The Five Myths of F&I

We live in the real world. Make-believe should be relegated to children’s stories and movies. However, five myths have weaved their way into the F&I process. Customers know this is not the real world, and it is time we realized it and concentrated on real solutions. Eliminate the myths, and replace them with customer-focused, value-building principles!

1. Selling is all about closing, closing, closing!

The key to helping a customer today is to build a genuine relationship with them early in the buying process. Trust has become the currency of today’s customer. And they will only spend it with people whom they trust. Connecting is much more important than closing! Hire and promote relationship-builders. Structure the buying process to focus on building genuine relationships, and you will find that customer needs are revealed where relationships are built!

2. F&I professionals who are "good talkers" with a "great pitch" win the most.

We have been told that, “if you know how to talk, you will be great in F&I.” The opposite is true! Great F&I professionals are great listeners, not great talkers. Great talkers can move the least resistant customers to see it “their” way. However, the well-informed buyer of today must meet someone who is genuinely interested in them and their thoughts and needs. When that happens, everyone wins! Do you spend more time talking than listening? I know I am guilty of this, and the more I focus on listening, the more helpful and successful I am!

3.  All the information you need to move a customer to buy can be found in the documents!

The documents can tell you some of the “what” that is needed to help a customer make good buying decisions. However, the why of the buy is found in focusing on uncovering what each customer needs to make for a great ownership experience. The unique reasons each customer needs the products offered can be found in a listening and focused conversation with them. The focus must be on them and their needs, not ours!

4. Word tracks will move customers. If you just say the right thing, it will be almost impossible to resist.

Moving a customer from no to yes is driven by what we “show” them, not in what we “say” to them.

Useful insights are helpful but only if supported by visual, real proof that what we are saying is true. Verbal efforts alone leave the customer waiting for that visual proof, and if it is lacking, they discount what we are saying. The days of just believing in a convincing salesperson have passed, and customers deserve and should expect more!

5. The things the customer said earlier made them feel good; however, they are of no use when selling!

Discovering the customers’ needs and wants is essential before the options are presented. Show them an intentional effort, and reap actual lasting rewards. After the initial no that most all customers feel obligated to provide, bringing back what they said earlier makes them aware that they have been heard, and the effort to move from no to yes will be based on their particular needs. It is their vehicle; their experience and their needs should be the basis for our discussion.

Customers are looking for a process that is focused on them and their needs. Move past the myths, provide this customer-focused process, and move higher in every category and reach toward Peak Performance!

Rick McCormick is national account development manager for Reahard & Associates.