ccilearningcenter

Desking for the Modern Retailer

Tue, 03 Feb 2026 20:14:26 GMT

Why the Sales Desk Still Drives Automotive Profitability

Today’s most successful automotive retailers understand that the sales desk process is not just a transactional step—it is the strategic control center of the dealership. How a deal is initially penciled , how terms are structured, and how expectations are set—whether in-store or through digital retail automotive desking —determines profitability, approval rates, and customer satisfaction.

This is the 80/20 rule of automotive retail desking . When the sales desk operates with discipline and consistency, results improve across the board. When it doesn’t, even strong traffic and inventory cannot compensate.

The Problem: Inconsistent Sales Desk Execution

In many dealerships, the automotive sales desk is run reactively, with little accountability or structure. Worksheets vary by salesperson. Deal structures shift deal to deal. Desk managers often find themselves taking orders rather than leading the deal strategy.

Ask a few critical questions:

Are automotive deal worksheets reviewed consistently—whether from eLead, VinSolutions, or another CRM?
Is there a defined automotive pencil strategy , or does each salesperson dictate how numbers are presented?
Are customers routinely quoted extreme terms—such as 96 months with zero money down—simply to secure agreement?

While AI in automotive sales desking and CRM automation can enhance efficiency, technology does not replace judgment. A human-driven AI automotive retail process still requires a disciplined desk manager to guide outcomes.

Zero Money Down Is an Option—Not a Strategy

Zero money down is not inherently wrong, but when it becomes the default, it undermines both profitability and lender success.

Encouraging a reasonable down payment:

Reduces monthly payments
Shortens loan terms
Builds customer equity faster
Improves lender approval odds

The most effective automotive deal structuring strategies focus on realistic terms—typically 60 to 66 months with 10–15% down —based on how customers actually buy and how lenders actually approve.

Consistent Desking Is Not Guesswork

A consistent sales desk process is not built on hypothetical numbers. It is grounded in:

A clear value price vs. retail price strategy
Payment quoting based on average rate factors customers historically accept
Alignment between sales desk and F&I execution

Consider why models like CarMax perform so well. Pricing is transparent. Payment options are structured around realistic down payment variables. Vehicle selection aligns early with credit behavior—often identified through a soft-pull credit automotive sales process that does not impact the customer’s credit score.

The result is fewer rewrites, stronger approvals, and a smoother customer experience.

Stop Landing Customers on the Wrong Vehicles

One of the most costly habits in modern automotive retail is landing a customer on a vehicle before understanding whether the deal structure aligns with lender criteria.

In today’s market, approximately 50% of U.S. consumers have some form of slow-pay or challenged credit history . Ignoring this reality until the end of the process leads to lost deals, unnecessary friction, and reduced gross.

A credit-first car deal process , when handled professionally and transparently, improves outcomes for both the customer and the dealership.

Training Sales Teams for Proactive Desking

Many sales associates are placed in a reactive position because they lack training in how to present the pencil based on customer needs and financial realities.

Modern retailers are addressing this by:

Training sales teams on early credit qualification automotive practices
Utilizing secure app-based tools to streamline data collection
Aligning vehicle selection with lender approval desking strategies

When sales associates understand how desking impacts F&I profitability, the entire dealership benefits—from speed to compliance to customer trust.

Desking Is the Bridge Between Sales and F&I

The most profitable dealerships recognize that sales desk and F&I alignment is not optional.

Desking sets the tone for:

Product penetration
Lender participation
Compliance consistency
Customer retention

A disciplined automotive desking best practice model protects gross on the front end while creating opportunity on the back end—without increasing risk.

The Bottom Line

Desking for the modern retailer is not about control—it is about clarity, consistency, and execution.

A well-run automotive sales desk strategy :

Improves lender approvals
Reduces wasted effort
Enhances transparency
Drives sustainable profitability

The question is not whether your desk is busy.
The question is whether it is intentional .

In today’s environment, modern automotive retail desking is no longer a background function—it is a competitive advantage.

Indifference in Automotive Retail: The Silent Profit Killer

Wed, 15 Jan 2025 20:29:45 GMT

Broken Processes, Broken Performance

Over the last six months, the buzz around improving F&I performance has grown louder. Everyone’s talking about “getting back to basics” as the magic fix for today’s challenges. Sure, it sounds great—but is that enough to stop the ship from sinking?

Let’s be honest: since COVID, selling cars was easy. Customers flooded dealerships, and it didn’t take much to close a deal. A handshake and a smile were often all it took. But now, things have shifted. The market isn’t as forgiving, and many dealerships are struggling to adapt.

Yes, the basics matter, but there’s something deeper at play—a dangerous attitude of indifference. I’ve been in hundreds of dealerships, and what I see today is alarming. It’s like the industry is sleepwalking while the house is burning. Are dealers even paying attention? Are they willing to make the hard changes needed to turn things around?

The Desk: Where Chaos Begins

The desk is the heartbeat of the dealership—the hub where it all starts. But instead of pumping out efficient, profitable deals, it’s often the source of chaos.

Years ago, F&I managers were respected as gatekeepers. They weren’t just handling paperwork; they were protecting the dealership’s assets and managing lender relationships with precision. Fast-forward to today, and much of that responsibility has been dumped on desk managers—all in the name of “speeding up the deal.”

Here’s the catch: no one’s holding these desk managers accountable. Shotgunning deals to lenders without understanding the total cost of sale has become the norm. Sloppy credit applications, careless errors, and a lack of structure are creating a mess that F&I managers are left to clean up.

When deals hit F&I, they’re riddled with issues—missing documents, unchecked details, and no clear process. This disrupts the flow, slows the deal to a crawl, and frustrates customers. It’s a perfect recipe for lost profits and wasted time.

Broken Processes, Broken Performance

Dealers often wonder why F&I performance is lagging, but the answer is staring them in the face: broken processes. When there’s no accountability, every department operates in silos. The result? Indifference creeps into your culture, and mediocrity becomes the standard.

Ask yourself:

Are your desk managers partners with F&I, or are they working against them?
Are they ensuring every cash deal is turned to F&I?
Do they know their lenders, or are they just guessing?
Are they sticking to consistent pencils, or throwing out 84-month terms with no money down as a starting point?

If you’re not checking these things regularly, you’re leaving money on the table. A worksheet is no different from a menu—both need to be precise, consistent, and aligned with a process.

How Chernek Consulting Can Help

At Chernek Consulting , we understand these challenges and provide solutions that work. Our services are designed to address the root of the problem: your dealership’s process and culture.

We offer:

Customized In-House Training tailored to your dealership’s unique needs.
Virtual Training Programs to ensure ongoing education for your team.
AI Champion Roleplay to simulate real-world scenarios and elevate team performance.
Comprehensive Process Audits to identify inefficiencies and areas for improvement.
Desk and F&I Alignment Programs to create a cohesive, results-driven culture.

When you work with Chernek Consulting, you’re not just improving performance—you’re transforming your dealership into a profit powerhouse.

The Cost of Complacency

Here’s the harsh reality: indifference costs you talent. Why would top performers stick around in a dealership that tolerates chaos? Talented people want to work in an environment with structure, accountability, and a commitment to excellence. If you’re not providing that, they’ll find a dealership that does.

I recently asked my F&I Today group what above-average F&I performance should look like. The consensus? It’s not just about numbers; it’s about alignment. The desk and F&I need to operate as one unit, with shared goals and mutual accountability.

Fix the Process, Fix the Culture

Dealers, if you’re serious about turning things around, it’s time to do more than “get back to basics.” You need to fix the root of the problem: your process. A strong, consistent process doesn’t just improve performance—it transforms your culture.

When everyone is on the same page—desk managers, F&I, and sales—you create a dealership that runs like a well-oiled machine. Customers feel the difference. Deals close faster. Profits grow.

At Chernek Consulting, we specialize in helping dealerships implement these changes effectively. The question isn’t whether you can change—it’s whether you will .

Visit Chernek Consulting for more information or call 866-894-1899 to schedule your consultation today. For F&I beginners be sure to sign up for Chernek Consulting Virtual Pro interactive F&I courseware upgrade to AI Champion Roleplay! Contact Becky to find out more details, available for individual users and dealer group levels. We also customize all training content to fit your exact requirements.

Lenders Tightening Up – More Repos!

Fri, 19 Aug 2022 19:32:41 GMT

…time to reinforce basic skills and practices

A few days ago, a dealer friend and I were discussing how much lending practices have changed. They’re not buying as deep as they did six months ago. And repos are on the rise.

According to a recent news story, “A perfect economic storm of inflation, soaring gas prices and the unintended consequences of the federal pandemic relief programs is closing in on many car owners.” And this scenario is affecting prime and subprime customers alike.

The industry is feeling the squeeze. Vehicle pricing is at an all-time high and lenders are tightening deal standards.

More important, a lack of skills and experience at the desk, particularly when it comes to how lenders buy, is negatively impacting sales.

A cautionary tale…

Last week, I was consulting for a fairly large volume store. I start my process by doing a deal analysis, sitting at the sales desk and watching how deals come together. In this store, customers seemed happy and salespeople were busy closing deals.

We know the sales desk is the hub – where profits come together. I see the salesperson take his deal to the desk and tell the sales manager, Joe, that his customer doesn’t have the best credit. It seems the customer had some credit challenges in the past but managed to get caught up. Also, the customer recently started a new job making $5,000 per month, but was an independent contractor for two years prior. He tells Joe he submitted the application.

Joe submits the application to several lenders at face value without verifying the information. He goes back to penciling the worksheet and tells the salesperson to present the numbers to the customer. The salesperson returns to the desk and tells Joe the payments are too high. The customer needs a longer term. Can they give the customer a better rate? With a click of a mouse, Joe extends the term to 76 months, reduces the rate and cuts the payment.

It's a perfect storm about ready to break! Incredibly, it happens all the time.

Joe submits the application to several lenders and runs with the best call. He’s thrilled he got a great lender call and the F&I manager will be as well. The customer is happy they got the payment they wanted and the salesperson is overjoyed. He loves working his deals with Joe!

The salesperson hands the deal to the F&I manager and says, “Here you go, we're selling cars today!” The F&I manager replies, “Just bring the customer into the office and I’ll do my magic!”

Now the F&I manager is ecstatic! He sold a VSC, maintenance and GAP! All is going as planned until the F&I manager finally shuffles through the paperwork, including the call back, to be sure he has everything needed for funding.

He notices on the callback there’s a stip for Proof of Income! Of course, he immediately asks the customer for proof of income, only to find out the customer started his new job three days ago! His 1099 will only prove a net total earning of $1,500 per month since he wrote off all his expenses for tax purposes. Everything comes to a screeching halt! The happy situation is about to go sideways.

As it turned out, Joe was able to put the deal together, but not after cutting all the F&I products and $750 off the front. The F&I manager was able to get on the phone and work the deal with another lender that didn’t require proof of income.

There are two lessons here.

First, F&I needs to get involved early, meeting the customer on their terms at the salesperson desk. The F&I manager reviews the application to ensure it’s accurate and determines the reasons behind the slow pay history for a better lender approval.

F&I’s job is to protect the dealership assets. Sales and F&I must work in unison; it’s a team effort. Two heads are always better than one.

Second, know your lenders inside and out. A lender relationship is worth its weight in gold. Lender management is probably the most eroded skill set in the sales and F&I space today.

Many desk managers simply don’t know how their lenders buy. They don’t have a full grasp of the guidelines and may glaze over the LTV, not to mention what credit bureaus the lender uses to make a buying decision. They vary.

Lender reps don’t help matters, insisting the dealer submit the application no matter what – they don’t have a look to book! It’s as though the lenders prefer to keep the dealer in the dark, which likely costs dealers a fortune! In many cases, the manager doesn’t know the lender guidelines, is short-sighted and simply takes the best call and runs with it.

Asking for additional money down or putting an extra $200 on the trade can make a world of difference between getting a conditional approval or a 100% approval with a great rate and term! It happens all the time.

So build better relationships! Get on the phone, call the lender, ask for more – three months, two months or one month in term! Keep asking!

The excuse I hear today is that lenders don’t rehash because they all use internal scoring. Guess what? Ford Motor Credit had internal scoring 20 years ago, but that didn’t stop us from calling them back and asking for more.

Both of these processes – meeting customers early at the desk and lender management –cut time off each transaction, boost customer satisfaction and plug profit leaks.

Brush off the fairy dust

Managers, get back in the saddle and brush off the fairy dust, it’s time to get back to the real world! Work every deal. Cherry-picking deals won’t win you prizes and grow your loyal customer base!

Get your documentation in order. Understand the rules of engagement – and why dotting your i’s and crossing your t’s puts more deals on the books. Get involved earlier in the process and validate the application.

Make sure the customer is on the right vehicle they qualify for the first time. And know your lenders so you can capitalize on every deal!

Coming in the next newsletter…

Did you know online lenders offer vehicle owners refinancing options, as do some insurance companies? These online providers can help cut back on the repos. Great for the consumer, but should auto dealers be alarmed? Chargebacks are on the rise; how can auto dealers make a difference?

Don’t miss my webinar on this trending topic

– Refinancing Made Easy for Auto Dealers!

Chernek – with over 30 years in automotive retail and highly regarded for superior F&I consultation – now offers dealers the flexibility to streamline the refinancing process for the first time ever! Take back control! Keep your customers captive, reduce chargebacks, and sell more cars and products too! Be sure to attend the upcoming webinar, “Refinancing Make Sense for Auto Dealers” on August 17th at 1:00 PM EST.

For more details, visit _________.

______________________________________________________________________________

Schedule a 15-minute Zoom call today!

Unparalleled Experience + Analytics + Gold-Standard Training = IMPACT

Chernek Consulting, founded in 2001, offers automotive dealers exceptional experience-based consultation for multipoint, multi-brand automotive groups to significantly impact performance. Rebecca Chernek has worked with industry leaders such as JM&A, AutoNation, NCM Institute, NCM 20 Groups, NADA 20 Groups, Mercedes Benz Financial Services, Sym-Tech Dealers Services and more.

Rebecca’s comprehensive analysis identifies operational and team strengths and weaknesses. Her focus is on:

1) plugging profit leaks

2) getting the customer on the right car at the get-go

3) cultivating customers for life

4) digitizing processes for maximum efficiency and profit

It’s the little things you do that can make a big difference.

Rebecca gets the entire team on the same page, implementing processes that:

· Meet customers on their terms – online to in-dealership,

· Finalize the transaction in the F&I office with a single-point sales associate, hybrid or a dedicated F&I manager,

· Get the paper off the floor – digitizing the entire workflow, making it easier and faster for the customer to buy a car.

· Get the transaction right the first time out, improving customer satisfaction.

Remove the obstacles to selling more cars – and achieving higher performance on cash, lease and finance transactions!

In addition to onsite consultation, Becky provides continuing education via her F&I On-Demand Virtual Pro platform, with optional video critiques and F&I manager performance monitoring. F&I On-Demand Virtual Pro topics include:

§ Digital Retailing/Online to In-Dealership

§ Digital Menu/eContracting RouteOne/Dealertrack

§ Product Sales/Product Knowledge

§ Compliance

§ Online Presentation/Offsite Delivery

§ Desking Practices/Presentations

§ Single-point/Hybrid F&I Approach

§ Funding/CIT

§ Lender Relationship/Rehash

§ Pay Plans

§ Process Implementation

CONTACT BECKY CHERNEK TODAY! Ready to take your F&I department to greater heights! CALL OUR F&I SERVICES!

Is Brooming Customers Another Covid Side Effect?

Fri, 19 Aug 2022 19:17:36 GMT

Why every customer matters today!

Recently I’ve experienced a strange déjà vu when providing onsite consultations. I’m reminded of a time when I was working with a dealer in Arkansas who purchased a Buick / GMC store. He told me there wasn’t much meat on the bone and not to expect much in F&I performance. Most customers paid cash or had prime credit.

“No problem,” I thought. After all, I can positively impact any operation. But I couldn’t help wonder why the dealer didn’t get any tier three or four business. The customers at dealerships up the street seemed to represent a full cross section of buyers. It didn’t make sense.

I continued to ask questions until the dealer came up with a brilliant idea (or he got tired of my harping). He decided to spiff the sales people one weekend $40.00 per write-up. “Just come to the desk with whatever write-up, no matter the credit, and you’ll get $40.00.” The following Monday, the dealer called to report he had plenty of tier three and four customers.

If you’re reading between the lines, you already know where I’m going. The store didn’t have any subprime lenders – or the F&I manager wasn’t keen on working subprime customers. The salespeople thought, “Why bother selling a customer a car if they said they had slow or derogatory credit history?” So they broomed the customer, sent them packing to the competitor down the street and moved to the next customer who could buy a car.

Is this you? Be honest. Because this is exactly what is happening in dealerships throughout the United States today. This is the dark side of the pandemic’s silver lining for auto retail.

The front is making big profits on preowned cars today. They don’t have to take the skinny deals or cut profit to swallow a lender fee. Those vehicles aren’t easy to come by, so they’re being saved for the customer who’s going to pay all the profit. Who can blame them?

But will it pay off in the long run? Are you sending customers to your competitor, CarMax, Carvana, Vroom or independent dealers who are lining their pockets with the deals you don’t want? The sales manager may not see the value in a lower-tier customer today, but your competition does. Because when you treat a customer with slow pay history right, you have a customer for life.

What about the customer who just paid full gross? Will they use your service department? Does it matter? That’s a discussion for another day.

You may not realize it, but many of the larger dealer groups have their own in-house financing with internal scoring metrics. They’re not only going to sell more cars; they’ll earn more profit doing it. They will take the market share if you don’t do something about it.

Some say, “Ok, let them,” but remember when CarMax offered to put an appraisal on every trade whether the customer was going to buy a car from them or not? Talk about clever! Today, customers go to CarMax to get a trade value even before they step foot in a dealership. In fact, your sales manager likely sends the customer to CarMax to get a trade value! Is that you?

Today’s most successful dealers aren’t fixed in their ways. They have a growth mindset and continually adapt to the changing market!

This bubble won’t last forever. Do you have the necessary skill-set and processes in place today to meet market conditions tomorrow?

