Dealer / F & I training

Transcription

1 Dealer / F & I training

2 the Numbers agent and dealer commissions Equity 4 U has paid out over since 2004 the number of transactions our network processes each year. the dollar amount that flows through those transactions. Total number of years/ years in F & I / major markets that I have worked in the F & I position in the Automobile industry. Number of years that Mike Hull has guided Equity4U as it s CEO and president with an A+ rating with BBB

3 Equity 4 U, Inc. A+ rating

4 Agenda 1. Mechanics: Get started / Equity4U Website / Certification Test How to log on /Calculate / Print worksheets / Enroll on Menusys The benefits of Equity4U how does it advance equity 2. How to package and bundle / word tracks / what to say, and what not to say 3. Minimizing risk while enjoying the benefits of Extended term financing. 4. FAQ s

5 Step 1. Home page is Click on TRY OUR PAYMENT CALCULATOR

6 Step 2. Enter Line 5 When Calculator opens up Loan Amount is Line 5 (total unpaid balance including all taxes and fees)

7 Step 3. Click on Calculate This will bring up the Monthly Payments and Biweekly Benefits side by side

8 Step 4. Open up the worksheet At the bottom of the Payments and Benefits you will find the Graph showing the breaking point in payment acceleration below that you can open up features including the worksheet, amortization, and calendar. Access these features by clicking on print now

9 Simple as pie From Line 5 numbers to 3 worksheets in about 4 seconds

10 How to Package E4U Q. How do you sell Bi-weekly payments? A. You don t You package the service with other products. How? Increase your price matrix $399 then give it away, along with a $399 discount on every VSC, GAP, Tire/wheel, ding/dent/ chemicals/ menu bundle etc. See next slide for Examples with actual screen shots from the F & I managers screen

11 This idea started in 1947 (ask me to prove it.) But wait before we get the packaging slide with the screenshots be clear that every dealership in America is already executing this strategy just not with Biweekly payments. Step 1. take a sticker that looks like the factory sticker Step 2. Make up a number, any number, and put that sticker next to the factory sticker. Step 3. Negotiate starting from the price on that sticker instead of the one from the factory.

12 Mark it up then discount Part 2

13 Example A: the F & I manager want to Draw $ for his service contract. Example A1: the F & I bumps his service contract / then discounts In front of the customer and now His deal automatically includes E4U. What do the word tracks sound like? (with standard objection to product) Mr. Hull, I understand you would like the benefits of our VSC, but perhaps your budget is getting in the way of taking advantage, let me show how we can utilize a service we have called Equity4U and we can open up the funds from a shorter loan term to offset the price of the VSC. (without standard objections) Mr. Hull, by the way did you know that one of the advantages of doing business here at Young Chevrolet is that with have included a $399 discount in all of our ancillary products that lets you trim your repayment schedule a few months, this product is Equity4U, and the benefits are as follows

14 Equity 4 U enrollment fee $ A discounted dollar amount of $ will be taken off of your VSC GAP Tire / wheel Ding / Dent Menu Package (check appropriate box) Stock # Authorization signature Customer signature Date An exclusive courtesy of Ed Carney Ford Equity Advantage Dollars

15 Example B: the F & I manager want to Draw $ for his Tire Road Hazard Example B1: the F & I bumps his Tire Road / then discounts in front of the customer and now his deal automatically includes E4U. What do the word tracks sound like? (with standard objection to product) Mr. Hull, I understand you would like the benefits of our Tire Road Hazard, but perhaps your budget is getting in the way of taking advantage, let me show how we can utilize a service we have called Equity4U and we can open up the funds from a shorter loan term to offset the price of the VSC. (without standard objections) Mr. Hull, by the way did you know that one of the advantages of doing business here at Young Chevrolet is that with have included a $399 discount in all of our ancillary products that lets you trim your repayment schedule a few months, this product is Equity4U, and the benefits are as follows

16 Example C: Take any of the 3 products and pull your offset from any one product or a combination of the 3. What do the word tracks sound like? (with standard objection to product) Mr. Hull, I understand you would like the benefits of our VSC, GAP, and Tire Road Hazard, but perhaps your budget is getting in the way of taking advantage, let me show how we can utilize a service we have called Equity4U and we can open up the funds from a shorter loan term to offset the price of this Packaged Combo. (without standard objections) Mr. Hull, by the way did you know that one of the advantages of doing business here at Young Chevrolet is that with have included a $399 discount in all of our ancillary products that lets you trim your repayment schedule a few months, this product is Equity4U, and the benefits are as follows

