How To Sell An Intangible – A Finance And Insurance Sales Training Example

Finance and insurance sales training:

Many years ago I had my first sales assignment as a finance and insurance salesperson at a Chrysler automobile dealership in North Carolina.

I remember one of my first customer’s was Mr. & Mrs. Jacobs. They were a middle aged couple with one teenager still at home. They were buying a new Chrysler that would primarily be Mrs. Jacobs car.

There is one big difference in auto sales training and finance and insurance sales training. In car sales you are selling a tangible item the prospects can see and feel. In finance and insurance sales you are selling an intangible the prospects can’t see and feel. One is not better or worse they are just different and require different sets of selling tools.

The products I sold as a finance salesperson were things like extended service contracts, credit life insurance, accident and health insurance, and the actual financing of the vehicle they were purchasing.

Two intangible selling tools used in finance and insurance sales training

Intangible selling tool #1 – Savings / cost comparison:
First I presented to the Jacobs an extended service contract and Mr. Jacobs said he didn’t want it.

Then I showed him a list of 10 of the most common types of major repairs people need to have done on their vehicles that the extended service contract covers. Next to each item was listed the labor hours required to do the repair multiplied by the average per hour labor rate for the local area. And next to that was the average parts cost of that particular repair. Most of these individual repairs came to a total of parts and labor cost of over a thousand dollars some were several thousand dollars.

I then showed him and extended service contract that was priced at $599. I also showed him the details of the coverage and how each of my 10 common examples would have been fully covered. This could possibly save him thousands of dollars in repair costs depending on the type of repair.

After showing him how much his potential savings could be and then comparing it to the much lower cost of the service contract he agreed to buy it.

Intangible selling tool #2 – Protecting a loved one:
The second product I presented to the Jacobs was credit life insurance on their car loan. Again Mr. Jacobs responded by saying, “I don’t need it.”

I agreed with Mr. Jacobs that he may not need the credit life insurance but his wife, who was a stay at home mom, may need it one day. I explained that if he were to unexpectedly pass away his wife would be required to continue making the payments on her car if she wanted to keep it.

I them gave him two examples of actual situations I knew of regarding credit life insurance on cars where the husband passed away.

After that, Mr. Jacobs wanting to protect his wife said he would take the credit life insurance on their car loan.

The finance and insurance sales training take away tip
How to sell an intangible? In both situations I was selling a product that my prospects could not see or feel. And with the above two selling tools I turned the product’s benefits into something my prospects could see and feel.

Try using these selling tools on your next intangible product presentation and watch it improve your closing success.

Auto Loans For Students: Helping Students Own Vehicle

In student life often usage of public transportation hurts you. You get tired of having to walk to class in wet, cold weather. Maybe you need a car to get to and from a new job that you just started. You can apply for an Auto loans for students, even if you have no credit or bad credit!

The most striking feature of the auto loans for students is that they are specially made for the students keeping in mind their comfort and discomfort. There are very less percentage of students who has good credit history. Hence, these loans are meant for students with no or bad credit history as well as good credit history.

The amount for the loan should be applied carefully. That is, you must not take excess fund just spend on other less important things. The amount is dependent on the choice of the car that you want to buy.

Repayment period is usually of 5 years but it can be stretched up to 7years. The student car loans are of secured type. Your car is kept as collateral which will be possessed by the company for reselling. You should always try to make your down payment as high as possible for you. This will leave you with smaller amount to be paid as monthly installments. Down payment of 20% is advisable.

The auto loans for students are best availed through website. There are countless lenders websites offering you such loans. Just a small formality is required. You will have to submit online application. However, you need to keep in mind to tally all the terms of loans offered by various lenders before committing.

Can I Get A Car Loan After Bankruptcy?

In our business we often have clients ask us, “Can I get a car loan after a bankruptcy?” It seems that we have more and more people asking this same question now days. The answer to that question is yes, you usually can get a car loan after a bankruptcy.

It all depends on your personal circumstances. Every person and their bankruptcy is different and needs to be approached that way.

Due to the increasing demand, there are many lenders who will offer a subprime car loan to help those who are in need begin to rewrite their financial history. In fact, securing a car loan after a bankruptcy is a great way to begin the ascent toward a higher credit score.

Let’s investigate a couple solutions to help you answer yes to the question “Can I get a car loan after bankruptcy?”

Begin by locating a couple different subprime lenders through local dealerships. Because not all dealers offer special financing, ask this up front when you call the dealership. The following tips can help you speed up the process of getting a car loan.

Prepare For Your Visit

After an interview I conducted with an auto consultant that specializes in helping people find car loans after bankruptcy, I learned it could be helpful to prepare for your visit. Nancy explained to me that getting pre-qualified can help her tailor-fit an auto loan to a person’s specific car-buying-DNA.

Nancy suggested to collect the following pieces of information before taking a trip to the dealership.

*Proof of Identity – Bring a current state issued driver’s license.

*Proof of Income – Bring a couple of your most recent pay stubs.

*Proof of Insurance – Bring with you your current insurance card.

*Proof of Residency – Bring a couple utility bills in your name with your current address on them.