Schedule a 15-minute Zoom call today!

Unparalleled Experience + Analytics + Gold-Standard Training = IMPACT

Chernek Consulting, founded in 2001, offers automotive dealers exceptional experience-based consultation for multipoint, multi-brand automotive groups to significantly impact performance . Rebecca Chernek has worked with industry leaders such as JM&A, AutoNation, NCM Institute, NCM 20 Groups, NADA 20 Groups, Mercedes Benz Financial Services, Sym-Tech Dealers Services and more.

Rebecca’s comprehensive analysis identifies operational and team strengths and weaknesses. Her focus is on:

1) plugging profit leaks

2) getting the customer on the right car at the get-go

3) cultivating customers for life

4) digitizing processes for maximum efficiency and profit

It’s the little things you do that can make a big difference.

CALL BECKY CHERNEK DIRECT AT 866-894-1899 schedule a 15 - minute call today!

MAKE PROFITS IN DOWN MARKET - Engaging Earlier Drives Performance!

Fri, 19 Aug 2022 00:00:00 GMT

Here’s How To Get Sales, Finance Teams Working Together

By Rebecca Chernek

Remember the old days? Selling a vehicle of just about any brand, color, or size was possible, and with little effort.

It didn’t matter if your dealership had a strong or a weak desk operation, as long as you had a strong closer in the “box.” It didn’t matter if your customers were on the right car with the wrong payment or the wrong car with an okay payment.

The aim of your sales staff was to throw them into the box and have your closer work whatever magic was necessary to seal the deal.

Times have changed. Today, that attitude is obsolete, unprofessional, and a guarantee for failure.

Your sales manager needs updated training to ensure every member of your sales staff is on the same page as those in the finance department, and those in the finance department need updated training in how to sell in modern times.

The new system requires that every staffer properly assess every customer. That includes a well-qualified, above-board interview to ascertain suitable vehicle choice, considering needs and budget restraints.

Profit is still the primary goal. You want your staff to systematically sell cars while earning a profit on both the front- and back end, while also managing a healthy reinsurance portfolio.

Yes, your dealership can still make profit in a down market, but not in the same way.

With credit tight, those working the desk must manage and negotiate every transaction before it ever gets into finance. This means your sales manager should have some finance experience. No longer can he or she quote payments and terms that don’t exist just to bury the deal in finance.

It amazes me how many desk managers lack effective standards and procedures.

Your dealership will improve operations by following these desking guidelines:

Meeting and greeting: Greeting customers in the right way builds rapport. Proficiency comes through training and an in-place curriculum that is managed on a daily basis, without haphazard techniques left to the imagination.

Qualifying customers: Sales personnel must be trained in how to do this in a meaningful interview. What brought the customers to the dealership? Did they see your ad in the paper or online?

Have they purchased previous vehicles from you? Will they be trading a vehicle or making a new purchase? Was their current vehicle financed, with whom and for how long? How will the new vehicle be used?

Are all the decision makers present, or is this is an information day only? Where does the customer live and what do they do for a living? Are they currently employed? Are they on a budget?

The answers provide valuable information and avoid the problems that occur when customers prematurely select vehicles they can’t really afford.

Show me the numbers: In today’s market, playing games with customers is risky business. Here’s a proper upfront desking procedure:

Present a worksheet as though it were a “menu.” Keep pricing consistent. Don’t prejudge customers. Perform that credit check.

Value-price the vehicle with all the numbers, fair market for the trade-in, 20% down and range payments that are figured using an average rate and terms.

When discussing rate, say, “We use an average interest rate until we review your credit score and payback history.”

Say, “Based on the terms we’ve prepared, what works best for you?” Let the customer tell you how to sell to them. Listen to your customer response. Be clear and concise.

Ensure the customer will qualify at the agreed-upon payment for the right vehicle, before sending the sale into finance.

The bottom line: A sales manager without proper desking skills can cause havoc in front-end profit and back-end performance. Success comes when sales and finance work together, using a practicable, consistent desking system.

F&I trainer Rebecca Chernek is CEO of Chernek Consulting, LLC. She can be reached at 866-894-1899 and becky@chernekconsulting.com

KNOW WHAT PRODUCTS TO OFFER

Thu, 18 Aug 2022 00:00:00 GMT

A laundry list of products won't add more profits to the books, it will only confuse your customers!

By Rebecca Chernek

U.K. Prime Minister Harold, no stranger to recessions, said, “The only human institution that rejects progress is the cemetery.”

Those who were involved in our industry during the 1960s know that it was Pat Ryan, described by some as the father of finance and insurance as a designated dealership entity, who brought us out of the Dark Ages.

At only the age of 26, he introduced the idea that dealers should not only offer consumers financing arrangements at the time of sale, but other benefits as well, benefits such as credit, life and disability insurance and service contracts.

Within four years, his idea had grown into a $15 million business. By the end of the 1980s, Ryan had acquired or merged with other companies and, together, his newly formed Aon Corp. had 28,000 employees and was worth a few billion of dollars. By 2004, Aon employed 53,000 people, with 600 offices in more than 120 countries.

“There is only one way to do business — the right way, Ryan once said, referring to high levels of integrity and morality.

When Ryan introduced his revolutionary idea to those in our industry, it was not without detractors. In time, his proposal was accepted enthusiastically, because it offered dealers the opportunity to generate additional back-end profit through the sale of F&I products.

It also allowed them to take advantage of reinsurance profits. Most dealers benefited handsomely from this system and can do so again. But increasing profits through the sale of products must be tempered with building customer trust and loyalty through “…the highest levels of integrity in a highly principled, highly moral and highly ethical manner.”

Today, dealers have a long list of products to offer consumers: service contract, maintenance, tire and wheel, etch, key replacement, paint and fabric protection, GPS, Lo-Jack, dent-ding, diamond fusion, lease wear and tear, gap, unemployment insurance, credit life/disability, tires for life, engines for life. The list goes on.

Obviously, products are the driver to a profitable finance department. But, in today’s business climate, exactly which products bring the most value to the consumer, while creating wealth for the dealer?

What is the most effective and efficient way to present them? Why shouldn’t every value-added product available to the consumer be offered? Which products for specific dealers make the most sense?

Which products should be offered every time and with every customer, because they deliver the greatest impact to the dealer’s bottom line? The answers to these questions influence the end result. So is understanding that offering an endless litany of products in the finance department does not always lead to profits.

Now let’s talk about you and your dealership. Before you make any decisions regarding which of the wide variety of products to offer your customers, you need to put your primary goal on paper.

This gets you to think about it. And seeing it in black and white ensures you recognize the reality of your current situation. Is your goal simply to offer whichever products will bring in the most back-end profits?

Or is it to increase back-end profits while building a successful reinsurance portfolio? Or something else? Unless you commit to putting your primary goal in writing, you will not know what needs to be changed and why.

Once you know your goal, ask yourself another series of questions.

Begin with an assessment of all the products available to you. Is this the best product of its kind and at the right price?

Do I have complete trust in the product company? What are my product partner’s expectations and can I meet them? Can they meet mine? Can I fully support the product and its value for my customers? What are the negatives, if any? Will my F&I manager agree with my assessment and be enthusiastic about offering the product to my customers?

Ironically, few dealers ask their F&I managers if they believe the offered products on their menu have intrinsic value over other similar products.

Why is this necessary? Unless they can wholeheartedly support the product, they will be unsuccessful in not only presenting the product but in overcoming customer objections.

The only way to know for sure if a product should be on your menu is to make product comparisons and conduct thorough research. Especially in today’s market climate, every dime a consumer spends must have proven value.

Presenting your menu with a long list of products will seldom increase products sold. It will, however, confuse the customer and diminish their interest in buying any!

Today’s more savvy and cautious vehicle buyers are looking for the best quality, the lowest price, and the best terms on everything. Dealers must be prepared to answer their every question candidly, convincingly, and conscientiously.

F&I trainer Rebecca Chernek is CEO of Chernek Consulting, LLC. She can be reached at 866-894-1899 or email Becky at becky@chernekconsulting.com

WINNING WITH MENU SELLING!

Wed, 17 Aug 2022 00:00:00 GMT

Winning With Menu Selling - Paper or Digital?

Your menu — digital or paper — is one of your most important assets in the finance office. It is also one of the most important ways for you to stay compliant in a highly litigious society. But is the menu you present up to snuff, are you putting your best foot forward? And, on the flip side, do you have so much on it — so many products— that the customer gets confused, shuts down and just wants out?

Is your menu outdated, getting the results you want? Are you running less than $1200 per car?

Maybe your menu needs a bit of a spring cleaning! An efficient menu offers the options that a client might — and should — be interested in without overwhelming them. Now, you might say “How can a customer know what they want unless we present everything including the kitchen sink?” And, that is a valid question. But I often advise my clients to remember when they go to a restaurant with several well-chosen entree options. The customer has enough time to evaluate, ask questions and consider add-ons such as dessert and wine.

Then, have you ever been to a restaurant where the menu was a small book, with several pages of every sort of entree imaginable? I love Cheesecake Factory but my head explodes! I can’t make up my mind. Our brains just can’t — especially on the spot — consume so much information.

We don’t want to make all those decisions. Customers want ease in shopping. They want to get in and out of the F&I department and certainly don’t want to be in a dealership all day buying a car. You have minutes to gain their trust and confidence with your menu presentation. That’s why an overstuffed menu will diminish your profits. That’s right —profits! A menu with the right amount of products will entice a customer to learn more, see the value and buy from you.

A simple, to-the-point menu helps eliminate pressure selling tactics, reduces chargebacks, speeds the delivery and increases CSI. It builds trust.

A user-friendly menu allows you to meet the customer on their terms where you can establish a common bond, fully disclosing terms, product options, and itemized product pricing. It reduces the time in the F&I office. Step selling doesn’t work; it’s torture. It can take up to an hour, diminished profits and, in some instances, lead to payment packing. The FTC is coming down hard on dealers for deceptive practices. The menu is your best arsenal to ensure that best practices are being implemented and the customer truly understands all the terms of the sale. You leave nothing to chance.

If you use a digital menu, your F&I managers must be properly trained. You can’t put an iPad in the customer’s hand and say, “Enjoy!” It is an event, a digital journey from the time the F&I manager meets the customer to the final menu presentation. A digital menu works best when it’s fully utilized, is interactive and the customer feels as if they are in control of the buying experience.

Meet with your F&I manager and review the menu in detail. Like spring cleaning, freshen it up — take the clutter off. Change your ribbon add color to your menu! Throw out products that are no longer sellable. Put the top products front and center. Remember if your F&I manager doesn’t buy into them, what makes you think they will present them? Buy-in creates a consistent menu and a consistent menu presentation guarantees you results.

Check out Chernek Consulting’s upcoming workshop on November 6th, 7th & 8th in Alpharetta, GA at the DoubleTree Hilton Properties. We’ll cover everything you need to know to present an efficient, impactful menu presentation and how effectively overcome objections! The workshop is designed for the beginner or advanced student. Learn how to present a paper menu or a digital menu and the importance behind the interview process. Understand the difference between a paper menu presentation versus a digital menu presentation to get the impact you're looking for.

If you're considering a digital menu, this workshop is a must for you! Learn the pros and cons to an effective digital menu presentation. Learn how to take a ‘no’ response and turn it into a ‘yes’. Find out how to meet customer specific needs based on a value proposition and why a compliant menu creates a paper trail that will keep you out of hot water.

Get back to the basics and massively improve your F&I performance. Rebecca Chernek has been facilitating The Customer Centric – Closing Tools Mastering Menu Sales — since 2001 with remarkable results. The tools your F&I manager picks up from this workshop will dramatically impact their success once back at the dealership.

WORKING YOU OR THE MENU?

Mon, 15 Aug 2022 00:00:00 GMT

WORKING YOU OR THE MENU?

by Rebecca D. Chernek

Ask if you’re on the Menu and you’ll be told, “I’m on the Menu”! As a Finance & Insurance Consultant on Menu Selling I have reviewed countless Menu systems and I have s …

info@chernekconsulting.com

TREAT THEM AS INDIVIDUALS

Wed, 10 Aug 2022 00:00:00 GMT

Effective Closes Are Based On Effective Rationale

By Rebecca Chernek

No two snowflakes are exactly alike. The fingerprints of no two people are alike. The customers who step onto your lot are not exactly alike either. So why are you still treating them as though they were?

Perhaps you’re not capturing more product sales for this very reason. Effective closes are based on effective rationale, and the underlying principal of selling to all of your unique customers is to first get to know them and then sell to only their needs with an individualized presentation.

Not only has the car- and product-selling environment changed over recent years, so have your customers.

What you did years ago — and even last year — to obtain the sale no longer works as efficiently.

If you were to approach your customers sporting a 1970s-style mutton sideburns and wearing bell-bottom slacks, you wouldn’t be taken seriously.

If you were to approach your customers as though they had just won the state lottery, they would turn on their heels and run.

If you still take your customers to your office, shut the door, and force-feed them memorized hard-sell lines, such as “You need all these products and I’ll tell you why,” you’ll only succeed in losing the sale altogether.

These days, most customers come to you well prepared. They know what they want and why and how much they can afford to spend. They’ve become product savvy through hours of online investigation.

What should you do? Research the same online sites they do. See what they’re reading. Learn everything they do. Know why your products are equal or better and why buying from your store is better.

Think about how you can present this information without being a pushy know-it-all salesperson; the kind most buyers dread.

Then, greet all your customers at the sales personnel desk with friendly and unhurried interest. This is the time and place to review their information.

Verify the transaction details, without interrogating them with rapid-fire questions. Be engaging and unscripted. Establish a friendly rapport while learning about your customers’ buying habits and perceived needs.

Don’t assume anything. Encourage them to talk and then listen! Without solid information, it’s difficult to effectively overcome objections.

You are accustomed to beginning a memorized product pitch the second your buyer is seated. After a year of slow sales, you are even more eager to squeeze it all in.

Your customers, however, are counting their pennies. They’ve had a rough year, too. They must never feel that you are trying to sell them things they don’t need or want.

Present your products confidently, but with heightened decorum. It shouldn’t pain you to hear any customer say, “No, I’ll stick with the base payment.” This happens at least 50% of the time. That response should never persuade you to close the deal.

This is the time to quietly state that certain products bring beneficial value and not taking advantage of the opportunity to add them to the base price could negatively impact their circumstances in the future.

So, ask for the reason the products are being rejected. The cost? The packaging? Simply not interested? Don’t assume anything. Know your subject matter.

Never ask a question without having the answer. If your customer says he plans to put on 15,000 miles a year and keep the vehicle until the wheels fall off, it makes sense to ask why he’s not taking advantage of a service contract.

You already know his answer. It costs too much. The best way to overcome such objections is to match them with a proper response, a logical one.

Today’s customers can adapt to a higher payment, but not to surprises. Win them over through effective closes based on an easy-to-understand rationale for each product presented. They will buy, thank you and return next time.

F&I trainer Rebecca Chernek is CEO of Chernek Consulting, LLC. She can be reached at 866-894-1899 and becky@chernekconsulting.com

CALLING ALL OSTRICHES

Wed, 10 Aug 2022 00:00:00 GMT

Debunking Head-In-Sand Myth, But Facing Facts Of F&I

By Rebecca Chernek

It’s a myth that an ostrich buries its head in the sand. It merely seems like it when viewed from a distance.

The ostrich is really digging a hole in which to lay its head and long neck flat, in an attempt to disguise itself like a mound of sand when it can’t outrun its enemy.

I’ve concluded too many of today’s finance and insurance managers are digging themselves holes. Not to hide from customers, but to bury their training manuals and all they’ve learned in workshop sessions.

I recently held an advanced workshop on the steps required to make a sale in F&I. It had a prerequisite: managers must have attended a 3-day workshop on menu selling principles.

Within an hour, I realized most attendees had completely forgotten the previously taught material. How was this possible? I had to assume they had buried the training manual in a drawer the minute they returned to the dealership.

Few had implemented the methods they had learned and few cared enough to find the manual and bring it to the advanced training session.

They thought they knew it all, and were disinclined to change course. Unlike the ostrich, who knows when it’s better to hide in the sand, rather than trying to outrun its enemy, they preferred to stick to the old ways that have serious drawbacks.

Let’s review some F&I strategies and issues.

The Interview

I strongly support the pre-sales interview. In training sessions, no one is allowed to leave the room when I’m covering the interview process. One manager admitted he had told his dealer I didn’t cover the subject. I was miffed. Even if he had skipped out of the session, the material was in his manual! Had he ripped out the pages marked “Interview”? Obviously, he hadn’t instituted a single thing we’d discussed.

Dealers and finance managers complain that sales are off and profits sliding downward faster than an Olympic luge. Yet far too many of them ignore using their past training and don’t require follow-ups instruction.

Some who’ve attended training workshops say the problem with their personal failure belongs with the facilitator who couldn’t hold their attention long enough for them to learn anything. This may occasionally be true.

A good workshop provides several easy, practical and effective steps to increase sales and profits. In order to see results in their dealership profits, however, attendees must change their attitudes and implement the proven methods.

Implementing Changes

If you attend a training workshop, your time will be wasted and money misspent, if you don’t implement the suggested changes.

If your doctor tells you to lose weight or you’ll suffer dire consequences, you’ll heed his advice. It would be foolish to do otherwise.

If your golf instructor gives you three hints on how to drastically improve the swing, you’ll practice until you have mastered it. You believe practice makes perfect.

The same holds true of F&I training. If you ignore the material provided, you shouldn’t be surprised to find that nothing changes in your dealership.

Worn-out and ineffective procedures won’t magically produce galloping profits. Do you wonder why you can’t increase your per-vehicle-retailed or product index performance? Do you wonder why you have poor customer satisfaction scores?

How can you show the value of your products if you can’t accurately describe them? How long has it been since you thoroughly read your product agreements or your finance and lease agreements? When was the last time you sat with your bankers?

Some ineffective F&I staffers aren’t fully knowledgeable about products, but still endorse them. They can’t show value, so they discount. When nothing works, they blame the economy.

Compliance

Compliance is not a dirty word. Several F&I managers have told me the industry has made too much of this “compliance thing.”

