F&I and Showroom, October 2016

www fi magazine com 28 F I and Showroom October 2016 FINANCE INSURANCE vances Some focus on debt to income ratios while others focus on paymentto income Some sources include taxes and fees in their max advance while others dont Allowing customers to see your stable of finance sources online as well as interest rates listed for each is not only impressive it demonstrates transparency It also encourages them to let us compete for their business through finance sources that would otherwise be unavailable to them The possibility of being able to secure a lower rate also increases the likelihood they will submit an online credit application Including a brief video highlighting a few advantages of financing or leasing through your store also helps to educate your customers before they come into the dealership Hey every customer wants to feel like theyre an informed consumer Videos that educate and inform not sell create goodwill customer loyalty and interest in learning more 2 OFFER PRE APPROVAL BEFORE THEY BUY In the real world only a small percentage of people actually pay cash for a car The rest of us have to finance them Allowing customers to obtain pre approval without committing to buy eliminates the fear of commitment and the risk of personal humiliation if they cant qualify for financing Basically it allows the customer to take another step on the road to the sale with no obligation and zero risk Offering online pre approvals is also a great qualifying tool and can serve as a backup option in the event the customer doesnt qualify for zero percent or extended term financing For most customers allowing them to get pre approved for vehicle financing is the closest theyll ever get to paying cash In fact credit unions and direct lenders have been using pre approval as a marketing tactic for years Even the Federal Trade Commission encourages consumers to get pre approved for financing before shopping for a car Knowing youre pre approved is empowering It puts any advertised or promotional rate in context and allows you to feel like you have the flexibility to take your business elsewhere It also demonstrates transparency while shortening the time the customer spends in the dealership And as we all know educated customers are more likely to buy from and finance through the dealership that empowered them 3 LIST YOUR F I PRODUCTS Your website should list all the F I products you offer along with a simple explanation and a few benefits listed for each And whenever possible include prices for those products An example would be Tire and Wheel Road Hazard Protection from 442 depending on term and coverage selected Just make sure to use odd prices 842 not 795 to add credibility and legitimacy to your pricing Also list your product vendors and include links to their websites Brief video explanations of every F I product are also a must Make sure theyre short engaging and designed to educate inform and create interest in knowing more You may even want to include an Im interested or I need more information button for each product so your F I managers can engage the customer The real advantage of video is customers can hear and see the benefits of the product you offer Hey selling is a participatory sport and there is a huge difference between passive and active engagement And as we all know people buy more when theyre actively engaged Best of all video persuades customers to spend more time on your website Just make sure to include video testimonials from customers and experts including your service manager or insurance agent to help demonstrate the need and value of the products you offer 4 EDUCATE AND INFORM CUSTOMERS When designing your F I webpage think about the information youd want if you were shopping for a vehicle A payment calculator is a definite must but what about adding an affordability calculator It could help shoppers understand how much vehicle they can afford based on the payment and benefits they desire Links to myFICO com the National Automobile Dealers Associations Un Tech vendors arent the only ones pushing dealers to establish an online presence for their F I departments Regulators like the Federal Trade Commission are also making a strong case for connecting F I to buyers early in the shopping process On July 8 the FTC published four 60 minute videos designed to help buyers shop with confidence The agencys Finance a Car video advises consumers to check with their banks credit unions and finance companies first then take their best finance offer with them to the dealership