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 Lin Poissonnier on
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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 Brian K. Martin on
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Payment and Interest rates are something that your staff; if properly trained, should be able to handle as well as any other step in the sales process. Dealer Management Group recommends managers use an average that is based on how lenders bought for the store in the prior year. In others words, if the average interest rate in the store was 9.0% on average then that is the bench mark we recommend the dealership use. By quoting everyone the same same average rate you should be considered legally compliant. Of course the customer is always going to object the payment and rate, so we recommend that when that happens, remind the customer we are simply using and average rate and term, and they may qualify for much better; and if you are using a 4 square or some other system, work toward closing on the equity / down payment and term. Remember, if you work down payment and short terms if customer qualifies and the lender allows you can always extend out to longer terms. Lastly, we always recommed a full disclosure in the F&I office. Not disclosing rate, term and payment are consider illegal and not recommended by us.
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Permalink Reply by MANNY LUNA on
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What a pro! love it! I wish I had every saleman set the deal up just like that when I was in Finance!
Great Answer!
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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That's very good and Im sure it works well with the avg credit score customer, I just wouldn't go back to a customer that has a 800 becon and quote that kinda rate, especially if there is a waiting room full of customers waiting to talk to a Business Mgr
Brian K. Martin said:Payment and Interest rates are something that your staff; if properly trained, should be able to handle as well as any other step in the sales process. Dealer Management Group recommends managers use an average that is based on how lenders bought for the store in the prior year. In others words, if the average interest rate in the store was 9.0% on average then that is the bench mark we recommend the dealership use. By quoting everyone the same same average rate you should be considered legally compliant. Of course the customer is always going to object the payment and rate, so we recommend that when that happens, remind the customer we are simply using and average rate and term, and they may qualify for much better; and if you are using a 4 square or some other system, work toward closing on the equity / down payment and term. Remember, if you work down payment and short terms if customer qualifies and the lender allows you can always extend out to longer terms. Lastly, we always recommed a full disclosure in the F&I office. Not disclosing rate, term and payment are consider illegal and not recommended by us. -
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Permalink Reply by MANNY LUNA on
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Now this one is one of my favorite closes ,Very smooth and will work all day!!!
Dan Creamer said:Mr. Customer I can appreciate how important your interest rate and payments are to you and I know my finance manager will do everything possible to satisfy you in that regard. Let me ask you a question though. Am I correct in assuming that we have picked the right vehicle and that based on a down payment, monthly payment and interest rate acceptable to you and the bank you want to own this vehicle today at the figures we agreed to? -
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Permalink Reply by Tobias Sedillos on
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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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Very Good! I love the humor!!!
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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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. -
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Permalink Reply by Gerry Gould on
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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 Bobby Compton on
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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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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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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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