They know of no one who has gone to jail for deceptive practices. Of course these are the same managers who complain about reduced sales and profits and the loss of a significant number of customers.

Their dealerships may not have been fined for lack of compliance — yet. But they shouldn’t assume their customers haven’t figured it out and are staying away.

Thanks to sales tactics, they are on extended terms and buried beneath thousands of dollars with no hope in sight. Where are the car deals? The deals are sitting in driveways across the nation.

Sixty percent of your customers are buried in debt and the banks are no longer helping you with those high advances. So what do you do now?

Some of you thought those 84-month term deals were great. And you took advantage of those outdated customer-packing payments, and hid terms and rates. This practice is not only deceptive, it’s stealing.

Why have you had to resort to outdated and deceptive methods to achieve sales? Because you don’t know how to be upfront and sell the value of products. Once credibility is lost, it’s seldom regained. That’s a risk no dealership should take.

Keep Learning

Education doesn’t come only from a college classroom. Dealership sales education is available in training workshops that specialize in the subject matter.

It’s not too late to learn fresh sales techniques for menu selling of your products, to gain a more understanding of why the customer interview is vital before beginning the process, or to understand why compliance is essential.

It’s no secret that the automotive industry is changing rapidly. Online virtual dealerships are gaining ground and may soon be commonplace.

They offer your customers “truth” and “compliance” and use various means to f win them over. They describe your menu products in detail and offer “fair” and “competitive” prices.

What can you do? Take steps to understand their methods and motivation and then produce an even better system for attracting and keeping well-satisfied customers.

Don’t become an ostrich and bury your training manual. Don’t ignore the effects of changing times.

Although an ostrich prefers to run away, it has powerful legs and can kill a lion with one swift kick.

Kick your decreasing sales and profit problems by confronting them. Keep learning and then put into action what you learned.

F&I trainer Rebecca Chernek is CEO of Chernek Consulting, LLC. She can be reached at 404-276-4026 and chernekconsulting@earthlink.net .

F&I TRAINING - Overcoming Objections - It's About People!

Mon, 08 Aug 2022 00:00:00 GMT

F&I Training - Overcoming Objections is it a thing of the past, is it a lost art?

Some trainers say using word tracks may turn off customers! If you’re using outdated closing techniques, perhaps, the customer will cringe and likely back up on you! “Always be closing” has been relegated to the movie history in Glengarry Glen Ross. Customers have become more sophisticated due to the information highway "the internet." Customers don't want to be pressured into buying products. It has to be about them not you!

But this doesn’t mean you throw out using closing tactics. It means closing tactics must evolve and be absolutely relevant to the customer’s needs based on what they tell you! Listen for the clues. Be mindful that the products you are offering are a value-driven proposition, it's just not about a paycheck. That evolution comes through better F&I training, F&I training that throws out all conventional tactics on closing. You have to feel natural in your presentation efforts. Be confident in what you are sharing with the customer you never want to sound robotic.

Overcoming the objection based on the customer's needs is not something that's pulled from thin air. You have to spend more time listening than speaking. You have to listen to what the customer tells you in order to handle the objection and answer their question. Be on point be a professional.

F&I coaching will help you to establish solid word tracks that address the customer concerns it never sounds scripted! You are interactive and assured of your responses.

Check out Chernek On-Demand! It includes all the F&I Fundamentals, study your word tracks and upgrade to Rehearsal and reach your highest potential today. The training is affordable and worthwhile it includes an "Ask Becky" feature, who else does that?

Contact Becky directly at 866-894-1899 and book an in-dealership training and get all your managers on the same page!

Is overcoming objections a lost art, a thing of the past? Effective closes that get to the heart of the customer concerns matter the most. F&I Training is essential to learn the basic requirements behind how to properly overcome the customer objections without tearing down walls.

IT’S REALLY NOT SO FAR-FETCHED - Virtual F&I

Fri, 05 Aug 2022 00:00:00 GMT

Virtual Dealerships Could Be New Way To Sell, Finance Cars

By Rebecca Chernek

Ward’s Dealer Business, Jan 1, 2010 12:00 PM

Virtual worlds are popping up all over the Internet and it is entirely feasible to sell cars and provide financing options and products to online users.

Already, many of your customers shop the Internet for the best deals before ever stepping foot on a car lot. Many search cyberspace for the best deals on the products usually sold by your finance manager using a menu.

A virtual dealership could provide you with customers who make use of the Internet at night when they have the most time to search for new vehicles.

They like the ease of comparison shopping while in the comfort of their homes. Now is the time for you to take a serious look at how you can change your way of reaching and keeping every customer.

Check out virtual worlds, which is one of the fastest growing free networking communities in the world. Already, sites such as this offer in-world 3-D classroom education through systems from some of the largest and most highly rated universities, including Harvard, Princeton and Stanford.

Several corporations also offer in-world hiring and workshops. Several million individuals from a variety of professions worldwide enter into other worlds with the clear objective of finding new ways to conduct business.

The online experience can be extremely lucrative for the forward-thinking dealer, not only for selling cars, arranging financing and offering a variety of products, but for other services, such as online scheduling of routine vehicle maintenance check-ups.

With a click of a mouse, you would invite each customer to experience a 3-D showing of all the vehicles on your lot. They would be able to chat directly with your sales associate and, at the same time, negotiate the terms of the sale without even driving to your dealership.

The process takes place through your dealer avatar (model/prototype). Once the vehicle selection has taken place, the customer meets your business manager, another avatar who begins to finalize the sale at the online sales desk. The process is no different from the one used if the customer were at the dealership.

The customer is then presented the buyer’s agreement, to ensure the registration information and pertinent buying numbers are correct. The applicable information is viewed on screen by the customer, and each step of the way a checkpoint is set up for proper disclosures.

Once a customer agrees to the vehicle purchase, the business manager reviews and submits the loan application.

The beauty of doing virtual selling is that everything can be time-stamped for process assurance to guarantee the negotiation is compliant.

So, with safeguards in place, your business manager reviews the credit application in its entirety and communicates with the customer to verify all the information for accuracy. If the process includes Dealer Track or Route One, the transaction is easily punched in and an approval is imminent.

If the virtual process is properly set up, your business manager will have no trouble qualifying customers for product sales, after the completion of menu presentation.

A virtual dealership is not a fantasy. It is a very real probability. If you are hesitant or not quite ready to visualize your shop as a virtual world shopping experience for your customers, then I suggest you make every effort to ensure your business manager is tied directly to your Internet manager and customers are given a direct link into the office.

Your business manager must be involved earlier in the sale, especially with Internet customers. Just because the customer is out of the dealership doesn’t mean finance isn’t involved in the transaction.

Internet sales can and will mean big business to dealers who know how to utilize this vast technology.

I remember when we first initiated menu selling. Non-believers said it wouldn’t work. It’s now an industry standard. Virtual selling is here. Welcome it with open arms.

F&I trainer Rebecca Chernek is CEO of Chernek Consulting, LLC. She can be reached at 866-894-1899 and becky@chernekconsulting.com

F&I Is Not The Problem - Done Deal Response!

Wed, 03 Aug 2022 00:00:00 GMT

In response to Greg Arroyo article from F&I Management Technology. I’ve been singing in the same chorus, but it seems that other members are either staying home or remaining silent. Both reasons denote an underlying sense of fear or helplessness or ignorance of the real issues. It’s hard to change “old ways” but not impossible. Change is good.

However, too many F&I managers are still being lumped into the same crock of criticism; some deserve to be there, but many more don’t. The dealership F&I department is here to stay, regardless of what the proponents of iPhone or iPad menu selling are saying. Nothing replaces face-to-face communication. Especially when everyone in the dealership understands the meaning of communication. It’s 50% talking, but 50% listening. Each customer has individual problems and needs and circumstances. Car sellers and buyers aren’t clones.

Customers who are met with a genuine smile and a warm handshake, from sales and finance personnel who love their jobs and thoroughly enjoy solving their customers’ problems, can tell the difference. Selling begins with building rapport. Trust and satisfaction follow. The primary factors in selling from a menu of offerings is transparency, honesty, and compliance. But how we transition to be more accessible and competitive in dealership menu offerings needs candid and thorough discussion. Dealership personnel need training!

F&I managers aren’t the only ones with knowledge of car and menu options anymore. Anyone with reasonable skill in online searches can find information. Dealers need to emphasize the personal aspect of their customers relationships and take a more proactive role in educating and training their staff. All of them, so they’re all on the same page regardless of work days or shifts.

Some dealers have crossed over to a hybrid F&I manager in order to generate a more effective transition from sales to finance in the anticipation of increasing their sales and profits. Some are successful. Some are learning they personally don’t have the know-how to create this type of sales environment. It takes time.

It reminds me of the Saturn days. The Saturn sales method challenged dealers and their staff and everyone else in the auto industry. Most were scoffers. “It won’t work. No one in his right mind would pay full retail for a car with full knowing of doing so.” Saturn was a game changer for these skeptics. Transparency demonstrated it was not only possible to sell cars at full sticker price, the customers loved it! They were being treated like adults, not like cattle being led to slaughter. Transparency went against anything we were ever taught in the business. Far too many still don’t “get it.”

So, Greg . . . I agree. It’s not the finance department. It’s the bridge between the sales and the finance departments that’s in need of repair. The sale and compliance begin in the minute the customer walks on the lot. When a buying customer is respectfully and carefully walked through the completed purchase agreement, when all the numbers are accurately disclosed and fully discussed, when all the customer’s questions have been truthfully answered by both the sales and finance managers, then perhaps an I-Pad transaction will work. It’s a long time coming. Online buyers aren’t thinking of the details and how they will effect their budgets.

Compare online car buying to reading a book on an eReader versus holding one in your hands. As a book owner, you can underline meaningful text, dog-ears favorite pages, read and reread and share loved passages with family or friends. Limiting yourself to an eReader version means you’re reading only for plot. The formatting itself is replete with errors, you lack any easy way of highlighting favorite passages, and you find the vast majority of books choices are by first-time authors of nonedited manuscripts. It’s a novelty experience that soon loses its luster, its credibility, and its value.

Dealership owners and their F&I managers need to read and study the iPhone menu selling methodology and compare the good and the bad with what they offer their community customers. Any comparison begins with a thorough vetting of their sales transparency and compliance. Unless they have it or are willing to learn everything about it and ensure every single member of their team practices it, they will find it increasingly difficult to compete against the iPad, video, or other menu-selling gadget.

The bottom line? Will an iPad customer become a satisfied, long term customer. One you know and who knows you on a first-name basis.

Chernek Consulting Virtual Pro - Dynamic Interactive On-Demand F&I Training Platform

Tue, 02 Aug 2022 00:00:00 GMT

Chernek Consulting Virtual Pro On-Demand go 24/7 is designed for the beginner or advanced student.

A ll the F&I Fundamentals to Get You Started On a Career in Finance and Insurance. It's the little things that make the biggest impact comes with certification upon successful completion of the courseware and a "Ask Becky" feature to address any questions you may have during training. Includes monitoring tools for managers and agents alike! Upgrade to Rehearsal and get the biggest impact for your training dollar!

F&I Online Training offers interactive online training 24/7 on your time! Increase your earning potential get the promotion you dreamed about. All the secrets to a successful career in Finance & Insurance. Courseware comes with certification after completion. Founded Chernek Consulting, LLC over 18 years with excellent testimonials.

GOING PAPERLESS WITH E-CONTRACTING

Mon, 01 Aug 2022 00:00:00 GMT

Going Paperless With E-Contracting

By Rebecca D. Chernek

Electronic contracting promises less paperwork and faster funding for dealers and lenders. But both groups are slow to embrace

BUILDING RAPPORT WITH THE SALES TEAM

Mon, 01 Aug 2022 00:00:00 GMT

Building Rapport with the Sales Team

By Rebecca D. Chernek

Successful F&I managers remember their roots – often in the sales department – and foster a relationship with sales personnel to achieve … Read More.

Learning New Strategies and Techniques

Mon, 01 Aug 2022 00:00:00 GMT

May 1, 2002

When you think you’ve seen it all in this business that’s the time to pack it in. I’ve worked in automotive retailing practically my whole adult life. I wouldn’t want it any other w …

info@chernekconsulting.com

Toyota Dealers Endorses Single-Point Sales Approach

Fri, 29 Jul 2022 00:00:00 GMT

For most dealers nationwide, a one-pricing sales strategy is a tough concept to accept. To even suggest that their sales staff should be given the authority to finalize every transaction at their desks and include the menu presentation without sending any customer into “the box” is heart-stopping for them. What about banning the F&I office altogether?

Naysayers will tell you it can’t be done. You have to lock down customers in the traditional F&I office in order to sell money-making products that earn profits. No sales person can possibly sell the car and aftermarket products as well!

Well, one dealer I know is doing just that and very successfully. During these tough economic times, Colonial Toyota in Milford, CT, made a critical decision. The dealer chose to ban the F&I office and let his sales staff take charge of every transaction from beginning to end. He gave them all the title of “sales manager.” I applaud Colonial Toyota for realizing that today’s customers have changed and they needed to initiate their own changes to capture their business.

I was hired to train these sales managers in the proper and most effective presentation of menu presentation. I was skeptical at first, and then wholly impressed by this dealer’s innovative “out of the box” thinking. The sales staff was enthusiastic and infused with optimism. The showroom is humming to a different beat of the drum and the excitement is palpable. Customers are buying and liking the upfront honesty projected by the staff.

Ironically, far too many dealerships still don’t understand the necessity for transparent selling. They would rather stick to the status quo and continue to use outdated sales techniques. Their F&I managers tout their use of menu selling, but their process is seldom conducted with proper disclosures. They rarely review the base payment with customers for fear that any upfront disclosure will reduce their personal income. Although there are several great menu software providers on the market, the reality is that individual dealership menus are often changed to accommodate the missing base payment or itemization of cost. Dealers and F&I managers fear they cannot make a profit by being upfront with their customers. It’s time to set fears aside.

One-price vehicle sales and the menu go together. Take Saturn, for example. Back in 1989-1990, when they first opened their doors with a brave new concept of “one-price” sales, the so-called experts in the industry said it wouldn’t work. Customers wanted to haggle for the best deal. Customer wouldn’t pay retail for a car without the bargaining process. Surprise! Customers did buy Saturns with the one-price offer and were happy to do it. The showrooms were packed with customers and the cars were hard to come by!

Especially to today’s recession market, more dealers should think seriously about changing their ways. Perhaps they should get on the phone and talk with other dealers who are successfully using the one-price sales system. They will learn that a transparent finance process is the best way to increase overall profits, while limiting liability and keeping customers coming back for more. They will learn that, sometimes, it’s best to just clean out the barn! Get rid of old practices that aren’t working. This clean-up process comes with an important “fiat,” of course. The sales staff must receive thorough training in how to effectively fulfill their new obligations. Dealers will have to make an investment in their education so that everyone is on the same page.

AutoNation demonstrated that one-price sales on pre-owned vehicles is not only feasible, but profitable. In 1996, when this pioneer of menu selling opened its doors to transparent selling policies, their showrooms were open environments. Like Saturn, the showrooms were soon packed with customers who weren’t dragged from one office to another. They were sold the vehicle of choice and a menu presentation followed. The pessimists were astounded by the results. How could anyone make a profit this way and, especially, by being honest and not playing the game? In AutoNation’s menu selling, every product was priced consistently and offered 100% of the time to every customer! And . . . no customer was ever sent into “the box” for a grueling, much dreaded, pressure-filled sales battle!

The more transparent your sales procedure becomes, the more income you will generate. That’s a fact. But it’s also true that nothing good comes without hard work. Changing ingrained habits is a daunting task. Doing a complete turnabout is scary. Learning innovative techniques may seem risky, but the rewards are plentiful. Now is the time for your dealership to take a new look at its old ways of doing business.

Most of us had to spend considerable time learning now to use computers and the Internet and the plethora of software available for running our business. The long hours spent were worth it. Our office work was streamlined. Communication with customers and suppliers improved and business profits grew. The quantity of documents filed in already bulging cabinets was significantly cut. We became leaner and more proficient.

When initiating a change in procedures, training is critical. You want your staff to feel secure and optimistic. This only comes when they can meet any customer at any income level and guide them intelligently into making the right choices. Give them the tools to be their best. Customers buy from those who exude self-confidence and know how to communicate effectively. Give your sales team new responsibilities, new techniques, new expectations, then train them in how to be successful in their endeavors and then watch them reel in the profits!

CCI Learning Center provides online workshops for any professional in or out of the automotive business who seeks a position in management. We work with automotive, RV, credit unions and call centers nationwide. CCI Learning Center will be offering a new online workshop on developing an “in-house, virtual finance office” soon! Your dealership can be open for business on a 24/7 basis. We are experts in teaching your team how to increase profits by thinking outside the box! Give us a call . . . today!

CHERNEK IN-DEALERSHIP TRAINING

Thu, 28 Jul 2022 00:00:00 GMT

Chernek provides a customized training curriculum for your specific dealership needs. Each dealership is unique and has individual problems, depending upon it location and size. We are not a cookie-cutter provider. Every consideration is taken to ensure your participating personnel learn what will make the greatest impact for your sales and profits. Menu selling is designed not only to increase your profits, but also to limit your liability. Since it's essential that all your management personnel are in alignment to the process, an in-dealership consultation assures they will be on the same page. You don't have to break down the house to get big results that stick. Chernek offers continuing education programs and affordable monthly retainers options! Check out Chernek On-Demand go 24/7 designed for beginners and advanced student. Individual and automotive groups.

A typical in-dealership consultation agenda may include:

DAY ONE

Meet with the dealer to discuss problems and goals.
Review documentation of 30 new and used transactions from office.
Meet with the sales and finance management personnel.
Observe sales management and finance presentations.
Meet with the dealer to discuss workshop initiatives and solutions.

DAY TWO

Kick-off meeting with all dealership retail personnel. Dealer/ administrator explains goals (or this can be with finance personnel only).
Split into two groups (Team A and Team B) to assure coverage on the floor.
Facilitate training session for Team A
Break for lunch (usually brought into the dealership to avoid interruptions throughout the week).
Facilitate second training session for Team B.

