Houston Independent Automobile Dealers Association December Issue: Tax Selling Season is Soon Upon Us | Page 22

work and submission of those deals will result in turndowns.

3. Asking for a Down Payment Before the Test Drive

Many SF managers properly complete the credit interview before suggesting vehicles. The one question I recommend they avoid is, “How much do you have for a down payment?” There is a time and a place to ask for the required down payment, and the interview is not it. You must build value in the vehicle by taking the customer for a test drive and allowing them to take mental ownership of the vehicle.

By asking too early, you lose any shot at building rapport and trust. And what if they say “$500” or “Nothing”? Those are common replies, and they can only lead to confrontation. Confrontation is a deal killer. If it gets to the desk and the deal requires $3,000 down, now what? The customer will feel that the salesperson is deaf or just stupid. Either way, their credibility is destroyed. If a deal is ultimately going to happen, it won’t be easy.

I certainly don’t mind when a salesperson notes whether the customer makes a comment about having money to put down and informs the desk. Just don’t ask the question in advance of showing vehicles.

2. Failing to Do the Math

More times than I can count, when I asked for a customer’s income during the credit interview, they got it wrong. Sometimes they overstated it, often unintentionally, based on the seasonal overtime reflected on their most recent pay stub. Simple math showed that the figure didn’t align with their year-to-date income.

But they just as often understated it. I remember a UPS driver who estimated he made $800 a week. “On a full monthly schedule?” I asked. “Aren’t you making about $25 an hour?” He was, and when we added it all up, we found he was making more than $1,000 per week. Considering his mortgage and other obligations already totaled $2,000 a month, that made a pretty big difference to the finance company.

Do the math. You will avoid unnecessary turndowns, restrictions and unpleasant surprises during the funding process.

1. Working Deals to Death

This pitfall might seem strange, since I am always encouraging dealers and managers to work them all. But at tax time, deals that should work but just won’t go through should at least be put on the back burner in order to get easier deals through the system. There is enough stress and commotion in the job. Learn to prioritize deals. Work every deal to a conclusion, but learn the difference between being diligent and beating a dead horse.

Until next month, great selling!

By Greg Goebel

Greg Goebel is the CEO of DealerStrong and the industry’s leading special finance trainer since 1989. He is an 18-year former dealer principal and a highly sought-after speaker, author and consultant. [email protected]