F&I and Showroom, March 2014

Mad Marv His Madness is reminded of the importance of disclosure after experiencing buyers remorse over a new mobile phone plan The experience led him to develop a few best practices for ensuring sold customers stay that way By Marv Eleazer C ongratulations Youre going to love your new phone plan the salesperson told me If you have any problems dont hesitate to call Were here to help I was all smiles after spending nearly two hours at my friendly neighborhood mobile phone store I really had been among friends because many of the employees have purchased cars from my dealership I was sure they had solved my issues with dropped calls They even upgraded my phone and plan Everything was good until the fi rst bill arrived My eyes just about popped out of their sockets as I scrolled through my 14 page statement which outlined the terms of my two year commitment I recounted in my head the conversation I had with the salesperson as I drove back to the store I recalled the sales manager reviewing several options with me He explained the best plan to me in laymans terms much like I did when he purchased a service contract from me last year What had I missed The manager was busy when I arrived so another salesperson jumped in to explain the new agreement and the other options that were available In retrospect I probably wouldve chosen another plan but it was too late But after a long conversation with the salesperson I left a little calmer than I arrived My new plan I learned did offer some pretty nice benefi ts The experience got me thinking about disclosures and customer satisfaction in F I You see customers and sales staff want everything we do to be quick smooth and trouble free I guess thats why we must be experts 40 F I and Showroom March 2014 at what we do Not only do we need to answer questions without hesitation we must explain what our products do in a way the customer understands Unfortunately customers are so excited about getting behind the wheel that many of the details we discussed are forgotten Thats why its critical that the customer understands what theyre buying before they commit Nothing is more nauseating than getting a call the next day from a customer who is upset about the coverage or terms of a product To help Ive put together some recommendations that will help you head off buyers remorse Product Knowledge You cant expect your customers to understand products if you dont Thoroughly read every line of the description and make absolutely certain you understand the contents Do the same with the coverage provision Also learn the difference between wear and tear and breakdown because not all service contract providers defi ne those terms the same way Also be sure to pay special attention to the sections dealing with exclusions and noncovered items For GAP make sure you know the difference between a waiver and an addendum as some providers offer additional benefi ts such as deductible coverage Contract Knowledge Read the various installment sales contracts you execute and get clarity on items you dont completely understand For example various contracts will have exclusionary language regarding early payoffs and penalties Dont assume theyre all written by the same legal departments because theyre not Yes LAW contracts are pretty well accepted by most fi nance sources but some lenders will employ their own versions So familiarize yourself with the differences to avoid any future misunderstandings Disclose Disclose and Disclose Some More Lets start with fi nance contract disclosure If youre not completely familiar with Regulation Z and the Truth In Lending Act I suggest you start studying the CARLAW F I Legal Desk Book written by the attorneys at Hudson Cook LLP Its an excellent resource that breaks down the laws in clear terms Remember theres more to disclosure than those fi ve boxes at the top of the contract As for product disclosure to avoid premature cancellations review your service contracts stated coverage section and disclose the coverage items line by line Remind your customers what the deductibles are and that they are responsible for any diagnostic shop bill until the covered part is authorized to be fi xed As for GAP make sure your customers know they are responsible for making their monthly payment until the claim is paid The same goes for credit insurance Just remember that we do this stuff every day while our customers do it every few years or so So dont assume they can read your mind or that they will read the documents after the fact Take responsibility by making sure your customers are as informed as they can be Good luck and keep closing Marv Eleazer is the F I director at Langdale Ford in Valdosta Ga Email him at marv eleazer@ bobit com Preventive Medicine