CONTENT DELIVERED

Training is based on dealers specific requirements.

CASH CONVERSIONS - Meet Customers Online or Offline!

Mon, 25 Jul 2022 00:00:00 GMT

THE F&I ONLINE SHOPPER - Communicate the Customer Way!

If you think you’re the only dealership getting hit with cash customers lately, you’re not alone! More customers than ever are walking into the dealership with a check for the exact amount.

Why is this happening? The answer is simple: Online financing. And that financing obviously isn’t coming through you.

Many dealers today still don’t want to give customers the option to self-desk. They prefer that the customer wait it out until they get into the dealership to discuss financing options. It’s about protecting the golden goose at all cost.

With many of these dealerships, it might even surprise you that the BDC is left in the dark and given little training when it comes to discussing financing options or answering customer-specific financing questions.

Dealers should consider engaging customers online at the first touch-point or stand the chance of missing out to a competitor. Some signs point to the need to get better with the digital shopping experience in general. Understanding the advantages or disadvantages to meeting the customer on their terms.

Projections show that more than 220 million people will shop online in the United States this year. That’s a big marketplace to attract car shoppers.

It would be nice if all those were shoppers were looking to buy cars. They aren’t. But that number tells you how important it is to understand the digital experience.

Cox Automotive’s latest Car Buyer Journey Study shows that 88 percent of car shoppers start online looking for information. Many of those shoppers stop on dealership websites.

But when a shopper asks a question, only 70% of customers receive a response. And, just 25% of customer specific questions are answered. That means dealers either ignore the customers or use the questions as a way to convince the customers to come into the dealership. It’s a missed opportunity.

A Polk survey shows that 75% of customers would prefer to buy online if they could. Disruptors such as Carvana, SpringBoard,Swap Motors, CarMax, AutoGravity, EchoPark and others have been making car buying a breeze by giving the customer what they want – a digital experience that is simple and easy. Customers not only shop vehicles online, but they also can shop financing options, too.

Creating online financing through your website gives the customer the option to do some of the heavy lifting themselves. The customer gets the ability to determine what they might qualify for, a payment range and terms that are available based on their credit.

Online financing isn’t going away. It will only evolve and grow. If you don’t offer the customer the ability to at least explore these options online by offering self-desking in real-time, what makes you think the customer will stop in their tracks, wait until they step foot into the dealership to do their fact-finding?

Technology simplifies the process by turning over the reins to the customer. It’s what the customer wants. Give them that ability and boost your financing business as well.

Not only do you get the financing business, but you also build a trust with the customer that gives you a better opportunity to sell the customer on other F&I products. Everyone wins.

Contact Becky Chernek 866-894-1899 or email becky@chernekconsulting.com

SUBSCRIPTION SERVICE - A New Way to Build Customer Loyalty?

Tue, 19 Jul 2022 00:00:00 GMT

Is your dealer on board with subscription service? Some major automotive groups are getting into the act - offering a third alternative to buying a car! Customers just don't want to be on a long-term contract that cost a fortune to get out of from under!

Subscription car services have become the latest trend in auto retailing. If you’re not paying attention to it, you should be.

These services are another way for the consumers to acquire a car for their everyday transportation needs.

The basic business model for these services gives subscribers the ability to swap out a car whenever they want for a monthly price. That price typically includes insurance, road assistance, and maintenance.

Depending on the service, there’s no long-term contract. The subscriber can drive the car as long as they want with the flexibility to walk away at any time.

The whole process can be done by simply using a mobile app.

This new way hasn’t yet covered the country. But it’s coming, and dealers should be paying attention and figuring out a way to hop in as the services pick up speed.

It’s not just startups like Clutch, Flexdrive, Fair.com and others that have launched services. The OEM’s have ventured into the business – Ford, Hyundai, Cadillac, Volvo, Porsche, for example.

F&I folks may be scratching their heads over this new way of moving new and used cars, and wondering how this all affects that side of the business.

Subscription car services probably won’t upend auto retailing as we know it. But they do present another opportunity for dealers to develop relationships with customers.

You’ll have to think outside the box, though, when offering value-added products or service to subscription customers.

Subscribers to these services tend to be quite savvy with technology, so you have to get creative. Maybe offer a plan that uses tech for finding hotel and airport parking accommodation as a value-added feature. If the customer is responsible for the wear damage or accidents, perhaps a diminished value product or excess wear and tear might be something worthwhile to consider?

All of this is so new, the sky could be the limit on how creative you can be in presenting options that keep you competitive.

Perhaps creating a customized subscription car service could help revive some of your dead deals. How many of those deals do you accumulate during the month that you simply can’t put together?

A customer’s limited credit, excessive debt, or time on job leads to dead deals. But with subscription car service, as long as they pass a background check and have a valid driver’s license and record, credit has nothing to do with it.

Think about it. You have the opportunity to keep customer in the driver’s seat by putting them into a car with payments they can afford until their credit situation improves.

You have now offered a customer a third alternative, one in which they don’t have to pay on a high-interest loan that is next to impossible to get out of over the next four to five years.

The customer sees you care about them. You’ve helped them with a need, and you’re building a different revenue stream.

As you know, taking care of the customer, even those with challenging credit, builds loyalty. And a loyal customer will stick with you forever.

The subscription service may not be the perfect solution. But as the service becomes more popular, it certainly could be a good option that helps establish a relationship that will eventually grow your business and turn into a retail commitment.

CBS 60 MINUTES – The Best Possible Deal?

Tue, 19 Jul 2022 00:00:00 GMT

(CBS) American households have at least one car loan — and more often than not, they’ve arranged that loan through a dealership after being promised “the best possible deal” on the interest…

http://www.cbsnews.com/stories/2004/04/01/60minutes/main609870.shtml

Oldie but Goodie! What what you promise your customers! The FTC and CFPB are knocking at your door!

What are you doing with your subprime deals?

Mon, 18 Jul 2022 00:00:00 GMT

What are you doing with your subprime deals? Remember repeat business is your best business! Do you facilitate a save-a-deal meeting at least three times a week? Does your F&I manager sit up at the desk with your sales manager? If not, why not? Is it a tug of war to determine who has the authority to make spot decisions? Do you throw mind deals into the F&I office on a shoe-string and a prayer and expect it to get done and be profitable? Does your desk manager understand financing or do they shotgun deals to all the banks and don't understand why you just got nailed for POI and POR stips? When was the last time you sent your desk manager to an F&I school? Has your desk manager ever been in finance? Why you put a desk manager on the desk without prior F&I experience just blows me away and not insist they attend an F&I class! Do you continue to land the customer on any car even though they might have told you they have derogatory credit or you may suspect the customer has slow pay history? Does your sales manager try to shove a square peg into a round hole and expect to deliver more cars and be profitable? Perhaps it's best to obtain more information about the customer firsthand prior to landing the customer on a vehicle they either can't afford or get approved for? Determine a payment range upfront - and the likelihood of what bank will approve the deal. Do you think the customer will just take whatever you throw at them since they have slow pay history, what do they know anyway?

F&I should meet the customer at the salesperson desk and conduct a credit interview complete a credit needs analysis find the reason behind the slow pay history instead of depending on the salesperson to explain the reason behind the customer poor credit. F&I training is essential to help you to understand proven techniques that capture best practices. Chernek offers workshops and in-dealership training get all the managers on the same page. Menu selling begins when the customer walks on the lot or even when they land on the dealership website. Menu selling is about the store-wide culture it's about being transparent and upfront throughout the entire buying experience. Being complacent set in your ways won't capture more sales or raise profits. It takes two to tango! It takes the entire team working on the same page. Consistency makes for confidence and confidence increases opportunity.

WHAT ARE YOU DOING WITH YOUR SUBPRIME DEALS?

F&I Training - What are you doing with your subprime deals? Are your dead deals adding up? Do you have a "make a deal meeting every day or at least three times a week?" Subprime deals not performing the way they should? Cringe at the very thought of a subprime deal!

A Solid F&I Process Assures Success

Sun, 17 Jul 2022 00:00:00 GMT

An F&I Process can either make you or break you. In-dealership F&I Training is essential, discover if your process is working for you or not. Streamline the process by assuring there is a true meeting of the mind helps to speed the overall delivery time and reduce any misunderstanding. When the customer agrees to the terms of the sales they will likely reduce their sales resistance to your product presentation.

Give the customer the reins, let them feel as if they are in control of the buying process will often lead to more products sold! Sending the customer into the F&I office without a full understanding of the terms will diminish trust and cost F&I creditability. This often leads to reduced profits. Menu selling is not box closing the customer understands the terms of the sale. Box closing causes friction between the F&I manager and customer which will negatively impact CSI and the chance of chargebacks. Foster trust between the departments when F&I engages earlier on in the process at the salesperson desk.

It's always best that the F&I manager is up at the sales manager desk when possible. Getting involved earlier on is ideal especially if the customer has slow pay history assures the transaction is straight. It allows the F&I manager to verify information, proof of income or whatever stips are necessary to obtain funding while determining the reasons behind the slow pay history. Get the story to sell to the lender often leads to a better loan approval.

Rebecca Chernek offers customized in-dealership F&I training get the entire team on board! She works with the hybrid sales associate and also trains sales management on desking best practices. Contact Becky Chernek at 866-894-1899 or email at becky@chernekconsulting.com .

What would an online deal assessment say about your overall business practices? I DARE YOU? Take the Chernek Challenge! (1) Roof-top per location! Meet your performance objective for 2022! Contact Becky Chernek at 866-894-1899 or email us at becky@chernekconsulting.com

F&I IS COMING UNDER ASSAULT? ARE CAR DEALERS PAYING ATTENTION?

Mon, 28 May 2018 00:00:00 GMT

If you're still waiting until the customer walks into the dealership to answer specific questions, you’re not competing in today’s market. Meet the customer online and offer them the flexibility to determine payment options up-front!
Doesn’t it seem like new technology just keeps putting more and more pressure on F&I? SpringboardAuto has become the latest online player to make our lives even more challenging. The three-year-old auto finance company is getting rave reviews. If you haven’t heard of it, you need to pay attention.

SpringboardAuto offers your customers direct financing. They don’t need to come to your dealership to finance their next vehicle. In fact, they can walk directly into the dealership with a check made out for the exact amount!
They offer customers other products as well – all completely online. And it gets worse! SpringboardAuto assures customers they’ll stay with them every step of the way during the entire buying process! This means your F&I person likely won't have the opportunity to convert your customer to your financing!

In fact, SpringboardAuto tells online shoppers they’ll obtain financing at terms they can budget for – without the dealer rate markup! “… A direct loan offers credit to you at terms that you qualify for without any rate markup by the dealer. This means you can shop with confidence and stay within your budget.” That’s marketing sleight of hand – without saying so, it suggests they don’t mark up their wholesale rate.

If that doesn’t get your attention, SpringboardAuto is now partnering with Carvana. That means your buyer never has to set foot in your dealership to buy a used car.

Customers give SpringboardAuto 4.7 stars out of 5 in reviews on LendingTree.com, so they must be doing something right. Truth is, it’s a pretty simple formula – they’re giving customers exactly what they want. An upfront, transparent process that puts the buyer in control.

How do you compete with that? You level the playing field by giving customers exactly what they want. Here’s how:

1) For starters, if a customer seeks information about your inventory through your website, respond immediately! You’ll hold the customer’s attention so she doesn’t move on to a ready competitor with a rapid response system in place.
2) Engage the customer early by answering specific questions. And ask questions. Start building the relationship by letting the customer know you’re ready to help them get into a car.
3) Capture the customer with self-desking and menu options on your website. The customer may have been surfing to compare prices, but if you can provide pre-screening options – a complete transactional experience –when they land on your site, the deal’s done before the customer walks into the store. Plus, self-desking helps ensure the customer is in the car they want and within their budget.

This is the most important step you can take to stay in the game. Self-desking is a sales funnel, a process that walks the customer through financing and a decision to purchase your vehicle.

Self-desking is NOT a calculator or static credit application on your website! Your website should be intuitive, addressing customers’ specific questions, not dodging them! You are walking the customer through the sales funnel, building credibility along the way.

Meeting customers online on their terms – being upfront and transparent from the beginning – builds trust. It tells the customer you’re not playing games. It’s essential the simple, easy process you offer online stays simple and easy in the store! You can’t make customers start the process over again after they get into the dealership. Today’s consumers have rejected the old way of doing business. They want "express service."

If you’re just using your website to get customers into your store, you’re at risk of not only losing your piece of the financing pie, but whole blocks of customers who want the quick, hassle-free alternative provided by SpringboardAuto.
Self-desking technology empowers customers by explaining payment options and how to budget for a vehicle purchase. It gives them the flexibility of choosing different plans, depending on their circumstances. It provides an online transactional experience that makes buying a car almost stress-free.

Customers who have slow-pay credit history don't want to be dragged all day through the mud buying a car. Give them the flexibility to buy a car on their terms! Make it easy! Simplify the buying process.
To compete in this market, it’s imperative that you provide potential customers with online self-desking based on their credit criteria on their terms. But technology alone isn’t enough.

The key to making this work is training, training, training – understanding the importance of meeting the customer on their terms.

Disruptors aren't going away! They are more than willing to do what you REFUSE TO DO! Train your staff to engage the customer at the earliest opportunity. Train them to transition the self-desked customer seamlessly into your in-dealership workflow. If the customer hasn’t had the opportunity to check out financing terms beforehand, help them navigate the online process at a kiosk in your dealership.

The time to act is now! And this is where I can help you.
My training includes A - Z implementation, including what plug-ins are best to use for your website. More important, I’ll address how self-desking will merge with your in-dealership workflow. Technology must go hand-in-hand with your in-dealership practices or it won’t stick. Digitizing the entire buying experience creates a seamless process from the first online hit to finalizing the transaction with a dedicated finance or single-point sales associate.
You'll also learn that handing a digital menu over to your customer won't create more sales – digital menus enhance your presentation, but they should NEVER replace you or do it for you!
Learn how to increase sales while retaining more customers!

Check out my new workshop!

Mastering F&I in a Digital Age

F&I ONLINE TRAINING FOR BEGINNERS OR ADVANCE!

Sat, 31 Mar 2018 00:00:00 GMT

F&I Online Training for Beginners or Advanced Students. All the secrets of a professional F&I manager - what goes on behind the closed doors of the F&I office. Be efficient - get the promotion you've been dreaming about - raise your expectations - self-education is the key to achieving ultimate success. Check out www.chernekconsultingvirtualpro.com for details. If you can't make a three-day Closing Tools Mastering Menu Sales Workshop this is a must! Go 24/7 on YOUR time. Courseware comes with certification upon completion!

F&I ONLINE - F&I TRAINING - CHERNEK ON DEMAND

F&I Online Training Go 24/7 with Chernek OnDemand. Developed for the Beginner or Advanced Student. All the F&I Secrets - get the promotion to Finance and Insurance and raise your earning potential significantly. Increase your overall performance with proven techniques that work with today's customer. Content is relevant based on today's business trends.

Complimentary (1) single store analysis by an unbiased trusted industry professional. Are you maximizing your potential! Find out!

Sat, 13 Jan 2018 00:00:00 GMT

Complimentary (1) single store analysis by an unbiased trusted industry professional. Are you maximizing your potential! Find out!

F&I TRAINING - THE F&I INTERVIEW

Fri, 12 Jan 2018 00:00:00 GMT

The F&I Interview is key to building rapport and reducing the customer sales resistance. Meet the customer on their terms at the salesperson desk validate the transaction for accuracy reduce the F&I bottleneck. F&I Training validates the benefits of the interview process by creating a value proposition that gets to the heart of the customer concern. The transaction is complete the F&I manager isn't chasing after documents that ultimately slows down the overall delivery.

F&I TRAINING - THE F&I INTERVIEW PROCESS

Meeting the customer on their terms reduces resistance and builds rapport and speeds the overall delivery. Overcome product objections based on a valid proposition - based on the customer needs. Assure the deal is straight and minimize chasing stips and significantly increase profits! Get the deal done correctly the first time out.

A PROCESS WILL EITHER MAKE YOU OR BREAK YOU!

Wed, 10 Jan 2018 00:00:00 GMT

Is your sales process consistent? My boss once told me that a process will either make you or break you. Getting the entire team on the same page will make a huge difference in your overall performance. Consistency makes the difference and helps to build confidence. Confidence, as you know, assures success. You can't manage what you don't know. F&I Training starts from the meet and greet, the minute the customer walks in the door or at the dealership website finalizing the transaction in the F&I department.

F&I TRAINING F&I PROCESS CAN EITHER MAKE YOU OR BREAK YOU!

An F&I Process will either make you or break you. You can't manage what you don't know. Consistency is key and helps you to stay on track that maximizes profits and the ability to sell more cars. Chernek Consulting offers in-dealership implementation from the time the customers lands on the dealership website to finalizing the transaction in the F&I department.

WHEN THE CUSTOMER SAY'S NO! I WANT TO STICK WITH THE BASE PAYEMENT!

Sun, 17 Dec 2017 00:00:00 GMT

F&I Training a no doesn't have to mean no, it might just mean, tell me more. Sell to the customers needs not to your paycheck. Closing the customer is a value proposition - the benefit your products offer to the customer. Listen to what the customer tells you - be patient. The customer will tell you the reason why they have decided not to take advantage of the F&I products. If you have done an effective interview you can state, "many of my customers under the same set of circumstances you described who often keep their vehicles for over six years or more take advantage of my service contract is there a reason you chose not to take advantage of the service contract? Make sure you have your word tracks down it takes work - F&I Training and role-play to master your word tracks. Word tracks keep you focused and steers you in the right direction. Word tracks are like a GPS without them you will get sucked down the rabbit hole. You aren't robotic you are genuine so own your content inside and out. There isn't a professional athlete or performer who doesn't practice role-play every day! F&I Training is essential to your overall performance. Rebecca Chernek offers customized in-dealership training and financial services or OEM. For our CBT Automotive Network dealers (1) complementary single store online analysis find out why your not running over $1000.00 per car! www.ccilearningcenter.com/opportunity

F&I TRAINING WHEN THE CUSTOMER SAYS NO TO YOUR MENU PRESENTATION.

