s also important to encourage the customer to ask additional questions. In fact, it’s vital to every business manager’s process because it allows the customer to participate. In any case, a business manager should have nothing to hide. Remember, questions demonstrate interest on the customer’s part, and that’s always a good sign.

Broad vs. Specific Objections

Once you’ve determined that it’s not a question, it’s time to drill down to the specific objection. Remember, there are two types of objections: broad and specific. It’s important that you drill down from the broad objection before attempting to overcome it. That’s because most broad objections can’t be overcome without discounting the price of the product, which, as we all know, reduces profitability. Discounting also reduces the credibility of the product, which could lead to a lost sale. The opposite is true when dealing with a specific objection.

When you don’t know why the customer is objecting, that’s a broad objection. F&I managers get this all the time. Many customers’ initial reactions to an offering is that they neither need nor want the product. A broad objection can even be as simple as, “No, thank you.” How can you overcome the customer’s objection when you don’t know the reason behind it? The simple answer is, you can’t. So turn that broad objection into a specific objection. Examples of specific objections are, “It costs too much,” “I am buying a good car,” or “The payment is too high.” Getting to the specific objection can be as simple as asking the customer why he or she doesn’t need or want the product.

It’s also important to know when to move on. I tend to follow the Rule of Three: Once the customer has been asked to justify his or her reason three times, I cease all attempts to close the sale.

A different approach may be required if a customer simply refuses to divulge his or her objection. A common and successful approach employed by salespeople is to simply say, “I understand.” Unfortunately, what works on the sales floor can be detrimental in the finance office. If the customer turns down the service contract and you say, “I understand,” doesn’t that mean you just agreed with their decision? Remember that under no circumstances does a business manager have to agree with the customer who declines a product.

A better way to go is to drop “understand” in favor of “appreciate.” This is purely semantics; however, it changes the conversation by helping to uncover the specific objection. Take this example: “Mr. or Mrs. Customer, I appreciate your point of view. What concerns you about the service contract?” Now, some business managers prefer to jump to the “appreciate” question right away, which is fine. However, it might be best used as a last resort after two attempts have already been made. Either way, the customer, in most cases, will reveal his or her specific objection when this technique is used.

When it comes to overcoming customer objections, the last thing you want to do is head in the wrong direction. Not only does it aggravate customers, it ruins your credibility and the credibility of your products. Drill down to your customer’s specific objection and give yourself a way to move forward.

By Tony Dupaquier