It’s an age-old struggle. The sales department fears the F&I department will sabotage a deal, and the F&I department complains that sales doesn’t know the meaning of a proper turnover. But does it have to be this way? No, it doesn’t.
What salespeople and sales managers need to understand is the F&I manager may be able to offer viable options to a “cash” customer. That’s why every customer should at least hear what the F&I manager has to say. Regardless of how the customer chooses to pay for his or her purchase, it’s imperative the F&I manager gets the opportunity to speak with the customer before he or she leaves the store.
Let’s say that the customer is adamant about using his or her own financing source. If the customer leaves the store before speaking to the F&I manager, more than likely he or she will come back with a check preprinted for the exact amount of the bike. The problem with that is it leaves no room for a pre-paid maintenance plan, a vehicle service contract, GAP, theft protection, or tire-and-wheel protection, all of which are valuable options that can be added to the customer’s loan.
The problem is it’s too late to introduce those options once the customer has the check in-hand, as most customers will not pay cash for those products. It’s also highly unlikely customers will make another trip to the bank to restructure their loan.
Regardless of the situation, not allowing your F&I manager to talk to the customer can be an expensive decision, not only for the store’s bottom line, but also for the customer. That’s because you’ve left your customer unprotected against any unforeseen circumstance.
So, how do we avoid this from happening? The key to getting both departments to work together is communication. There also needs to be a process in place that ensures a proper turnover from sales to F&I.
In the two stores I worked for, the salesperson always took the credit application. Then he or she would bring the application, a photo ID, and his or her worksheet to the sales manager. The sales manager would then check for accuracy before sending everything to F&I. As soon as I had either an approval or a decline, I would page the salesperson.
In the event of a decline, the salesperson would take me straight to the customer, introduce me, and scoot. I would then take the customer back to my office, inform them of the decline, and politely question him or her about alternative options. I’m sure most of you are familiar with how that conversation typically ends — a handshake, a smile, and a “Please let us know if anything changes.”
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If I did get an approval, I always questioned the salesperson first. “Is this a deal, or are you still discussing numbers? And is the customer ready to take it today?” Then I’d ask, “Has he been to the parts department yet?” (Note: The answer to that last question should be no.)
After the salesperson answers “no,” he or she would then go back to the customer to introduce him or her to the service manager. In the meantime, I would build the deal in the system and prepare the menu. Once I was done, I’d go out to meet the customer.
After I reconnected with the customer, I’d take him or her back to my office to explain the menu and all options. I also use this time to verify the customer’s information, such as his or her address, phone numbers and ID. In other words, I’d check everything needed to paper the deal.
At that point, I would ask for a few minutes to print out the paperwork. During this time I would also say to the customer, “In the meantime sir, I would like to introduce you to our parts department staff. Do you already have a helmet and jacket, or would you like to add them into the deal? You have X-amount of dollars left in your financing if you’d like to add them in.”
From there, it was off to the parts department. Aside from making the proper introductions, I’d tell the parts manager how much financing dollars the customer had left. This accomplished a couple of things. First, with the salesperson introducing the customer to the service manager and me introducing him or her to the parts manager, the customer gets to meet both managers. Second, introducing each manager in the order I described provided me with the first shot at the customer’s financing dollars. Most people can afford $200 out of pocket for a helmet, but not $1,200 for a vehicle service contract.
As soon as I turned the customer over to parts, I printed everything but the bill of sale and the contract. When the parts department finished, they’d either call me with a new amount if the customer opted to finance parts and accessories, or they’d tell me there was no change. The customer is then seated back in my office two short minutes later to sign the paperwork. Keep in mind, however, that if the final number does change, you need to explain how the changes will affect the customer’s payment.
I know it sounds like a lot of back-and-forth, but this process can be quick and seamless with a little practice and some teamwork. Most of all, this process will ensure that every customer is taken care of from start to finish.
There’s one other thing to consider when developing your process. Since salespeople are driven by what’s in it for them (and who can blame them?), I’d recommend a spiff program for every correct turnover they perform. Once they are comfortable with the process, you can change the spiff program to reflect the store’s goals for any given month.
And remember, the F&I manager doesn’t want or need sales to try and sell the product, but even one brief sentence by the salesperson can plant that much-needed seed!
Mary Hole has more than six years of experience in powersports F&I. She currently serves as an F&I manager in an automotive dealership. She can be reached at mary.hole@bobit.com.