F&I Training Don't let a no get the best of you. A no doesn't have to mean no, it might just mean, tell me more! Get the customer to tell you how to sell them. Sell the value of your F&I products to the customers need not to your paycheck.

THE PSYCHOLOGY OF SELLING: ASKING QUESTIONS, GIVING ANSWERS: F&I TRAINING

Tue, 01 Dec 2015 00:00:00 GMT

It’s easy for finance managers to jump to conclusions when customers reject product choices. But jumping to conclusions is a dangerous proposition that can lead you down the road to lost income potential.

All too often, quick assumptions can lead F&I managers to do irrational things. Like stretching terms in an attempt to meet the customer’s budget, or foregoing product offerings because you’re fairly certain they won’t be able to afford them. When you fly blind in F&I, you’re bound to find yourself far off course. Asking questions keeps you on track.
Conducting a thorough interview can tell you a lot about why a customer may decide against a product. Knowing how long they typically hold onto a vehicle, including their daily driving habits, can tell you a lot about whether or not a service contract would benefit them. It can also give you plenty of insight into what they’ll find of value. Learning how to ask questions is the key to improving F&I product sales.
The fact is, customers always buy when the value of the product outweighs the cost. This applies to all products: cars, homes, jewelry, and even clothing. Recently, I spied a striking red dress at a Las Vegas Nordstrom. I was in town for an important event and I wanted to make an impression. The dress had my name written all over it. I tried it on. It fit like a glove. But when I looked at the price tag and saw $1,295 staring back at me, I quickly made my way out of the fitting room and hung the dress back up.
Once there, I was greeted by a salesperson. I informed her that the price was too high. It cost even more than my first-class plane ticket had! What the salesperson did next was as close to genius as anything I have ever experienced in a clothing store. First, she acknowledged my concern. Then, she proceeded to ask me questions.
Where did I intend to wear the dress? What was its purpose?
I explained to her that I was about to attend an important conference. I needed a dress that would make a powerful impact. That’s when her face lit up like a Christmas tree.
You’ll want to look your best, she told me. A function such as the one I was set to attend was no place to take chances with my attire. If I was there to make an impression, the best thing I could do for myself was to find a dress that would truly dazzle.
Before long, I began to visualize myself wearing the dress in front of hundreds of people – all prospective clients. In my mind, I began to see the potential impact the dress could have. And in that fleeting moment, the value of the dress began to outweigh the cost. So I bought it.
It was an experience that taught me a valuable lesson that stays with me to this day. Customers will buy only when the value of the product outweighs the cost. When you are able to talk to a customer on their level – acknowledging their concerns, asking questions, clarifying their needs – you will be in a significantly better position to guide them to a clear understanding of the potential consequences of not taking advantage of the product. Any product. Whether that’s a stunning red dress or an extended service warranty on a new car.
This is the psychology of F&I selling. And it all starts with the interview. It may not work every single time, but it will certainly increase your chances of closing the F&I deal. It will also greatly decrease the chances of profit slipping through your fingers.
The interview helps you build rapport with your customer. Open-ended questioning techniques are the best way to start. Not only do they help you gain a keen insight into precisely what the customer’s needs are, but they also help the customer understand their needs.
How many years does the customer plan on keeping their vehicle? How many miles do they drive every year? Will their driving habits remain the same?
Once you have the basic information, you can then begin to ask more specific questions. If the customer rejects a service contract, your next question should be: Why? You already know their driving habits; you have an understanding of their needs and their concerns. Now you’re in a better position to be able to counter their objections with information that applies to them.
Did you have a service contract with your previous vehicle? What about it did you not find valuable?
If they explain to you that they feel sufficiently covered by a manufacturer’s warranty, explain to them the benefits of an additional service warranty. If they tell you that the price is too high, talk to them about the money they’ll save in the long run. If they say their previous warranty didn’t cover enough, go over their coverage options again. Sometimes, questions lead to more questions – and ultimately, to answers that can help you underscore a product’s value over its cost.
Nine times out of ten, customer objections are the same. You’ve no doubt heard them all before. Why not prepare yourself in advance for what you know you’re likely to hear – all the better to zero in on a successful closing?
Effectively emphasizing the benefits of a product and being able to explain why it makes sense to take advantage of can result in miraculous turnabouts. But if you don’t ask questions, you’ll never know what direction to go. Listen to what the customer tells you. More often than not, what the customer tells you will lead you right to the sale.
Sign up now for my 3-day F&I Training – Closing Tools and Mastering Menu Sales Workshop taking place January 19 through 21 in Alpharetta, GA! You’ll learn how to remove pressure tactics from the F&I selling process, how to dramatically reduce the time customers spend in F&I, while mastering the F&I sale. Chernek Consulting has been offering F&I Training since 2001 with hundreds of satisfied auto dealers throughout the United States and Canada. Visit www.chernekconsulting.com for the full agenda. Seating is limited, so register soon!

A WATERSHED MOMENT FOR THE AUTO SALES INDUSTRY

Sat, 12 Sep 2015 00:00:00 GMT

TrueCar is ramping up the stakes in the battle for auto sales supremacy. In a recent announcement, it was revealed that TrueCar has entered into a partnership with Sam’s Club, bringing customers access to discounts from the online pricing website’s network of more than ten thousand authorized dealerships.

The collaboration, which will operate in a manner similar to TrueCar’s partnership with USAA, represents a bold move that will put Sam’s Club in head-to-head competition with the Costco Auto Program – a wildly successful, members-only service launched in the 80s by the wholesale giant. Up to this point, Costco’s rule in the direct auto sales market has gone unchallenged. The TrueCar-Sam’s Club partnership has changed that.
According to an official press release, the Sam’s Club auto program will also give used car purchasers a three-day return policy and access to a Buyer’s Bonus which will front customers as much as $2000 for car repair and service.

The Changing Face of the Auto Sales Industry

This announcement is a watershed moment for the automotive sales industry. Standing amid the convergence of online tech and traditional car sales are the brick and mortar establishments that still rely on word of mouth and walk-in customers to keep their doors open. How will this impact business for them? The answer to that question is obvious. And it just may cause legions of dealers to reexamine how they do business in the 21st century.

Without a doubt, the auto sales landscape has undergone dramatic upheaval in recent times – and announcements like the TrueCar-Sam’s Club partnership continue to affect changes that may soon render the industry unrecognizable. By all accounts, customers are flocking in droves to online platforms as a way of performing research and finding the best deals around.

The bad news is, these types of services are cutting deep into the profit margins of non-participating dealerships. The good news is, there’s still a chance for those dealerships to remain competitive, even in the light of such widespread disruption.

What Dealerships Can Do to Adapt
Charles Kettering, the famous American inventor and businessman, once said, “The world hates change, yet it is the only thing that has brought progress.” These are quite possibly the most accurate words ever spoken when it comes to describing the resistance exhibited by traditional auto dealers to enacting change. They also cut to the heart of why adopting change so is vital to remaining competitive in today’s vastly altered industry.

Have the vision to look beyond the status quo. Often, businesses do what they do for no other reason than “that’s the way it’s always been done.” Seldom do they go to the effort of reexamining their methodologies to determine if there is anything that can be done better. A willingness to do so is imperative if an auto dealership is to survive.
Use the Internet more smartly. Revamping existing websites from informational platforms to transactional platforms can capture customers who are simply browsing and who would otherwise not visit a given dealership.
Commit to improved relations by meeting customers on their terms. Implement dealership-wide change that focuses on determining a customer’s creditworthiness early in the game. This can cut extensive approval times dramatically and creates an atmosphere of collaboration that earns lifelong customers.
Invest in Finance and Insurance training. Even the greatest athletes in the world never stop training. Those dedicated to longevity and continued peak performance are always seeking out ways to better their game. Auto sales professionals are no different – and considering how quickly things change, it’s even more imperative that they brush up on techniques geared at maximizing profit and minimizing customer losses. F&I online training courses are a good alternative to paying the travel costs associated with sending dealership staff to seminars.

Perspective is everything. Some see headlines pronouncing the new era of online auto sales as a death knell. Others see it as an opportunity to adjust their trajectory. How dealerships react to disruptive change will determine if they’ll be among those left standing when the smoke clears. The Internet has forever changed the way that business is done. The time has come to embrace that change.

CONNECTING WITH CONSUMERS AT WARP SPEED

Wed, 01 Apr 2015 00:00:00 GMT

In the last decade, technology has dramatically changed the way people approach a vehicle purchase or lease. Today’s consumers research brands, models and MSRPs, car-buying strategies and tips, and dealer customer reviews before they ever set foot in a dealership. And, they’re not just doing research online – that’s where the real shopping begins.

Plus, technological changes just keep coming at an increasing rate! Dealerships are scrambling to keep up with the latest trending digital platform – each of which brings a competitive opportunity. If you’re not sure whether your operation is taking advantage of all the avenues to profit in today’s cyber marketplace, an F&I consultation could help you make timely adjustments.

Besides the Internet’s virtual “Car Buying 101” curriculum, consumers are aware that laws are in place to protect them. Numerous websites, hosted by the FTC, CFPB, state attorneys general and organizations such as Edmunds.com, educate consumers about their rights in both the purchase and lease processes – and later phases of vehicle ownership.

Also, many Gen Xers and Millennials communicate via texting rather than phone calls. As a population, we’re used to fast-everything. Thanks to a boundless, turbocharged Internet, we expect instantaneous responses to our searches, product orders and queries.

The only way you can survive and compete in this dynamic landscape is to meet customers on their own terms. Only 17% of customers don’t shop online, which means the rest are screen-shopping dealership websites. Does your website offer customers the same welcoming atmosphere and level of service you provide in your brick-and-mortar dealership?

With digital commerce reaching warp speed, the phrase “time is money” is almost passé. In effect, time no longer exists. To capture and hold potential customers’ interest, you need to connect with them the nanosecond they land on your website. Next, you transition to relationship building with an online chat, engaging emails or phone calls to stay front and center as the customer peruses the web’s auto marketplace. If your dealership sales and F&I people aren’t Internet-savvy, online F&I training and in-store consultations can bring them up to speed.

Meeting customers on their own terms means using the customer’s preferred form of communication – whether it be texting, emails, instant messaging or old school telephone chats. A new software platform enables dealerships to text customers using the dealer’s existing phone system. Texting with customers allows them to control the flow and timing of the conversation, thereby empowering them, which in turn engenders trust and, ultimately, buy-in.

Many dealerships are offering online shoppers the option of being pre-approved for financing. Pre-approval benefits both the customer and the dealer. The customer doesn’t go into the dealership blind, wondering how her credit will impact what she can afford and possibly worried about being embarrassed by a low credit score. The sales person can put the customer on the right car at the very beginning, which makes for a more pleasant customer experience and speeds the in-dealership process.

Remember, however, that technology only goes so far. When the customer you’ve been chatting with comes into the dealership, making the human connection is essential. You’ll welcome her with a classic meet-and-greet, knowing that successful selling starts with a warm greeting, a firm handshake and a genuine smile. You want everyone who comes into your dealership to feel that they succeeded in selecting the best place to buy their next vehicle.

If your customer hasn’t been pre-approved, you’ll need to carefully qualify her during the meet-and-greet phase to assess whether she’ll be able to purchase the vehicle she’s selected. You conduct the assessment by asking a series of questions as part of a friendly conversation. When the customer realizes you’re listening and beginning to understand her needs, she’ll begin to see you as an ally, rather than an adversary. This process is essential for building rapport with the customer.
In my training, I refer to these initial qualifying questions as the first phase of “The Interview,” but the customer should never feel that she is being interrogated. The qualifying questions are asked by the sales person while discussing vehicles in the showroom or on the lot. A few of the many questions that will help you gauge the customer’s circumstances are provided here:

Interview Phase I – Qualifying Questions

Is there someone here you’d like to see in particular?

Have you ever bought or leased a vehicle from us in the past?

Who provided financing for your current vehicle? Do you have a good relationship with your bank?

What did you like most about your last vehicle? What didn’t you like about it? What can we do to make you happier with your next purchase?

If you want to guide the customer to a car she can afford and get financing for – while maximizing profits – it’s critical that you understand her needs at the earliest possible point in the process.

The Interview’s second phase is conducted by the finance manager during the review of the purchase agreement to confirm the accuracy of the figures related to the transaction. The information gathered at this time will help reduce sales resistance, boost rapport and frame a positive purchase experience.

A few of the many questions you’ll want to ask include:

Interview Phase II – Product Value Questions

How long do you usually drive your vehicles before replacing them? Do you expect to hold on to the car you’re buying today for the same length of time?
How many miles do you normally put on your vehicles annually? Do you expect to put about the same amount of miles on the vehicle you’re buying today?

Pay close attention to the customer’s answers. They’ll help you overcome her objections later when you present your products. You’ll be able to emphasize the products’ value and potential benefit to the customer based on her actual situation.

By approaching the customer on his or her terms – and collecting as much information as possible – you’ll reduce the odds of losing credibility. Remember to always respect the customer’s needs and present products that respond to those needs – rather than your bank account!

You should rehearse both phases of The Interview until they become second nature – a part of a normal conversation in the dealership context. You’ll find interactive training in The Interview – and much more – in my online F&I training platform, Chernek Consulting Virtual Pro.

By meeting customers on their terms at the earliest possible point of contact – and communicating the way they prefer – they’ll see that you’re making a genuine effort to understand their needs. You’ll cultivate rapport, then trust, then loyalty, and finally a relationship that will last a lifetime. And remember, your satisfied customers are your best advertisement.

ARE YOU USING F&I TRAINING TO CAPITALIZE ON TRENDS IN BOTH ONLINE SHOPPING AND SUBPRIME CUSTOMERS?

Mon, 19 Jan 2015 00:00:00 GMT

According to DealerTrack, 83 percent of customers are shopping for cars online. Many of those customers are spending an average of eight minutes on a dealership website calculating payments.

Some auto dealers have even taken the approach of offering customers the ability to obtain preapproval prior to coming into the dealership, providing them with immediate access to F&I. Many industry veterans, however, view the preapproval process as an outright attack on their way of doing business.

They don’t want to talk numbers over the phone. They’d rather wait until the customer comes into the dealership for delivery. But waiting to discuss terms with the customer face-to-face will cause dealers to lose sales and an opportunity to secure financing.

As I see it, dealers continue to ignore the signs that more than 50 percent of consumers have nonprime to subprime credit. Or, they don’t realize that to succeed in this new credit landscape, their sales and F&I personnel have to do things a little differently.

And help is readily available. My F&I training workshop – F&I Subprime Sales Success, slated for early April – targets specific challenges and provides solutions and tools for thriving in the new marketplace. For broader content, my new F&I online training platform, Chernek Consulting Virtual Pro, delivers comprehensive F&I education that uses real-world scenarios to help students grasp the lesson and put it to immediate use. This cutting-edge program – interactive, up-to-date and highly relevant – is accessible 24/7, 365 days a year. Students advance at their own pace.

Back to those subprime customers. Not properly qualifying the customer prior to landing him or her on the car cuts into profits and increases liability. Since most sales staff aren’t being adequately trained to ask questions that will steer them in the right direction, customers are being put on vehicles they can‘t budget or get approved. The customer waits for hours in the dealership until approval is finally granted – on a different vehicle.

It’s a balancing act. You don’t want to offend customers with established credit, but it’s the questions you don’t ask that will get you into hot water every time! For example, “What brought you into our dealership today? Are you here to meet with anyone in particular? Have you purchased a vehicle from us in the past? Are you currently financing and, if so, with what bank?”

Keep in mind that you aren’t interrogating the customer, you’re just trying to get acquainted to better meet his or her needs. Providing the customer with the dealership’s mission statement is an ideal way to frame the conversation in a positive, proactive light.

Subprime financing doesn’t have to be a tug of war. If any flags are raised, bring the customer into the dealership. Obtain a credit statement and introduce the customer to the finance manager. Establishing credit criteria earlier in the process will increase the likelihood of landing the customer on the right vehicle the first time out – a vehicle the bank will buy and the customer can afford. Stripping deals down to the bare bones isn’t any fun – and it’s poor business sense.
Plus, vehicles are being advertised on websites with discounted pricing, but some dealers are passing the acquisition fees on to the customer – a practice that can’t be defended in court. You don’t want to get caught in this compliance nightmare! But that’s a topic for another blog.

Tired, worn-out methods continue to plague many dealers and serve to diminish car sales and revenue. Remember, the bank decides if the customer rides. If you create a process that ensures consistency and helps to manage every sale, you’ll maximize profits and overall customer satisfaction.

I created my 1½-day workshop, F&I Subprime Sales Success, to share proven methods for not only navigating the subprime marketplace, but to capitalize on its potential – while minimizing liability. This subprime training event covers:

How to properly qualify the customer during the meet and greet.
Understanding your banks’ guidelines and procedures and knowing how to work with them.
How to structure the deal to maximize potential.
How to offer additional products without breaking the customer’s budget or your advance.
How to minimize liability when working with subprime customers.

Tuesday & Wednesday

April 7th & 8th

For more information or to register, go to F&I Subprime Sales Success http://www.ccilearningcenter.com/fi-subprime-sales-success .

For more comprehensive F&I training, check out Chernek Consulting Virtual Pro

http://www.chernekconsultingvirtualpro.com/tour an online F&I training program that provides an interactive virtual learning experience 24/7, 365 days a year.

GEN Y AND F&I: STREAMLINE YOUR PROCESS TO FOSTER LOYAL CUSTOMERS

Wed, 10 Dec 2014 00:00:00 GMT

In several blog posts I wrote for NCM this past year, I touched on a subject that garnered quite a large reaction: Gen Y —or Millennials — and the way they want to buy cars versus the way car dealers have always sold them in the past.

I found people coming down hard on both sides of the debate: to change the automotive dealership to suit this new generation, or do things the way they have always been done, and trust that the new buyers will adapt. Both sides have passionate arguments, but let me say up front: I believe that if we as an industry don’t change, the buyers will take their money somewhere else. You might believe they have no other options, but services such as Uber and Lyft that allow users to share rides with each other, or Zipcar, that gives them the option to rent vehicles on an hourly basis, not to mention growing pushes for better public transportation in many major urban and suburban areas, mean that Gen Y is already putting an infrastructure into place that will make owning a car less necessary.

