In developing training programs and processes over the last 19 years, we continually identify and study the top-performing F&I departments in the country. While every one of these top F&I managers is different in some way, they do have some things in common. One of the traits they seem to share is their unique ability to create credibility in the minds of their customers.

Creating credibility with today’s consumer is no small feat. Think about it. What has every customer been told, by every media source out there, will happen to them in a car dealership? That’s why they act the way they do. They are both skeptical of the dealership personnel and sales resistant at the same time. While it’s easy to argue about or dismiss this attitude towards our industry, it remains a fact that has to be accepted and dealt with.

In creating top F&I performance, it is important that we understand that selling an automobile is a completely different science than the F&I process. In selling a big-ticket, tangible product, like a car or truck, a key element of success is the establishment of rapport. Customers tend to buy from people they like. The qualification process, demonstration ride and the friendly handling of the commitment and closing stages of the sale are most effective when the salesperson has developed a positive relationship with the customer. However, in the F&I process this attempt to develop rapport can work against us.

Some of this has to do with the psychological state of the buyer at different stages of the purchasing process. When they are considering a new vehicle, their thoughts and feelings are focused on positive factors. They are picturing themselves in that new vehicle, imagining how they will look and feel driving it and are excited at the prospect of the new vehicle experience. However, when they get to the F&I stage of the process a host of negatives like monthly payments, interest rates, mechanical breakdowns, even their death or disability come into play. Applying the sales tactics we use to sell a car to address those areas is not the most effective way to evoke a buying response.

This is why many skilled automobile salespeople become frustrated and confused when they first move into F&I. The skills that made them successful on the showroom floor fail them in the F&I office.

Why is credibility so important? First we have to understand why people buy F&I products. The “psycho-neuro” triggers that cause them to purchase are fear of loss, and are security based. They have very little to do with a perception of “value.” The key is to get them to consider and evaluate the security issues and protection that your products provide without evoking a wall of sales resistance. Credibility will do this; rapport will not. In fact, if the customer feels they are being sold these products or they get the idea that there is something in it for you, they will resist.

So how do we create credibility? Below are some tips to help:

1. First, always, (I repeat), always tell the truth. No matter what. Dr. Phil says that 95% of all communication is non-verbal. It’s certainly true in the F&I office. If you are committed to telling the truth it will show in your answers, demeanor and how you interact with the customer. They will pick up on it.

2. Immediate full disclosure. Build a full and complete disclosure of all of the elements of the car deal into the first minute of your presentation process. This is the first step to creating credibility with the customer and separating yourself from the “sales” process. While many inexperienced F&I managers shy away from this approach, top F&I performers know that this is an effective way to begin the F&I interaction.

3. Give simple explanations of the products, not sales pitches. Many customers don’t buy particular products simply because they didn’t really understand what they were. Make sure your explanation is short, simple and to the point. Use plain language, not proprietary industry phrases or word tracks.

4. Listen carefully. Show the customer that you feel what they are saying is important. Make eye contact when listening. You are a Business Manager, not a salesperson. Let them know that their options are important to them and that their feelings and thoughts are important to you.

5. Take yourself out of the decision-making process. Offer all your products equally and let the customer respond. If they have an objection, don’t react in a negative way. Offer an alternative. Make sure it’s about the product, not about you.

6. Make it short, to the point and fast. Many of the presentations we have been taught go into a lengthy feature/benefit spiel. While product providers want you to give each and every highlight and benefit of their product, you can’t keep the customer’s attention that long. And the longer the explanation, the more it starts to sound like a sales pitch.