17 Certification Test F&I Certification (Circle the Correct Answer) 1. Primary customer benefits include faster loan payoff and increased equity. True or False 2. The only fee for the program is $1.95 ACH for each debit. True or False 3. Customers first E4U debit will occur on the payment due date. True or False 4. Biweekly debits occur on set days such as every other Friday. True or False 5. Customer can t contact Equity 4 U to adjust debit schedule. True or False 6. Once assigned by the lender Equity 4 U must receive the loan account number from the customer. True or False 7. F&I Manager can adjust the system generated dates back 14 days or out 1 day. True or False 8. The enrollment fee of $399 is not on line 1 or 5 of the finance contract therefore I don t need to disclose. True or False 9. The Equity Benefit dollars are hard cash shavings, therefore I can tell the customer they can deduct this amount off total payments. True or False 10. If the customers ACH debits fail for any reason E4U will attempt to notify, however ultimately it is the customer(s) responsibility to make other arrangements with E4U or their lender. True or False F&I Manager Date Score (Must Score 90% or Above)

18 Certification Test answers Answers 1. True. While the service includes multiple benefits such as; automated payments, less interest paid, and no upfront cost to enroll, faster loan payoff and equity generation are huge. 2. False. The program includes a $399 deferred fee (not financed), however you can rebate this fee off of a VSC or another product fee. 3. False. The debit dates are generated on the calculator tool and will occur prior to the loan payment due date in order to make on time payments. 4. True. Do not confuse biweekly with semi-monthly. Biweekly is on set days of the week, while semimonthly is set dates such as the 1 st and 15 th. 5. False. The customer is always encouraged to contact E4U for any schedule or amount adjustments. 6. True. It is very important the customer provides us with the loan account number as it will greatly improve facilitating the payment to the lender. 7. True. Any adjustments outside these parameters must be completed by E4U customer service as the debit dates impact when the funds are sent to the lender as payment. 8. False. All fees must be disclosed. E4U has provided an initial line by the fee for enhanced compliance. 9. False. Increased Equity is realized when the customer sells or trades in the vehicle for example if the customer comes to you 3 years later they will owe less, therefore there will be more $ s to work with. Likewise when the vehicle is sold the customer will have more net $ s in their pocket. This is a product of principal reduction payments made throughout the loan payment process. 10. True. E4U will make attempts to contact the customer to notify them of the failed debit, but is the customers responsibility to address the situation with E4U in the form of rescheduling a make up debit or paying their lender directly for the shortfall.

19 Equity4U Certificate of Completion is hereby granted to Scott Burns to certify that he/she has completed to satisfaction Finance and Insurance Code of Ethics Granted on this 7 th day of February, 2015 Michael B. Hull President

20 45% of all Auto Loans are 72 months or Higher What is your dealerships average trade cycle? (see factory rep or AOI Report) A months What is your dealerships exit strategy on these long term loans? (to keep the cycle from jamming)

21 #1 rule of F & I: Protect the House # 1 rule of agent: Protect the Dealers you serve Automakers are increasingly selling vehicles with 84-month loans that reduce monthly payments while making it tougher to repay faster than cars lose value, John Mendel, Honda s U.S. sales chief, said in an interview. You re ringing the bell on a new-car sale, but that customer is saddled -- they re stretched so thin, Mendel said at the North American International Auto Show last week. Extended-term loans are stupid not just for us, but for the industry. The comments by Honda s Mendel were a rare show of caution during the auto show in Detroit, as car-industry executives cheered the best year of U.S. sales since Deliveries are projected to rise to 16.7 million this year, which would be a sixth straight increase and extend the longest streak of gains since World War II.

22 My average customer trades after months Conventional Monthly vs Biweekly payments when your customer trades out, they will owe Equity4U Amortization Table (Part 2) Paid Monthly Paid Biweekly Month Balance Equity Balance Equity 34 13, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,118.75

23 Trade in time: using GAP calculator without Equity4U GAP CALCULATOR 2015 CHEVROLET MALIBU 4dr Sdn LS $25, % 72 months Without Equity4U Months From Today Actual Date Projected Value Unpaid Balance The GAP 0 3/15/2015 $23, $25, $2, /15/2015 $21, $25, $3, /15/2015 $18, $24, $5, /15/2015 $16, $23, $6, /15/2016 $14, $22, $7, /15/2016 $13, $21, $7, /15/2016 $13, $20, $7, /15/2016 $12, $19, $6, /15/2017 $11, $18, $6, /15/2017 $11, $17, $5, /15/2017 $11, $16, $5, /15/2017 $10, $15, $4, /15/2018 $10, $14, $3, /15/2018 $9, $13, $3, /15/2018 $9, $11, $2, /15/2018 $9, $10, $1, /15/2019 $9, $9, $ /15/2019 $8, $8, ($162.06) 54 9/15/2019 $8, $7, ($969.82) 57 12/15/2019 $7, $6, ($1,794.84) 60 3/15/2020 $7, $4, ($2,637.38)