And since this generation of buyers is expected to make up 40% or more of the purchasing population by 2020, car dealers need to figure out how to better reach these customers now, when there is time to build brand loyalty, as well as instill the benefits of car ownership.

The biggest hurdle dealers face when it comes to Gen Y buyers is the amount of time it takes to get them in, get the necessary selling and paperwork done, and get them out again in their new vehicle. We don’t need to reinvent the wheel, we just need to refine it. And one area I passionately believe all dealers can be doing a better job — and not just for Gen Y, but for all buyers — is in F&I.

There are a variety of reasons customers get bogged down in the F&I office, ranging from a poor handoff from sales, to incomplete paperwork, to lengthy sales presentations. There are a variety of ways to streamline the relationship between sales and F&I, making the process smoother not only for the customer, but for the dealership as well. However, the area I’d like to focus on now is streamlining the F&I presentation.

There are quite a few options out there for F&I training, ranging from in-person classes to online options. Most of them focus on a few basic essentials:

Use a menu system to sell the products.
Offer every product to every customer
Keep the number of total products small, so as not to overwhelm

Menu selling has become ubiquitous in the F&I world, but there are still many dealerships out there who have not made the switch. There are also “Lone Ranger” F&I managers who believe they have a better system than the one the dealership has chosen to implement. Every automotive dealer in business today, no matter what size or where you are located, should sit down and chose a menu system that works for your unique needs. And then you need to provide ongoing training to teach your F&I managers how to use the system, and then reinforce that training over time. The goal should be to get a customer in and out of the F&I office in 30 minutes or less.

It won’t happen overnight. You may have to try a few different F&I menu options before you find the one that works best for your dealership. If it currently takes you an hour or more to get a customer in and out of the F&I office, then try setting smaller goals to start, especially as your team gets used to new procedures — try to shave 10 minutes per month off the average time until you are hitting your 30 minute goal, for example. Then recognize and reward the F&I managers and sales people who are doing the best job at using the new tools to encourage everyone to keep learning and using them.

This is where we start when it comes to giving Gen Y a reason to keep enjoying car ownership, and to not only purchase vehicles, but refer the dealerships they bought from to their friends and family. Gen Y can be very brand loyal, and if a car dealership gives them the experience they are looking for, they are going to be far more likely to return to that location for all of their future vehicle needs. This is the kind of customer every automotive dealer dreams of — and all it takes to get there is a willingness to adapt and give them an experience they’ll remember for all the right reasons.

THREE DAY IMPROMPTU F&I WORKSHOP – “DON’T GET LEFT BEHIND”

Wed, 24 Sep 2014 00:00:00 GMT

THREE-DAY IMPROMPTU MENU SELLING WORKSHOP!

ALPHARETTA, GA

OCTOBER 6TH, 7TH & 8TH

Streamlining your F&I Training procedures ensures performance and peak customer satisfaction. Quit doing business the “hard” way and get all of your managers on the same page today! This workshop guarantees your dealership will undergo a significant performance boost while developing a strong bond with customers. You’ll learn how to effectively present your products in a user-friendly, easy to understand format that customers appreciate. Expect an interactive F&I Training program that will keep you completely captivated and on your toes! The course material has been carefully crafted to provide up-to-date content based on today’s highly informative customer. You can’t continue to use outdated training techniques and expect superior results. Let’s face it: customer can’t stand the pitch! As Jeffrey Gitomer put it, “Customers hate to be sold but they love to buy!” Learn how not to pitch products and instead offer a value proposition that wins over more customers and boosts your profits significantly! This F&I Training workshop is real-world oriented and geared toward today’s customers!

Workshop Highlights

How an F&I department evaluation keeps you in business and increases revenue.
Why inconsistency in F&I product and pricing kills profits.
How to remove pressure tactics from the F&I selling process.
How to dramatically reduce the time customers spend in the F&I office.
Why all management personnel should know the menu selling process.
Why F&I departments are under fire and how to avoid legal problems.
How to use dealer-tested solutions for overcoming objections and closing sales.

DAY ONE

9:00 AM – 11:00 AM

Introduction

CFPB (Consumer Financial Protection Bureau and Why It Matters)

The Interview Process

Meeting the Customer on Their Terms
Establishing a Common Bond
Check the Transaction for Accuracy
Product Need Awareness
A Meeting of the Minds

11:00 AM – 11:15 AM

BREAK

11:15 – 12:30 PM

What’s on the Menu?

Disclosure & Terms
Product Consistency & Pricing
Descending Terms & Customer Resistance
Offering Options

12:30 PM- 1:30 PM

LUNCH

1:30 PM – 3:30 PM

Review & Role-Play

Interview
Menu Presentation

3:30 PM – 3:45 PM

BREAK

3:45 PM- 5:00 PM
When the customers says “NO! I want to stick to my base payment!”

DAY TWO

9:00 AM – 11:00 AM

Role-Play

Interview
Menu Presentation
When the customer says “NO! I want to stick to my base payment!”

11:00 AM – 11:15 AM

BREAK

11:15 – 12:30 PM

F&I Training-Upselling Techniques

Learn how to effectively overcome the customer’s objections based on a value proposition. You will learn that “no” doesn’t always mean “no” It might just mean “Tell me more!”

12:30 PM – 1:30 PM

LUNCH

1:30 PM – 3:30 PM

Upselling Techniques

F&I Training-Service Contract Closes

I Have my Own Mechanic
Perfect Car
I Have the Manufacturer Warranty
It Costs Too Much
Bought One Before, It Didn’t Cover Anything

F&I Training-Ancillary Product Closes

Gap Protection
Paint & Fabric Protection
Tire & Wheel
Key Replacement / Dent Ding / Theft Recovery

3:30 PM – 3:45 PM

BREAK

3:45 PM 5:00 PM

Role-Play

Menu Presentation
When the Customer Says “No! I want to stick with the base payment!”

DAY THREE

9:00 AM 11:00 AM

Role-Play

Interview
Menu Presentation
When the Customer Says “No! I want to stick with the base payment!”

11:00 AM 11:15

BREAK

11:15 AM– 12:30 PM

Product Objections

It Costs Too Much
I Have My Own Mechanic
Perfect Car
Gap Protection

12:30 PM – 1:30 PM

LUNCH

1:30 PM – 3:30 PM

Role-Play

Service Contract Closes
Ancillary Products

3:30 PM- 5:00 PM

Credit Union Conversion

Right of Off-Set

Questions & Answers

Chernek Consulting Virtual Pro will be launching shortly! F&I OnLine Training Made Easy! Interactive-Engaging Platform designed for the beginner or advanced student!

DON’T LET YOUR COMPETITION EAT YOUR LUNCH

Tue, 22 Jul 2014 00:00:00 GMT

“Subprime financing.” It’s one of the most frequently-spoken catchphrases in the auto sales industry today. It’s also one of the biggest pain points for car dealers so entrenched in their old ways of doing business that they can’t see the forest through the trees. We all know working subprime deals can be a pain in the you-know-what. But so is selling cars without making a profit. You’d think this harsh reality would be enough to jolt sense into sleepy minds – but if that were the case, I’d probably be out of a job.

Here’s the simple, unadulterated truth: if you want to maximize your profits in today’s rough and tumble economy, you’re going to have to learn to embrace subprime financing. Period. But before you can do that, you first have to ask yourself some hard questions that probe deep into the heart of what you’re probably doing wrong.

1.) Do you have an inventory diverse enough to accommodate a broad range of budgets?
2.) Is there a system in place at your dealership that automatically selects a range of specific vehicles based on the customer’s credit information?
3.) Do you have the right lenders in place who will buy deals without forcing a ton of contingencies?
4.) Is your F&I Manager schooled on the various methods of working with subprime or nonprime credit? What type of F&I Training does your F&I Manager attend on a regular basis?
5.) What compliance checks – if any – does your dealership have in place to double-check all steps throughout the buying process? Does your F&I Training include F&I compliance?
6.) Do you take steps to ensure your internal processes and procedures are followed by everyone and not just your F&I Manager? Did you know that F&I Training is not just meant for F&I, everyone in the dealership should attend F&I Training.
7.) Are you of the opinion that compliance starts and ends with the F&I office and has nothing to do with what goes on at the sales floor level?
8.) Do you find yourself stuck in the mindset that all it takes to sell a car is to land the customer on a specific car before talking figures?
9.) What’s the frequency of your staff’s training schedule? Do you offer weekly or bi-monthly training refreshers? F&I Training is essential it’s the basic building blocks and this isn’t meant for just the F&I department.
10.) Is your sales staff gun-shy about sending subprime customers to your F&I Manager because he or she has a poor attitude about it? When is the last time you sent your F&I Manager or better yet your sales manager to NonPrime or SubPrime F&I Training?
11.) Do you have a smart pay plan in place to adequately support subprime deals in sales and finance?

Many dealers make the decision to sell cars to subprime customers, or buy trigger leads in the hopes of upping their sales margins. Then they do absolutely nothing to upgrade their existing sales processes or consider F&I Training. If this sounds like you, you’re in for a rude awakening. With no game plan in place, you’re sunk before you’ve even set sail.

The fact is, more than 50 percent of all car customers suffer from near-average to subprime credit . Without a well-planned process in place for dealing with nonprime or subprime customers, you’re effectively pushing half of all prospective buyers out the door and handing your lunch to your competitors in the process. If that doesn’t put a pit square in your stomach, maybe you’re in the wrong line of work.

Having an established process in place that encourages more subprime sales is absolutely essential to surviving the shifting tides of our uncertain economy. Now is the time to consider trading in those old, worn out methods that have been undermining your results. Learning can be fun!

Rebecca Chernek is the founder and president of Chernek Consulting, LLC. With over three decades of experience, she is one of the auto industry’s most sought-after thought leaders. She offers specialty, in-house F&I consultation services and regional workshops on F&I Training and recently added Non-Prime SubPrime training. Contact Rebecca today at becky@chernekconsulting.com or visit www.chernekconsulting.com or contact directly at 404-276-4026 for a complimentary analysis!

CLOSING TOOLS MASTERING MENU SALES WORKSHOP-MAY 13TH & 14TH!

Mon, 24 Mar 2014 00:00:00 GMT

Ask the average car consumer what they think of auto salesmen. Warning: before you do, brace yourself for what you’re going to hear. Words like “seedy” and “not to be trusted” will likely be bandied about – and what you learn may just force you to question every practice you’ve ever put into place in the commission of selling a vehicle. The bottom line is, buyers trust car salesmen about as far as they can throw them. Sadly, the same goes for their opinions about F&I professionals. Imagine a consumer not trusting the very people they’re asked to put their faith in when closing the deal on financing and protective products. Is something wrong with this picture? You bet there is.

Bizarrely, dealerships around the country frequently adopt what can best be described as a “style over substance” approach to dealing with the problem. As if slapping a band aid on a serious injury – or adorning a dealership with signs that scream “We’re trustworthy!” while practicing the same old, worn out selling approaches – could ever accomplish anything effectual. Here’s a secret you might not be privy to. If you want to keep customers happy, buying, and coming back again in the future, there’s only one way to do it. By undertaking the practice of menu selling.

Menu selling isn’t new. It’s not last year’s news, either. Far from it. Leaders of the auto sales industry have been singing the praises of menu selling for well over ten years, and for darn good reason. The data is there. Industry research has shown us time and again that dealerships who use menu selling see a dramatically reduced number of charge-backs, limited liability, and increased business. Better yet, menu selling results in past buyers bringing their business back the next time they’re in the market for a vehicle.

Why? It’s simple. Auto consumers appreciate full disclosure. Not only do they appreciate it – they demand it. Buyers want to know they’re not going to discover some invisible loophole in the agreements they sign when they purchase a car. What’s even more critical, car consumers are discovering that the “no-hassle” auto purchase isn’t just a pipe dream anymore. They’re finding that buying experience with increasing frequency as a growing number of forward thinking dealerships take proactive steps toward changing course.

The real tragedy is that for all its proven benefits, menu selling is still only practiced by about 20 percent of dealerships nationwide. That’s roughly one in five. Despite the fact that the top dog retail giant in the industry, AutoNation, has embraced menu selling as standard practice. And in the face of statistics from menu software makers like Maxim Track, which reports increased PVR around 33 percent when menu selling is utilized. This leads me to ask the question: are the majority of dealers who haven’t yet embraced menu selling crazy? Or are they simply so entrenched in their traditions that they can’t see their way clear to making changes that could mean the difference between extinction and survival?

I prefer to think it’s the latter. I’ve known far too many perfectly competent dealers and F&I specialists in my time to be convinced it’s a separation from reality that’s to blame. Many of them are convinced that transparency in auto sales in a misnomer. Still others choose to accept the fact that complete compliance with state laws and regulations is simply not possible, and that lawsuits are “part of the territory” of the industry. It’s this very kind of defeatist attitude – the deer in the headlights syndrome – that will be responsible for a great number of dealerships going under. Just as it will be responsible for an entire generation of F&I Managers losing jobs to a more highly diversified league of professional.

The time has come to pick which team you’ll be hitting for. Whether you’re new to the concept of menu selling or you’ve tried it out and aren’t getting the results you should, there’s only one thing that can turn the tide in your favor: training. On May 13 and 14, I’ll be giving a workshop at the Georgia Tech Global Learning Center called Closing Tools – Mastering Menu Sales. If ever there was a workshop to add to your top three list of must-attends, this is it. Click here to register today.

FINANCE & INSURANCE BREAKING NEWS

Sun, 02 Feb 2014 00:00:00 GMT

Chernek F&I Success

F&I Training with Chernek Consulting. Offers two day customized in-house training with one day complimentary audit. Get all your managers on the same page Includes two months continuing education through Chernek Consulting Virtual Pro F&I Online System powered by LightSpeed VT! www.chernekconsultingvirtualpro.com

BE THE LEADER IN F&I TODAY?

Mon, 13 Jan 2014 00:00:00 GMT

Auto-Nation USA, the #1 publicly owned retailer, opened it’s doors as the pre-owned mega giant in 1997. It built elaborate showrooms; county records show one was 218,000 square feet. The showrooms included a café, a playroom, and an aftermarket display platform.Kiosks with computers were placed throughout the store enabling consumers to efficiently check out in-stock inventory or to submit a loan application. Customers were greeted at these kiosks, which meant that all F&I deliveries were out on the floor. There were no finance offices but instead- business offices that were meant strictly for printing documents.

Most importantly, Auto-Nation was the principal leader of full disclosure selling in finance—a transparent, upfront sales philosophy. Using this philosophy as its key initiative has served them well. In a recent 2013 article posted by Bernie Woodall in Reuters, Auto-Nation earnings beat Wall Street estimates. Michael Jackson reported that he expects “U.S. industry new vehicles sales to reach the mid-15 million range in 2013, which would mark a rise of about 7 percent from last year and the highest sales total since 2007.” Its F&I profits also reached an all-time record, up 31 percent from the fourth quarter of 2011. F&I Showroom’s February 21, 2013, issue reported that Auto-Nation total revenue reached $4.2 billion, up 13 percent since last year.

Those are impressive numbers.You’re thinking that managing $1,300 per car isn’t always achievable, but it might be, if you shared their zero tolerance for deceptive practices. If your customers walk away with any hint of dishonesty, they’ll be on Twitter spreading the word. Your ‘best practices’ application begins with the menu presentation. Being upfront and straight -forward is the way to go for increased profits.

Since implementing menu selling for the Auto-Nation mega giant in 1997, the F&I per vehicle retail increased significantly year after year. We used paper menus. Unfortunately, F&I managers today are using a variation of online versions without realizing that some cut corners. They inspire “rush” service—service that doesn’t spell out all the particular points of full disclosure or just minimize it’s potential.

Inspect the menu version you’re currently using. Does it include the buying numbers, APR, terms and base payment? Is every product listed and itemized? Do you take whatever time is necessary with every customer to clearly disclose what they’re paying for the vehicle and all terms?

Tom Hudson, of F&I Magazine, said, “So, even if federal law and the law of your state does not require the disclosure of an optional products menu, would I advise a dealer to use one and to disclose a “base payment” as part of the menu presentation? Without a second thought.”

Menu selling isn’t a time-wasting chore. Think KISS—Keep it Simple Silly.To be successful with menu selling, be consistent. Establish a well-practiced system that leaves room for customer feedback. Know the terms; define them with clarity. Don’t pack an endless number of products on the menu. A menu is not a scroll. Itemize all products and offer “two” payment options but be careful to not over do it. Be upfront and customer friendly. Offer all the products 100% of the time, but stick to the point. Don’t ramble. Throw out the sales jargon, pitches and props, Get rid of the after-market sales kits on the walls or your desk. Act like the professional you are, but treat your customer with the same courtesy you would your neighbor. Remember, you aren’t a billboard!

If your online presentation takes longer than five minutes, consider utilizing a printed menu that keeps you on track. Most customers would rather work with an F&I manager who presents a paper menu effectively than an automated menu with a 45 -minute video session-tied to it that promises a quick fix. Automation technology might represent the paperless so-called green world, but it won’t ever replace you, “the driver behind the wheel”- customer service that comes with the presentation of menu products on paper that can be held. Think “Barnes & Noble” how many people still enjoy reading a paperback book.

Follow Auto-Nation lead. It has demonstrated convincingly that full disclosure is the future. They have mastered the F&I office, and their ethical standard of business practices prevails. If you aren’t achieving over $1,000 PVR, ask yourself: Is you menu working you or are you working the menu?

F&I TAKES THE LEAD IN 2014

Thu, 19 Dec 2013 00:00:00 GMT

It’s been said that there is infinite difference between mediocrity and superiority. Ask yourself: is your dealership really running as efficiently as you would like it to? If your first reaction to that question is simply that your business has done about as well as expected over the past year, maybe it’s time to re-evaluate your opportunities. Your entire team—from sales to the finance office—are likely expressing your attitude.

