3 Ways to Convince Your Customer to Finance Through Your Dealership
Article Highlights:
- Most people think they can get better financing options at their bank.
- Be transparent with your customers.
When a friend of mine bought her car a few months ago, her mind was set on financing the purchase through her bank. She has a good relationship with her bank and didn’t think the dealership could compete. Also, she really didn’t want to spend extra time at the dealership.
Many consumers today are just like my friend. Since they go to the bank more often than they go to a dealership, they trust they will get a better deal at their bank.
How can dealerships compete with that? Here are three ways:
1. Present options
No matter what budget customers have set, they want the best deal they can get. When possible, present a finance and lease alternative. Never assume the customer knows what different financing options are available. Today’s super low interest rates and other OEM incentives provide an opportunity to convince a customer to finance at your dealership.
2. Make it easy
As early as possible, make customers realize how financing with your dealership is going to be an easy process. The customers’ experience, starting from your website, to the moment they are greeted by a salesperson, affects the F&I office’s ability to sell financing. Explain how you will be handling everything, which will make the process go much quicker. Highlight the convenience of obtaining financing in the same place they’re purchasing their vehicle like a one stop shop.
3. Be transparent
Unfortunately, many customers are suspicious of dealerships and think they are trying to trick them. Be as transparent as you can with your customers. For instance, explain how you are able to provide more financing options and competitive rates because of your relationship with different lenders and OEMs. Technology can also play a key role in streamlining the buying process and making it more transparent and engaging for the customer.
Conclusion
When financing the purchase of their vehicle, customers want at least one of three things: the best deal, convenience, or peace of mind. If you give them one or two of these, you will likely have the customer finance through your dealership. If you give them all three, you will likely have a customer for life.
Ultimately, it boils down to trust. If you have rightfully earned your customer’s trust, they will choose you every time.
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Product Planning, Reynolds and Reynolds
Anne Ravensbeck is a Product Planning manager for Sales and F&I applications at Reynolds and Reynolds.
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