24 Trade in time: using GAP calculator with Equity4U GAP CALCULATOR 2015 CHEVROLET MALIBU 4dr Sdn LS $25, % 72 months With Equity4U Months From Today Actual Date Projected Value Unpaid Balance The GAP 0 3/15/2015 $23, $25, $2, /15/2015 $21, $24, $3, /15/2015 $18, $23, $5, /15/2015 $16, $22, $6, /15/2016 $14, $21, $7, /15/2016 $13, $20, $7, /15/2016 $13, $19, $6, /15/2016 $12, $18, $6, /15/2017 $11, $17, $5, /15/2017 $11, $16, $4, /15/2017 $11, $15, $4, /15/2017 $10, $14, $3, /15/2018 $10, $13, $2, /15/2018 $9, $11, $1, /15/2018 $9, $10, $1, /15/2018 $9, $9, $ /15/2019 $9, $8, ($811.05)

25 The Real Customer Experience Equity4U Advantage Dollars Conventional Loan x x x x Without Equity4U There is no version of an outcome that supports our good customer coming back and buy another car from us owing less. Average savings $ /v x 156 vehicles (60%) = $191, / month 191, x 12 months = $2,300, X 36 months = $6,902, X 60 months = 11,503, New Revenue stream to your Dealer bottom line = $280, / year 5 year runoff = $1,404,000.00

26 Log on to Step 1. Click on top right Calculators

27 Log on to Step 1. Click on top right Calculators Step 2. Notice the dropdown box has 3 choices Select Biweekly Plan

28 Log on to Step 1. Click on top right Calculators Step 2. Notice the dropdown box has 3 choices Select Biweekly Plan Step 3. When you click Biweekly Plan The Calculator will appear.

29 Log on to Step 1. Click on top right Calculators Step 2. Notice the dropdown box has 3 choices Select Biweekly Plan Step 3. When you click Biweekly Plan The Calculator will appear. Click here to expand your screen

30 Log on to Step 4. Now you can get to work enter Line 5 in the box Finance Amount. enter your Interest Rate (example 5.9%) enter your term (example 72 months) always keep 45 days to First Payment Note: as you change loan amounts, rate, terms, you do not have to click enter or calculate, it automatically recalculates new data.

31 Log on to Step 4. Now you can get to work enter Line 5 in the box Finance Amount. enter your Interest Rate (example 5.9%) enter your term (example 72 months) always keep 45 days to First Payment Note: as you change loan amounts, rate, terms, you do not have to click enter or calculate, it automatically recalculates new data. Note the drop down with 3 options: Biweekly only, Start with Full Payment, and Semi-monthly. Use the default Start with Full Payment unless there is a specific request from the customer to do so otherwise.

32 Log on to Step 5. Now we are ready to Print a worksheet, print a calendar, and Enroll a customer. Click Print to open up the worksheet NOTE: This is the KEY F & I tool, as well as the KEY tool to for closing the sale for the Dealer.

33 Step 6. To print or save the worksheet note the hologram at the bottom, this appears as you hover the mouse over the worksheet, there is not a separate button. Also note that all of your relevant figures are in the body of the worksheet.

34 Log on to Step 7. To really explain how the extra debits shorten the loan we have installed a calendar schedule. Click Calendar and you will have a stand alone calendar with the customers actual payment schedule.

35 Expand the Calendar

36 Note the dates and the third payments

37 Step 8. Last step Enroll the customer by clicking on the Enroll button

38 Expand the Enrollment form Note: Pull from DMS , D.O.B. The more information You capture, the easier It is to find the customer Note: Lender drop down will contain all of your dealers Banks they do business with.

39 As soon as you click Enroll The front and back of the contract opens up and is automatically submitted electronically. To Equity4U There are two places to initial and a signature is required on the bottom. The Dealer gives a copy to the customer, and Keeps a copy in the Deal jacket.

40 CRITICAL INFORMATION: THE DEAL IS NOT DONE 99% IS DONE WE ALL GET PAID ON THE LAST 1% The loan account number form the Lending Bank Will Not be generated until the deal leaves the Accounting office at the dealer, gets booked, And the floorplan is paid off for the dealership. This takes about 3-4 days AFTER the bank receives The deal. We must have a process in place to capture the Loan Account number from the customer. Equity4U will 1. Call the customer 2. the customer 3. Snail-mail the customer To capture this information but there is an easier way. Do NOT pay the spiff until the F and I manager captures Information for 2 reasons. #1. Its not a deal until we have the info. # 2. They can simply logon to their lenders portal, click on request for payoff, and they will have the loan account number without having to call the customer, and ask them if they have received their intro letter in the mail and then ask them to read off the loan account number.

41 Summary Cost Equity 4U is a sold F & I solution that is a 4 tiered win. Customer wins Pays less interest to the banks. Seamless forced savings. Dealer wins: Gets customer back in better equity position (which often times will make the next deal). F & I Manager wins: Sells more product through the offset certificate. Agent wins: Anytime an Financial partner can walk a product in to a dealership and have it received as new, and compelling this is a good day.