So, if you have trouble holding onto good salespeople, if your F&I Manager is performing below the average, if your CSI score is not where it should be or your charge backs are higher than the norm—maybe it’s time to think through your new year resolution?

One of the most common culprits standing in the way of mediocre dealerships achieving superiority is a disconnect between sales and finance, particularly when it comes to compliance. Become your own change master, hone in on F&I compliance to bolster your own expectations and get your dealership on track to propel itself from mediocrity to superiority. Compliance is not a dirty word. A consistent plan often encourages an increase in profits.
Here are some New Year’s resolutions you may want to consider:

1. Resolve to make F&I compliance a priority throughout your dealership .   Compliance with every FTC regulation should be strictly enforced and supervised throughout your dealership. F&I online training can bridge the gaps between finance and sales, ensuring all are synchronized working in unison. Consider appointing a compliance officer keep the politics to a limit.

2. Resolve to make menu selling a priority throughout your dealership . Menu selling is not something that begins in the F&I office. Menu Selling is a dealership philosophy, beginning when a customer sets foot on the property and continuing throughout the entire sales process, in both front and backend negotiations. Menu selling is about being upfront keeping your integrity intact from the beginning of the sale to the F&I department. Maximize profits through a consistent presentation that initiates confidence, creditability and accuracy that instills customer resilience. Make sure to present all your products to all your customers all the time not just because it’s best practice because it creates synergy and diminishes prejudging- which has already been proven to increase product sales.

3. Stay completely up-to-date on compliance and regulations .  In 2011, the FTC received 77,435 automobile-related complaints about new-car and used-car sales. Staying in compliance and training staff will limit or lessen complaints about your dealership.

Every dealership has had three years to study the Dodd-Frank Reform and Consumer Protection Act, and is responsible for ensuring that every single employee understands the fallout from bad decisions.

If you can’t keep up with the regulations, hire an F&I consultant who will keep you up to date and who will vigorously train and retrain your staff. Don’t turn a blinds eye or say, “this will never happen to me”. Throw your ego’s out the window the 80’s mentality has long left the building.

4. Maintain rigorous control over spiff programs . Evaluate spiff programs that aggressively sell one product over another. A spiff can undermine menu tactics. Your team must understand they cannot purposely confuse or otherwise entice customers to purchase products simply because of a spiff. We know payment packing isn’t the right way to go, no shortcuts in discussing payments and rates, no speaking in F&I “code” that isn’t understood by customers, no presentation of the menu before the base payment, and no hedging on the buying terms of the products regarding APR and term.

5. Resolve to manage your reputation . You may have been able to take your dealership’s reputation for granted in the past with no consequences, but the continued growth of social media networks and online business review sites mean that to continue to do so would be foolishly tempting fate. Everyone touched by your business—from customers to employees, past and present—have the capability of spreading negative comments that could tarnish your company’s reputation and put profitability at risk. These same people can also file an instant complaint with the Consumer Financial Protection Bureau (CFPB), which has made the task easier through email complaint processes and use of a “hot line,” all with promised anonymity. If you haven’t checked out the CFPB website put it on your highest priority list. You might say you have no concerns regarding CFPB but if your bank decides to pull back not do business with you that will put you behind the pack of dealers who can offer better financing arrangements to their customers. To be a leader means to act like a leader.

If you have settled for mediocrity in the past and have set the bar low for yourself and your people, it’s time to take executive-level responsibility seriously. Be visible. Ask questions. Raise expectations.

F&I SELL WHAT THEY NEED NOT WHAT YOU WANT

Fri, 06 Dec 2013 00:00:00 GMT

Products equal profits! But you won’t know how much and from which finance and insurance products until you work it out on paper. This is no time for guessing.

This is not the time for strong-arm tactics or pushing products on those who have no need for them. The F&I presentation process requires product knowledge, proper training, regular practice in how effectively to sell off the menu, and sensitivity to customers’ individual circumstances.

Which products are best for customers making a lease, cash or finance transaction? What is your dealership’s percentage of each of these transaction types?

Why is it important to know your percentage of cash sales comparing them to outside finance sources? Perhaps because if your customers obtain outside financing, your F&I manager should be offering a gap policy on a cash menu, especially if you aren’t in a waiver state. If you didn’t know this, now is the time to dig deeper for your preparations.
What products on a cash transaction yield a better result? It depends. Dealers located in Detroit know that, because the area’s weather and climate change is significant, product choices should include paint and fabric protection.
Dealers in Memphis, where the theft rate is growing substantially, usually offer a VIN security product.
Ironically, credit life/disability was the product of choice 20 years ago, less so today. But dealers should evaluate whether such products bring in the same value as before. A credit life or disability product that will significantly increase a customer’s payment may generate a 50% commission.

Dealers in New York, however, will only realize a minimal commission for the same product sale, as opposed to the 100% earned by offering three other valued products while keeping the customer’s payment within reason. Know your numbers. They influence your profit line.

Do many of your customers lease vehicles? If so, does it make sense to offer a service contract as a first priority? In these cases, perhaps you should offer more relevant products that bring profit to your bottom line, without significantly increasing your customer’s payments.

How about a tire/wheel maintenance, paint/fabric protection, dent/ding repair coverage or key replacement?
Dealers from every state and region experience different results. The size of the market, the brands being offered, inventory, the general state of the local economy affect the number of vehicles and products sold.

Dealers, therefore, have wide-ranging expectations. But, the underlying result is the same. What percentage of sale should you expect and at what profit? How should you price each product and what is your return on investment?
Your customers can only afford so much. Knowing which products will benefit them the most and how these ultimately affect your backend profit and support your reinsurance program are the keys to your success.

Products that carry a high claim-cost factor may not be worth consideration for some dealers or to those who have a reinsurance program. Some dealers sell high-mileage vehicles, while others don’t, because of their location and the customers demand for more utilitarian vehicles.

Customers who live in Eastern cities have less use for a big car, because they have public transport or drive shorter distances. Larger, more rugged vehicles are needed by those who live in rural areas or in Western states where there are greater driving distances.

Carefully evaluate your market and your customers’ needs. If your dealership sells more high-mileage cars, know what kind of service contract programs to offer.

Know your products and ones that are more suitable than others. Offering a service contract that costs about the same as the car may not be wise choice.

As you add products, ask yourself if one could hinder or help the sale of another.

F&I trainer Rebecca Chernek is CEO of Chernek Consulting, LLC. She can be reached at 404-276-4026 and becky@chernekconsulting.com

SALES TRANSPARENCY ISN’T PASSE`

Wed, 21 Aug 2013 00:00:00 GMT

Transparency is the buzzword in political discourse these days. #Transparency in auto dealership sales methods has been the buzzword for more than a decade. Although it’s ignored by far too many working in sales and #F&I, it has taken on an increasing importance that shouldn’t be overlooked.

Why?

Because customers can control the message about your brand across the broad spectrum of social platforms. Most social apps are available on their mobile smartphones already, and the rest will be by the end of the year. Customers use them.

Because, according to Reuters’ August 2013 statistics, more than 128 million Americans visit #Facebook every day, and overall mobile usage exceeds computer ad traffic (your website). Wireless Intelligence forecasts that mobile social users will grow to 4 billion within the next five years. Howard Schultz, the CEO of Starbucks, said, “Mobile can’t be an afterthought. It has to be at front of the table.”

What’s this data got to do with dealership #transparency? Everything. While the vast majority of dealerships have an online presence through a website and have set up methods for providing generalized information about their products and services, too many are still mired in gamesmanship bait-and-switch schemes when it comes to actually selling a potentially valuable customer a vehicle for the price quoted online.

Hiding behind a smile and fast talking in the #F&I office doesn’t work on social media, where customers in increasing numbers prefer to do business. Customers let their fingers do the walking, if they suspect an insincere sales pitch. And they don’t keep their disgust to themselves. They share it. Immediately.

Jez Frampton, CEO of Interbrand, the world’s largest consultancy specializing in brand strategy and analytics, says “It’s no longer B2C; it’s now B and C.” Unless the dealership’s online team can conduct honest communication, the potential for fraudulent practices can get out of hand, all in the name of increasing profits. All it takes is one savvy customer to catch on or become burned by an overly zealous sales or finance staff member who plays the “gotcha games” of past sales maneuvers, and an angry complaint is sent out via #Twitter or to a plethora of #Facebook friends. The derisive comment about your dealership and staff can go viral in minutes and raise havoc. This happens every week to any sized business in every town or city nationwide.

It can happen to your dealership, if you aren’t paying attention and mandating strict adherence to transparency in sales by all staff members. It must be a priority. Failure to enforce this policy could ruin your good name quicker than you can react with an apology. Competition for sales is as close as a finger touch on a smartphone screen and the media is quick to listen and report.

Online and in-house customers won’t tolerate even a hint of #bait-and-switch sales strategies. They want #honesty, #integrity, a respectful dialogue that focuses on their particular needs, and superior customer service. They actively seek the opinions of current or former customers, rather than relying on a dealership ad.

It no longer works to tell customers your dealership is upfront and transparent in sales procedures. Actions still speak louder than words. At a recent sales conference on #transparency-selling processes, a high-volume dealer insisted that the #box-closing method he’s always used was “fair and upfront.” For readers who aren’t familiar with the term, a box closing is when the customer is closed on price, and the #F&I manager closes on the payment. The payment is presented to the customer through payment packing for product options, commonly undisclosed.

A car dealership group with seven stores in Dayton, Ohio, is currently dealing with 16 civil lawsuits and five other complaints alleging “unfair and deceptive business practices.” The BBB is investigating and intends to lower the dealership’s A+ rating significantly. The finance manager was either fired or retired from his position. Customers are no longer biting their lips when their expectations aren’t met in the finance department.

A couple other old favorites of “experienced” personnel in sales and finance to deceive customers into buying more than they want include four-square and trade-difference techniques.

The four-square is confusing and manipulative and designed to entice customers into paying more and not realize what’s going on until they’ve unwittingly signed a contract. The sales manager disappears just long enough to scribble a few more figures in the four boxes drawn on a paper and returns to say he’s managed to get the monthly payment down to “$260, a mere $10 more” than the customer wanted, but that was the best he could do. “Close enough, right?” he’ll add, while nodding and smiling. The customer doesn’t realize she’s just handed the dealership several hundred extra in profit, when that $10 monthly payment bump is amortized over a 5-year loan. How can this system be called transparent?

In a trade difference the customer will close on the difference between the cost of a different vehicle less his trade, but won’t understand all the numbers when they’re computed in a future monthly payment rather than a total figure. If such a payment is handled in the #F&I office, it can open a dealer to potential unethical practices charges.

Compliance to federal and state regulations and business practices doesn’t begin in the #F&I office; it begins in the dealership office and on the sales lot at the meet-and-greet or on the website’s communication tools. #Transparency is a store-wide commitment. #Menu selling brings up net profits it doesn’t have to involve breaking laws or customer trust.
Auto giants, like #AutoNation, #CarMax, and #Group 1 enforce a full, unabridged menu selling presentation that contains all the appropriate disclosures in clear and easily-understood language. Their shops continue to outperform those of most dealers nationwide. For them, transparency buys customer trust, loyalty, return business and social media praise.
Transparency is the driver to whether or not the dealer maintains community and customer trust or goes out of business under the blight of social media chatter.

#Transparency is about being consistent in the sales process from start to finish, with all the cards on the table. It’s about making the conscious decision to ensure every customer has an incredible buying experience, determined from a value-driven proposition.

#Transparency means customers understand all the buying numbers prior to their transaction going into finance.
If the Consumer Finance Protection Bureau (CFPB) isn’t already knocking at your door, make it your priority this week to review the law, your written sales transparency policy and actual wink-wink practices, and all-company knowledge. Then send out a stern reminder that transparency in all sales and finance transactions will be vigorously enforced. All it takes is a single unhappy customer tweeting a single message or relating an experience of unsatisfactory service on #Facebook to result in citywide exposure and sales ethics discourse.

Think about this. Transparency in car sales is a choice made by individuals. “Whoever is careless with the truth in small matters cannot be trusted with important matters.” ―Albert Einstein.

Rebecca Chernek is an Up To Speed Guest Expert in the area of automotive retail F&I best practices. She’ll be conducting her “Closing Tools Mastering Menu Sales Workshop” in October. To find out more or to contact Rebecca Chernek directly, call 404-276-4026 or email her at becky@chernekconsulting.com .

A MESSAGE TO DEALERS: CHANGING THE INDUSTRY CULTURE BY REBECCA CHERNEK

Tue, 13 Aug 2013 00:00:00 GMT

I recently read an article written by Jeremy Cato, a multi-award-winning journalist and senior writer for the Globe and Mail. Twice, he was named the automotive journalist of the year. His credentials are sterling.

Mr. Cato attended the February 2013 International Autoshow in Toronto and was guest speaker to a large group of car dealers. He was asked, “How can dealers be better at serving their customers?”

He looked over the room and saw nothing but middle-aged men. His response was the same as many of us who have shared his 25 years working in the industry. “Hire more women for your sales force and find a way to keep them.”

Cato advocates having 30% of the sales force be women. So do I. And dealers nationwide should have a woman in the #finance department as well. A well-qualified female #F&I manager has never been more important than right now. This truth will become increasingly essential by 2014 and beyond.

Why? Because your buyers are Generation Y and M women, and they have a different life plan than Traditionalists, Boomers, or Generation Xers. Generation Y, also known as the Millennials, is the fastest growing segment of today’s workforce. And, according to Levi’s survey of 1,000 female Millennials at the end of 2010,

96% list “being independent” as their single most important life goal,
87% define success as being able to shape their own future, and
only 68% say becoming a mom is on their priority list.

Why is this such important data for #car dealers to ingest and diligently digest?

Because knowing this and doing something about it for the long term will positively effect profits, elevate community respect, and communicate the message that actions speak louder than words. Women on the floor demonstrate commitment.

Because a recent survey showed that 74% of these #Generation #Y and #M women feel misunderstood by automotive marketers, yet they account for the purchase of 65% of all new cars and 53% of used cars, and they influence 95% of all auto purchases. (Road & Travel Magazine) Read that again!
Generation Y/M women are a significant number of the 80% of all women who control national spending. They are vocal about their likes and dislikes, have grown up with computers and cell phones, and have huge (and valuable) numbers of social media contacts.
Consider these facts:

56% of U.S. women use social networking sites daily.
58% of Facebook users are women.
64% of Twitter users are women.
82% of Pinterest users are women. (Source: Mashable, 2012)

Why do these social statistics matter? Because if understood, they should influence how dealership marketing is done in 2013 and beyond. Social media marketing is no longer a choice; it’s a must. Generation Y/M women will someday be leading the majority of American businesses. Establishing their brand preference and store loyalty should start early, and social media marketing is a proven way to do this.

Dealers should understand that the above statistics will account for a whopping increase in their female customers’ buying power, especially if they’re using social media to communicate with these women and their family, friends and neighbors in an ongoing dialogue as part of their new social marketing plan.

Generation Y/M women will click on the dealer’s website, if they like the tone of the dialogue and if the other participants pass on praise. If the dealer’s website is designed to hook these independent women with easy-to-find and understand information, they’ll be more apt to call the dealership for specific facts. If the salesperson who answers the phone provides superior customer service, is thoroughly trained and knowledgeable, and creates such a trusting rapport with these callers that they visit the showroom, wise dealers will ensure that these women do not see only sales men.

One more thing. Statistics show that women prefer to make such an important purchase as a car from women. They trust them. They speak the same language. And when women buyers see a significant number of saleswomen in the dealership and are ushered into the office of a female #F&I manger to seal the deal . . . they are far more likely to make additional purchases and that should make everyone in the dealership happy.

Any dealer reading this message should first make an honest personal assessment that includes identifying generational blind spots. Times have changed. There are literally thousands of Generation Y/M women with the sales experience, personality, drive, education, ability to teach and lead and who are interested in establishing working careers in auto dealerships, not temporary jobs.

Women in sales and finance can and will make a huge difference. Find them. Train them. Encourage them. Support them. Praise them. Start now to change the good-old-boy auto dealership culture, one shop at a time. For the long term.

TO WOMEN WITH A PASSION FOR F&I

Thu, 02 May 2013 00:00:00 GMT

EMBRACE CHANGE

The glass ceiling for women’s acceptance in the finance industry was shattered over a decade ago.

According to the 2012 Catalyst Census of Women Executive Officers and Top Earners, which counts the number of women in upper management in Fortune 500 companies, women comprise over 18% of all executive officers in the finance industry, and 19% of board directors in the finance and insurance industries in Fortune 500 companies.
BUT . . . that glass ceiling is only slightly cracked for F&I women in the automotive industry.

Why is this true? It’s no secret that the auto industry worldwide has been male-dominated since the birth of the four-wheeled, horseless carriage. Ownership of auto makers is passed down to the sons and to their sons in Japan, Germany, France, Sweden and in Canada; this practice has been followed for generations even in the United States.
Some 95% of the country’s 20,000 auto dealers who belong to the National Automobile Dealers Association are male.
While a very small percentage of women has the financial means to become the owner of a GM, Ford, Chrysler, Saab or Toyota franchise, an increasing number are rising in the ranks to positions of valued leadership and respect in these manufacturers’ offices.

This includes the position of F&I manger at a local franchise dealership.

Why should this perk up your interest?

Because if you have the inborn drive to set goals, to meet and beat challenges along the way, and to be a leader as well as a team player, you can be one of the women to shatter the glass ceiling in what still remains a prominently male domain.

Challenges will be part of your F&I experience in a car dealership, but the field is wide open and you could become a role model for many more women in finance to follow in your footsteps.

It is part of car “culture”—still in practice, spread like dandelions in your front yard, and written about by every journalist on the subject—to repetitively say that many women start out in car sales and with their awesome success are asked by the dealer to step into the position of finance manager, but few stay.

The reasons given are always the same: no training for the position, no ongoing training, little cooperation from the predominantly male sales personnel, long inflexible hours, continued disrespect and a lack of dealer willingness to change the culture to be more inclusive of women outside office workers or to change former methods to reach out to women buyers in the community. When lumped together, they discouraged open dialogue and widened the unspoken impression that female finance officers are inadequate.