Take A Visit To The Dealership

Now, you are prepared for your appointment. Go meet with the expert auto consultant, present your information and begin a discussion on the type of car you are looking for. An added bonus working with an auto consultant is that because they care about your specific needs, they will do all they can to find a car that suits you. This is better than being given a choice of having only three cars to choose from.

Consider a newer model car that has lower miles. A slightly used car can save you hundreds to thousands of dollars by avoiding the immediate depreciation that comes with new cars.

Ask to see a history report on the vehicle. You want to see a Carfax or AutoCheck report to see if there were any previous problems with the vehicle. Next ask to see a safety inspection report to ensure the vehicle is safe for you and your family.
Being prepared and working with someone who is an expert can help you answer, yes to the question, “Can I get a car loan?”

How Does Floor Plan Financing Work For Car Dealerships

Floor plan financing is a key element of the auto industry in both Canada and the United States . Exactly what is floor plan financing and how does it work?

This type of financing is in effect a short term inventory financing for both new and used car dealerships . Traditionally the floor plan industry was geared towards what we know as franchise dealers, i.e those dealers representing product for the likes of GM, CHRYSLER, FORD, etc .

The financing allows the dealers to carry sufficient inventory to satisfy customer needs and demands re model types, accessories, options, etc . It is an extremely large market in what is of course a multi billion dollar industry .

When floor planning financing works properly it is effective, has a reasonable cost attached to the financing, and is totally transparent to the consumer . As consumers when we drive past auto dealerships, either new or used, we don’t care how the inventory got there, we just know its there for us to examine and purchase .

Floor plan financing is executed on both a small and large basis . It is not unusual for finance firms to use more esoteric finance vehicles such as asset backed commercial paper, Special Investment Vehicles ( commonly called SIV’s ) etc. to finance the billions of dollars of inventory that the industry needs to move product through .

Naturally, whether we are talking about the largest GM dealer in town, or a small used car dealership with multi lines of vehicles there has to be a finance program that can grow and backstop that inventory .

In the Canadian marketplace as an example, with which this writer is more familiar , the independent dealers have as much need as franchise dealers for this valuable type of financing .

We have all read recently that many of the tier one floor plan firms such as GMAC and CHRYSLER CREDIT have withdrawn substantially from the market . This has allowed a number of private firms to enter the market and capitalize on the withdrawal of the ‘ big boys ‘ . Additionally, as the banks perceived the auto market as significantly more risky in the current 2008-2010 economic turmoil they also have scaled bank in their previous focus on floor plan financing for car dealerships .

Finance firms that execute well on floor plan financing initiatives are those that of course properly funded ; they also know how to collateralize the inventory through proper legal documentation and registration. The average term for a car being on the auto lot tends to be within 30-90 days . The floor plan financier registers liens on the vehicle, and when the vehicle is sold that lien is removed . The finance firm of course profits from the ability to charge the dealership interest over that 30-90 day period . Naturally this process repeats itself continuously . Lenders must have reasonable confidence in the financial viability of the dealer, more experienced and financially solvent dealers can naturally command larger floor planning facilities . Dealers also are subject to rigorous audits of the inventory . The lender wants to know the car is still there and hasn’t been sold and not paid for of course! Therefore VIN ( vehicle identification numbers ) are checked regularly by finance company personnel , insurance is validated, and random inspections are common

Overall the auto floor plan facility is a key aspect of the automotive market , and is a significant benefit to both new an car dealers alike .

Car Loans – Bad Credit – No Problem

If you are looking for car loans with bad credit, it may be no problem. Most people do not believe you can get car loans with bad credit but this is not always the case. There are several dealerships or auto consultants who specialize in getting car loans for people with bad credit.

If you are in the need for a car loan and have bad credit here are some tidbits that may be helpful to you.

Since not every dealership offers special financing you may want to start by doing a little homework. You can do a search on line for local dealerships or auto consultants who have special finance departments. Another route may be to ask friends and family if they have had a similar need for car loans with bad credit.

The key is to find a car dealership or auto consultant who truly cares about you and your situation. There are some salespeople out there that may consider special financing a troublesome situation and these may be the people you want to avoid.

Look for a salesperson that treats you with respect and shows enthusiasm toward finding you a car loan despite your bad credit. Let’s face it, bad credit is already stressful to those that carry a low credit score. There is no need to further the agony as you search for a car loan under bad credit circumstances.

Furthermore, a car loan may be the perfect answer to helping you improve your credit score. By securing a loan for a car and faithfully making the loan payments on time every month, you can begin the climb toward raising your credit score.

By utilizing a car loan through a trusted dealership or auto consultant you can create a win/win situation. In addition to improving your credit rating, you will get a set of trustworthy wheels to take you around town.

This leads to the next tidbit – a trustworthy car. Many establishments that offer car loans to those with bad credit have a nice inventory of late model cars with lower mileage. A quality special finance department will have the car inspected for the engine’s performance along with a safety inspection to assure you have a quality car that is safe for your family.

When you go to shop for a quality car loan with bad credit, bring the necessary paperwork with you, this will help you to get pre-approved. You will need a current driver’s license and proof of insurance. In addition, you will need a couple of your check stubs for proof of income. You may be asked to provide proof of residency with a utility bill and your cell phone bill. This will help you in getting pre-approved.

Being pre-approved will allow the special finance person to begin looking for your perfect car loan despite your bad credit.