Using All The Tools In Your Toolbox!

• “So, what made you decide to get new car today?” (They may have had problems with their previous vehicle.) or
• “Who is going to be the primary driver?” (The person who will be driving the vehicle must be able to see themselves in a situation where the vehicle service contract would be of benefit to them.)
• “What other vehicles do you own?”  (We need to discover if this is their primary vehicle, only vehicle, or if their other car is a hoopdee!)
• “So where are you going on your first trip in your new car?”  (Nobody wants to have a breakdown away from home!)
• “You’re not putting any cash down, is that correct?”  “Yes.”  “What other cash assets do you have that you could use to repay this obligation?” (If we need cash down, we got to find it!)  Another question to ask is
• “What other cash assets do you have that would be available in an emergency?” (Even if they don’t have any cash, it demonstrates they need our products.)

When reviewing the trade-in information, you can find out a huge amount of information that can help you discover their need for a service agreement.  For example, “Your trade-in is a 2003 with 78,671 miles, is that correct?”  The simple question “Did you buy it new?” “Yes,” followed by a comment like “Wow, you put on a lot of miles,” will elicit an explanation as to why they put on so many miles. You now know how many miles per year they drive, and their driving habits.  Some additional needs discovery questions might include:

• “What percent of your vehicle use is for business?”  (If they use their car in their business, they definitely need substitute transportation, plus they may be able to write off the vehicle service agreement as a business expense!)
• “How long do you normally keep your vehicles?” followed by “Really, why do you keep them that long?”  (There’s a big difference between someone who trades every 4-5 years so they don’t have problems, vs. a customer who trades because they just want something new.”
• “What type of repairs did you have to do on your old car?”  (Always assume they had some type of repairs.  If they did have a repair, don’t forget to ask “What happened?” so they can re-live the experience.)
• “Do you have room in the garage for the new car?” followed by “Where do you normally park at night?”  “What about during the day?”  (This can help discover the need for environmental protection and a theft deterrent product.)

Using The Credit Application
The credit application is another great tool an F&I professional can use to discover customer’s needs, locate additional down payment, and begin building your case for approval by a lender.  Even the abbreviated credit applications that many dealerships use can still be a major source of customer information if you review it with the customer, and ask the right questions.  Questions you should ask when reviewing the credit application include:

• “It says you’re a farrier.  What all is involved in your job?”  (Every job has it’s hazards.  If you want to sell credit life and/or disability insurance, it’s your job to figure out what’s hazardous about their job.)
• “When you’re not working, what do you do for fun?”  (Maybe they ride a motorcycle, or as they’re known in the insurance business… a donor cycle.”
• “I see we’re putting the loan in both names.  Do you depend upon both incomes to meet your monthly obligations?”  “Yes.”  “And in the event one of those incomes were to cease, what other sources of income would you have available?”  “None.”  (You’ve just discovered they need disability insurance!)
• “How soon are you expecting an increase in salary?”  (Insufficient capacity is the number one reason a deal is rejected by lenders!)
• “It shows here you have three dependants.  How old are your kids?”  (Depending on their age, they may need fabric protection, or a vehicle service agreement if they will soon be of driving age.)

Using The Credit Bureau Report
Many times a customer who has had credit problems is basically a good, honest, decent person who because of a situation beyond their control was unable to meet their financial obligations.  If the circumstances and justification can be documented, and they are not likely to reoccur, every lender will take extenuating circumstances into consideration when making their decision.  Although previous credit history is certainly a strong indication of a customer’s creditworthiness, the primary consideration is whether or not this is a good loan, and whether the customer is now a good risk.

Properly used in your customer interview, the credit bureau report can significantly increase your chances of obtaining an approval.  It can also help you discover customer needs for your products.  While you can NOT give the customer a copy of their credit bureau report, you MAY use the information in their report as the basis for the interview.  Some typical needs discover questions include:

• “Did you ever have an account at Sears?” followed by “Did you ever have a problem with that account?” and finally “What was the reason for the problem?”  (Every customer has a story.  It’s your job to listen to their story and document it, prior to submission to a lender!)
• “What documentation do you have that supports that?”  (If they can document their story, it could mean an approval!)
• “How soon could you bring in a receipt or canceled check to show that bill has been paid?”  (If so, they’re telling the truth.)
• “It shows here you have a medical collection from St. Luke’s Hospital.  What happened?”  (Every customer with a medical collection on their bureau is an automatic for credit insurance!  Unexpected medical expenses have already damaged their credit.)

Using The Customer’s Insurance Information
While confirming and entering the insurance information into the computer, or when the customer is signing the Agreement To Provide Physical Damage Insurance, you can also establish the need for GAP, theft deterrent product, and even a tire and wheel road hazard product.  After confirming who they have their insurance through, some questions you can ask include:“What type of deductibles and liability coverage will you have on this vehicle?”  (In most states, GAP would pay their deductible, in the event their vehicle is a total loss.  If they have less than a $500 deductible, they may want to raise their deductible.  The savings on their insurance will help pay for the GAP!)

• “Have you, or anyone in your family ever had an accident?”  (If they so, ask them “What happened?”  We want them to relive the experience, so they recognize it could happen again.  If they’ve never had a claim, they sure wouldn’t want to file one for road hazard.)
• “What type of theft deterrent system did you get on your vehicle?”  (This sets the stage for additional “layered” protection.)
• “If you were in an accident and your vehicle were stolen and declared a total loss, where would you get the money to pay off the deficiency?”  (You establish the fact that they are liable for the deficiency, something most customers don’t realize or have never considered.)
• “What type of roadside assistance coverage do they provide?”  (Do they really want to file a claim for a flat tire with their insurance company?)

Needs discovery is the most important part of the entire F&I process.  By using all the tools in your toolbox, the buyer’s order, the credit application, the credit bureau report, and insurance information, you can ask all the questions you want, allowing you to continuously discover customer needs throughout the F&I process.  A customer is much more likely to buy a product when you can communicate how that product will benefit them specifically, vs. forcing them to listen to a generic feature-advantage-benefit presentation.  Remember, every day, with every customer, and with every F&I product, it still comes down to that all important question: “How will this product help this customer?”