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Michael Hirschfield

Michael Hirschfield President

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Special Finance Sales Process

Do you have a defined Special Finance Sales Process? Most Dealerships do not. Unfortunately, many Dealerships follow the same Road to the Sale that guides all the sales activities in their stores.As you know, the primary function of this Road to the Sale is to generate excitement to buy today. The more excited the customer is to buy, the fewer the objections, and the easier it is to have a successful numbers presentation and ultimately close the deal…right? Well....the fact of the matter is this type of excitement has little affect in boosting success with Special Finance Deals, and can actually hinder success in the deal all together.

Special Finance should be different. Special Finance should be utilized as a solution. As you know, a solution is designed to fix a problem. The standard Road to the Sale is based on the customers' wants. To amplify your success in Special Finance your Dealership needs a defined Special Finance Sales Process that entices the customer to focus on fixing their problem versus satisfying their want. So what is their problem? Credit!

If I ask a Dealer what is holding them back from delivering more Special Finance Deals, I normally hear one of the following: The banks aren’t buying anything, no one has any money to put down, or I don’t have the right inventory. Dealers often don't realize that these complaints are a direct result of their Special Finance Sales Process or lack thereof. These same Dealers are the ones that bring a Special Finance customer in and ask them what they want to drive, what they want to put down, and what they would like their payment to be. In this way, a delivery is dependent upon finding an approval to meet the customers wants, and being dependent on finding approvals ultimately causes the complaints noted above.

Cornerstone Dealer Development, LLC trains and develops Desking and Deal Structuring techniques, but also installs and supports a Special Finance Sales Process that is not dependent upon finding an approval. In fact, of the four elements needed to have a successful deal (a customer, a vehicle, equity in cash or trade, and an approval) we believe the customer and the approval are already there. You might not know what lender you will deliver the customer through yet, but you should know what lender or lenders you have an approval with. With the vast array of lenders available today there is no excuse for not being able to offer every customer an approval regardless of their credit. Of the course, delivery will be dependent upon landing on the “right” vehicle and the customer providing the “right” equity to take advatage of, and maximize the approval.  In other words, your Special Finance Sales Process should target landing the customer on and creating interest in the “right” vehicle as well as creating eagerness in the customer to provide the “right” equity. Most dealerships try to “find” Special Finance Deals. In redirecting your focus as discussed above you can actuallty "create” Special Finance Deals.

Whether your Special Finance deals are the result of a separate department with a dedicated manager, the result of efforts from the sales desk, or the result of an existing F&I office dabbling in Special Finance; if you develop your Special Finance specific Desking and Deal Structuring techniques, consitenly land your customer on the “right” vehicle, and increase your average cash down you will deliver more cars and make more money. Your customers should be working as hard as you are to put the deal together, your customers should be flexible with vehicle selection, and your customers should be digging deep to provide additional equity. If they are not, it is time to get a new Special Finance Sales Process and enjoy new found success and profits.

 

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