Here’s some advice given by two widely dissimilar women. Former First Lady Eleanor Roosevelt, who is still famous for her role as women’s advocate, said, “No one can make you feel inferior without your consent.” Dolly Parton, who is one of the most successful female recording artists of all time and an astute businesswoman, said, “If you want the rainbow, you’ve got to put up with the rain.”

In other words, take a position as F&I manager at a car dealership with your eyes wide open and fixed on your ultimate goal: to not only meet the culture challenges, but rise above them so fast and with such dignity that you become an influential member of the dealer’s inner circle. One that has numbers to prove your value and leadership skills that have every member of the sales team eager to become your best friend.

Study; ask for training; provide it for all the sales staff and have weekly meetings with them to share successes and failures; learn not only the names of the office staff, but exactly what they do and how and why. That’s what leadership in the finance office requires. More than words. More than overblown reactions to a culture that is waiting for you to show them how to embrace change. It requires a concerted plan and actions that drive your ultimate success. Oh, and see that the dealership’s bottom line soars and those males in sales see their paychecks grow like a snowball rolling downhill.
Then the statistics will change and the article topics will reflect it.

Think Big . Start Small.

CHERNEK CONSULTING, LLC. (CCI) HAS RELAUNCHED ITS RV DEALERSHIP F&I TRAINING

Mon, 01 Apr 2013 00:00:00 GMT

CCI ‘s Program Ensures RV Dealerships Stay Up-to-Date

SUWANEE, GA—April 1, 2013 : “We’re back in full force, and bigger and better than before the U.S. recession,” says Rebecca Chernek, the founder and CEO of CCI.

“We’ve been celebrating continued success since our Grand Opening in 2001, still offering intensive, widely acclaimed workshops for RV sales and finance managers, personalized in-store dealership consultation and training, and a wide range of ongoing virtual F&I training, but now we’ve upgraded our training methods to provide every dealership with even better process improvement and profitability.”

Chernek adds that attendance of only the primary F&I manager at a two-day workshop isn’t enough anymore.

“Everyone on an RV sales and finance staff needs to be on the same page,” she says. “We guarantee that members will gain knowledge and learn new skills for more effective performance without ever leaving the dealership. Both our on-site and always-available virtual service ensure that the staff, the dealership and the customers benefit.”

Chernek emphatically states that CCI’s training isn’t a “cookie-cutter, same-program-for-everyone” service, since an RV dealership’s locality is different and has unique problems.

“We’re experts at problem-solving,” says Chernek. ”And, since staff members have diverse personalities, talents and capabilities, we’ve become specialists in clear communication. No one is left behind.”

CCI has 25+ years of experience in the car industry and has taught hundreds of customers. The company has worked for years with industry leaders, including JM&A, AutoNation and The Warranty Group.

Rebecca Chernek comes from an automotive retail background in sales and general management and as a director of finance. She’s a pioneer of menu selling and the implementer of the menu method back in 1997 for AutoNation, the #1 retailer. She shares all her experience and expertise and provides references on request.

“Because some RV dealerships are still struggling, due to a lagging economy, CCI offers a complimentary analysis of any F&I department via web. Then, with distinctive goals in mind, we can strategically implement the process and training of the staff on products and presentation to obtain the impact and outcome required for growth in size and profitability. Our mantra remains: Increase front and back profits while limiting liability!”

CCI is not a compliance-training company, but is fully knowledgeable about the rules and regulations and what it takes to survive a compliance audit.

Interested RV dealerships can call Chernek to discuss its highly affordable prices. “We treat every customer like royalty and establish firm relationship bonds that respect the trust and loyalty that always ensues,” Chernek says.

# # #

About Chernek Consulting, LLC.

Chernek is an AFIP industry member. As a consultant, trainer, and nationally renowned expert in F&I and sales procedures, her company, CCI, has assisted hundreds of car, RV, and marine dealerships throughout the United States and Canada in streamlining their processes and closing techniques that significantly raise their bottom profit line. Chernek writes regularly for NCM as a guest expert writer F&I Management Technology and others. For more information, visit www.chernekconsulting.com or contact Becky at 404-276-4026 or bchernek@gmail.com

IS YOUR MENU WORKING YOU OR ARE YOU WORKING THE MENU?

Wed, 20 Mar 2013 00:00:00 GMT

AutoNation USA, the #1 publicly owned retailer, opened it’s doors as a mega “one pricing” pre-owned operation in 1997. It built elaborate showrooms; county records show one was 218,000 square feet. The showrooms included a café, a playroom, and an aftermarket display platform.

Kiosks with computers were placed throughout the store enabling consumers to efficiently check out in-stock inventory or to submit a loan application. Customers were greeted at these kiosks by F&I personnel, which meant that all deliveries were made out on the floor. The finance office was used strictly for printing documents.

Most importantly, AutoNation was the principal leader of full disclosure selling in finance—a transparent, upfront sales philosophy. Using this philosophy as its key initiative has served them well. In a recent 2013 article posted by Bernie Woodall in Reuters, AutoNation’s earnings beat Wall Street estimates. Michael Jackson reported that he expects “U.S. industry new vehicles sales to reach the mid-15 million range in 2013, which would mark a rise of about 7 percent from last year and the highest sales total since 2007.” Its F&I profits also reached an all-time record, up 31 percent from the fourth quarter of 2011. F&I Showroom’s February 21, 2013, issue reported that AutoNation’s total revenue reached $4.2 billion, up 13 percent since last year.

Those are impressive numbers.

You’re thinking that managing $1,300 per car isn’t always achievable, but it might be, if you shared their zero tolerance for deceptive practices. If your customers walk away with any hint of dishonesty, you can almost assure yourself of a chargeback. Your ‘best practices’ application begins with the menu presentation. Where do you stand? Do you disclose every single buying term before presentation of products? Do you try to work the system – and fail to realize that full disclosure selling is the means to significant sales achievement?

Since implementing menu selling for the AutoNation mega dealer in 1997, our division has presented thousands of menus on the showroom floor. The F&I PVR increased significantly year after year. We used paper menus. Unfortunately, F&I managers today are using a variety of online menu versions that inspire “rush” service—service that doesn’t present every part of the menu or full disclosure 100% of the time. The menus are super streamlined and programmed from one software provider to another; they make a list of claims about your potential to significantly increase your F&I profits, if you use their software. You might. For a time. Especially if you don’t fully understand the reason behind full disclosure selling and why, if the terms are removed from the menu verbiage in the software menu version, the dealer is open to potential law suits.

Inspect the menu version you’re currently using. Does it itemize buying numbers, APR, terms or base payment of the vehicle purchase? Is every product listed with full discloser? Does your state (like CA) require the discloser of the base payment prior to presentation of products? Do you take whatever time is necessary with every customer to clearly disclose what they’re paying for the vehicle and all terms?

Tom Hudson, in F&I Magazine, said, “So, even if federal law and the law of your state do not require the disclosure of an optional products menu, would I advise a dealer to use one and to disclose a “base payment” as part of the menu presentation? Without a second thought.”

Menu selling isn’t a time-wasting chore. Think KISS—Keep it Simple Silly.

To be successful with menu selling, be consistent. Establish a well-rehearsed system that is interactive with your customer. Know the terms; define them with clarity. Don’t pack an endless number of products on the menu. Stick to basics. A menu is not a scroll. Itemize all products and offer two payment options. Be upfront and customer friendly. Offer all the products 100% of the time, but stick to the point. Don’t ramble. Throw out the sales jargon, pitches and props, Get rid of the after-market sales kits on the walls or your desk. Act like the professional you are, but treat your customer with the same courtesy you would your neighbor. Don’t think of your menu presentation as a gimmick.

If your online menu or next best menu presentation takes longer than five minutes, consider utilizing a printed menu that keeps you on track. Remember, less is more! A delivery should take no more than 30 minutes Most customers would rather work with an F&I manager who presents a paper menu effectively than an automated menu that promises a quick fix! Automation online presentation technology might represent the paperless so-called green future, but it won’t take the place of hands-on customer service that comes with the presentation of menu products on paper that can be held.
Follow AutoNation’s lead. It has demonstrated convincingly that full disclosure selling is the driver behind their success. They have mastered the F&I office, and their ethical standard of business practices prevails. If you aren’t achieving over $1,000 PVR, ask yourself: Is you menu working you or are you working the menu?

FINANCE & INSURANCE TRAINING: GET MORE PROFITS FROM YOUR PRODUCTS

Sat, 05 Jan 2013 00:00:00 GMT

If you’re looking to see profits, you need to have the products people really want and need. You also need the proper finance & insurance training. Don’t just guess and assume you want what the public wants. Working things out on paper can show you which F&I products you can offer that will bring in a lot of business for your company.
One of the things you need to be careful about when you’re selling finance and insurance products and services is the way you present what you have for sale. If you’re trying to strong-arm your potential customers or pushing unneeded products on them, they aren’t going to be receptive to that. When you present F&I information, you need proper training and good product knowledge.

Practicing often also matters, so you know how to sell what you have on your menu. The more sensitive you are to the individual circumstances of your customers when you’re menu selling, the more likely you’ll be to see sales and profits increase.

Ask yourself a couple of important questions before you make your sales pitch, too. Consider:

What kinds of products are the best for your customers who are making a cash transaction? A finance transaction? A lease?

What has been your company’s percentage of each type of these transactions.

Until you know these percentages and can answer these questions, you aren’t completely prepared to offer menu selling to your customers and potential customers. If you know the percentage of outside finance sales to cash sales, your F&I manager can offer a gap policy on the cash menu. If you aren’t in a waiver state, that’s highly important. If you weren’t aware of this issue before, your preparations need to be stronger and some F&I training might also be in order.

Sometimes, a cash transaction yields a better result than one that’s financed, but that depends on the product. In Detroit, dealers know that because they know that product choices need to include fabric and paint protection. The climate and weather changes are significant in that part of the country, so it’s important to insure against those kinds of things.

In Memphis there is a different issue – one of security. The theft rate is high there, and it continues to grow, so dealers offer a VIN security product on their menu.

Another thing dealers should evaluate when they’re considering F&I training and what to offer to customers is credit life/disability insurance. Twenty years ago it was the product to sell. Today it’s not as popular but there is still a big market for it. If there are credit life or disability products that will raise the customer’s payment, the commission on those products could be as high at 50 percent.

The cost of the product and the extent of the commission can vary depending on where a dealer operates. In New York, for example, the commission on the credit life/disability product would be nowhere near 50%. Instead, nearly 100% could be earned on other valuable products that would also help the customer keep his or her payment low. You must know your numbers, because they greatly affect the profit you’ll receive. If you’re unsure about how to calculate these kinds of things, some F&I online training can help you be more successful.

So many of the decisions you’ll have to make each day will depend on your individual business and your location. For example, do you have a lot of customers who lease vehicles? If you do, it won’t make sense for you to offer a service contract as a high priority. Instead, your focus should be on products that are relevant to your customers and that will help you bring in more profit.

Consider paint and fabric protection, tire and wheel maintenance, key replacement, or dent and ding repair coverage as options for your vehicle lease customers – but keep your prices fair. If you offer products that increase the customer’s payments too much, you’ll actually end up losing in the long run. Those customers will start to look for other options that don’t include you. Customer retention is important.

You’ll see different kinds of results depending on where you offer your services. The brands and inventory you have, along with the local economy and the market size, will also affect your bottom line. The more vehicles you work with and the more products sold, the better you’ll do.

The expectations that the dealers have are wide-ranging, but the results they see are similar. The percentage of sales they want and the profit margins they look for helps them decide how to price every product and what kind of return on investment they want and need. Customers are all limited on what they can afford, so finding them the best deals and keeping them coming back is a great way to build your backend profit and your financial success.

Contact Rebecca Chernek for Customized In-Dealership F&I Training. Increase your profits limit your liability.

DEALERSHIPS CAN’T HIDE SHADY SALES PRACTICES FROM SNITCHERS

Sun, 11 Nov 2012 00:00:00 GMT

Henry Ford once said, “Failure is simply the opportunity to begin again, this time more intelligently. If everyone is moving forward together, then success takes care of itself.”

If your dealership isn’t running as smoothly as you’d like, if you can’t seem to hang on to the good salespeople, if your finance officer is turning in sloppy paper work, if you’re getting too many complaints from customers . . . maybe it’s time to start from the beginning. And while you’re at it, dispel a few myths that have clouded your thinking.

Myth: Compliance begins and ends in the finance department. It can be manipulated.

Fact: Compliance with every FTC regulation should be strictly enforced and supervised throughout your dealership.
Myth: Menu selling takes place only in the finance department.

Fact: Menu selling is a dealership philosophy. It begins when a customer sets foot on the property and encompasses the entire sales process, in both front and backend negotiations. It’s about being transparent about everything discussed after “hello.” Transparency means clear, obvious, visible . . . honest.

Myth: There’s little to no supervision of compliance; it takes forever for a new regulation to be enacted. It’s too hard to keep up with them.

Fact: When the Dodd-Frank Reform and Consumer Protection Act was signed in July of 2010, it granted the FTC power to enact new rules every year, rather than every seven, and to regulate dealer financing. The FTC was also given power to turn over some of its former duties to the CFPB (Consumer Financial Protection Bureau), which is encouraging consumer and employee complaints. If you can’t keep up with the regulations, hire an expert who can and vigorously train and retrain your staff.

In 2011, the FTC received 77,435 auto-related complaints about new-car and used-car sales! In addition, consumer filed complaints about car leasing and rental, loans, parts and repairs, warranty plans and services in general. Compliance and staff training will limit or lessen complaints about your dealership.

Myth: You’ve gotten away with “doing your own thing” in the past and nothing has happened except more sales and higher profits.

Fact: Those days are over. The Internet, Facebook, Twitter, Yelp, and a host of other tools enable your current customers, potential customers who were dissatisfied with initial service and left without making a purchase, or one of your own employees or ex-employees to spread negative comments about your service or policies that can injure your community reputation or profitability; they can also file an instant complaint with the CFPB, which is making it easier for them to accomplish through an email or use of a “hot line” and with promised anonymity. Think about that!
Myth: You haven’t had time to read through the documents. There are too many.
Fact: Make time! Every dealership has had two years to study Dodd-Mead and the FTC, local and state regulations. No excuses are accepted. Every dealership is wholly responsible for ensuring that every single employee who enters through its door understands the rules and regulations and what could happen to their job and to the dealership if they’re not followed. The buck stops at the top.

Then with your sales and finance managers. Allow no spiff programs to aggressively sell one product over another; no purposely confusing customers into buying a car or products they don’t want or can’t afford; no payment packing; no shortcuts in discussing payments and rates; no speaking in F&I “code” that isn’t understood by customers; no presentation of the menu before the base payment; and no hedging on the buying terms of the vehicle with APR and term.

Be visible. Observe what’s going on. Ask questions. Examine paperwork.

Finance should no longer bear total responsibility for compliance and menu offerings. Make it a dealership philosophy and encourage cooperation between sales and finance. Then you won’t spend sleepless nights wondering if and when the CFPB will show up at your door or if your doors will close. You’ll have no snitches.

CCI-CLOSING TOOLS MASTERING MENU SALES-NOV. 13TH-14TH & 15TH-ATLANTA, GA

Tue, 09 Oct 2012 00:00:00 GMT

Managers who have applied sound and well-practiced menu selling techniques, with regularity, have learned that offering every product to every customer 100% of the time increases product sales simply because the products are offered without prejudice. However, they have also learned that some customers are not as easy to close on products, no matter what kind of menu or procedure they use. It is important for every manager to learn how to overcome the “no” factor!

No matter how many years managers have spent in the automobile industry, it usually makes them feel uncomfortable when they hear customers say, “I just want to stick with the base payment.” Many hem and haw, searching for the words to convince them otherwise; many others simply give up and close. They’ve gone through their routine too many times and know that for certain customers, it is futile to proceed with the menu presentation. Some have never learned how to overcome the fear that rises with certainty, every time they hear such a firm statement. Fortunately, there are tools any manager can learn, to effectively squelch personal fear and sell the reluctant customer on a product. This means you! You can acquire new tools and learn to use them successfully in only a short time.

Why is this so important? If you don’t have a collection of effective closes in your toolbox, how can you expect to handle the plethora of objections that come your way every day? If the truth were told, you’d have to admit that you lose far too many sales, because of your lack of closing skill! In this highly competitive economy and industry, you can no longer afford to remain static. Did you know, for instance, that the simple use of visuals compliments most objections? Visuals are such an important part of closing the sale, in fact, that the more you use, the more products you are likely to sell. Do you use visuals when you present your menu of products? Do you use them effectively? Wait! Do you even know what the term “visuals” means?

The first (and most basic) tool you need in your arsenal, of course, is to recognize that your customers may simply be responding to a base payment option, because they haven’t received enough information about certain products. They don’t see the value. They don’t understand the consequences of not owning the product. They are confused. This doesn’t have to happen. Confusion can be overcome, if you conduct a more thorough interview. Keep in mind interview doesn’t mean “interrogation”! During the “review” process, do you discuss your customers’ driving habits how long they plan on holding onto the vehicle do they plan on doing the maintenance at the dealership? Perhaps they might have more downpayment then what the sales consultant offered. How long have they been employed at the same place of business? Are they home owners or renters? Do they value their vehicles and maintain them properly? Have they ever had trouble getting a loan? The more information you gather during your initial meet and greet, the more easily you will be able to overcome product objections. It’s about trust and gaining creditability.

The CCI Closing Tools Workshop is geared towards helping you increase your abilities to close any sale. We provide an abundance of information and a long list of closing tools that prepare you for incalculable success. We provide details and the right words. We provide the most effective processes and proven techniques. We are confident that, with our training, you can become the best finance manager in the industry! Remember, presenting the menu is one thing, but closing the deal is quite another matter. You know how to present. Now, you need to learn how to successfully close. No more excuses. Don’t put off until tomorrow what you can learn and accomplish today!

You got to take the car out of park to succeed.

TREAT THEM AS INDIVIDUALS

Fri, 14 Sep 2012 00:00:00 GMT