Way back in 1971, C.P. Snow wrote about technology in the New York Times. He said, “Technology... is a queer thing. It brings you great gifts with one hand, and it stabs you in the back with the other.”   Many dealers are voicing that sentiment these days. Far too few have done anything about it. Some have learned to use computer software with skill. They use the apps on  iPhones, iPads, and Blackberries. They have created an effective Web site. They use  FaceBook and Twitter and LinkedIn for social networking. For others, these are merely words and technologies that test their ability to conduct both business and their private lives. Dealers, already feeling the brunt of the two-plus year recession and massive changes in the car industry, are becoming increasingly concerned about their ability to not only keep up, but to even remain in the playing field.   Why should dealers bother with such things? Isn’t the old way good enough...

Dozens of newly created automated menu systems are popping up on Internet sites and through sales vendors claiming their use will vastly increase dealer profits while limiting liability. Of course each system is “the best one available!” Can you believe the advertising hype?   Most F&I trainers support at least one or more of these systems and the vendors who sell them. Some have even become vendors themselves. They say they can guarantee a substantial increase in any dealer’s bottom line, IF the dealer signs up with them today! I fully support the idea of an automated menu system, but my support comes with words of caution. “No technology will ever replace an enthusiastic finance professional who consistently offers their products while being interactive with the customer and determined to enhance their overall buying experience.”   If your finance manager doesn’t completely understand the concept behind menu selling, it...

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.” ...

You would think with the magnifying glass on car dealerships around the country today, F&I managers would take heed of the importance placed on full disclosure selling. You would think they would understand why disclosing a base payment, the APR, the term and all buying numbers prior to offering other product options is critically important. Unfortunately, there is still confusion regarding “full-disclosure” menu selling. Utilizing the menu to offer 100% of the products to 100% of their customers 100% of the time is good business . . . BUT, it’s not the entire story.