F&I and Showroom, October 2013

Letters Stick to the Plan TO GREGORY ARROYO I just read your Letter From the Editor in the August issue Stick With the Process Page 6 Nice work I just fi nished teaching one of our F I workshops yesterday here in Austin and was emphasizing the same concept that were focusing on the wrong issue when we talk about fi nance reserve disappearing Product benefi ts have more value to the customer than any interest rate ever will Lets move in that direction and let the banks credit unions churn out buy rate contract rate callbacks Well take the fl at and then show the customer how to have a quality ownership experience Matt Woods Director of Training Solutions Service Group Academy Austin Texas Need a Little Help TO MARV ELEAZER I enjoyed reading your article Fine Tuning F I Page 52 in the July issue of F I and Showroom magazine I am the business manager at a Cadillac dealer in Michigan As for new car sales we run about 95 percent lease deals Im writing because Im having a diffi cult time selling products on lease deals I have tried different menus word tracks etc I have tire and wheel key replacement and excess wear andtear coverage on the lease menu Most of our leases are 36 months We sell tire and wheel for 365 key replacement for 179 and 399 for excess wear and tear coverage I have been using the Team One Option Lease Menu that is available for download on the fi rms website Any input would be great I have been a business manager for 11 years Ryan Dalia Business Manager Jim Riehl Friendly Automotive Group Clinton Mich Thanks Great product mix however I think increasing your prices might be in order unless your dealer 4 F I and Showroom October 2013 or state has limited you Prepaid maintenance is also a good product to offer on leases As far as the Team One menu is concerned I would suggest contacting the company to see when George Angus will be in Michigan training again He will show you how to present his menu with the most effectiveness MARV ELEAZER TO MARV ELEAZER I am a fi nance manager for a Lexus store in New Jersey I read your article Fine Tuning F I in the July issue I really liked it A lot of the points you made were very insightful and much of them I agree with Just wanted to say good job Jeffrey K Lower Financial Services Manager Prestige Lexus Ramsey N J Cash Is King TO JOHN VECCHIONI I applaud your recognition of the last unsowed frontier of F I income in the August issue Your article Cashing In Page 30 was right on Cash buyers want to protect their vehicles by buying F I products as well I would like to add that of the 40 percent or so of customers we label as cash customers probably 70 percent of those secured their fi nancing elsewhere These customers need an installment payment option in order to purchase additional F I products in the business offi ce In addition most F I managers are adept at presenting menu displays to sell customers using a payment option They start to stutter when they have to present retail prices on product packages hence the low success rate I believe these two issues cause revenue per cash deal to be in the 200 range and not anywhere near the revenue per fi nanced deal of 1800 Signifi cant revenue increases in the F I department will only occur when dealers start selling product to cash customers Jeff Jacobs Universal Lenders LLC Schiller Park Ill Vice President Group Publisher AutoGroup Sherb Brown 310 533 2451 sherb brown@ bobit com Publisher Dealer Group National Sales Manager David Gesualdo 727 947 4027 david gesualdo@ bobit com Editorial Director Gregory Arroyo 310 533 2592 gregory arroyo@ bobit com Senior Editor Stephanie Forshee 310 533 2496 stephanie forshee@ bobit com Associate Editor Brittany Marie Swanson 310 533 2588 brittany swanson@ bobit com Art Director Vince Taroc Graphic Artist Jeff Polman Great Lakes Sales Manager Robert Brown Jr 248 601 2005 robert brown@ bobit com Sales Marketing Coordinator Tracey Tremblay 310 533 2518 tracey tremblay@ bobit com E Media and Print Production Manager Brian Peach 310 533 2548 brian peach@ bobit com Audience Marketing Manager Tony Napoleone Chairman Edward J Bobit President CEO Ty F Bobit Chief Operating Offi cer Cyndy Drummey Chief Financial Offi cer Richard E Johnson Business and Editorial Offi ce Bobit Business Media 3520 Challenger St Torrance CA 90503 Fax 310 533 2503 Change Service Requested Return Address Bobit Business Media PO Box 2703 Torrance CA 90509 Subscription Inquiries 888 239 2455 BobitPubs@ Halldata com Printed in U S A