Option Column Objection to VSC Segue

Posted by Erik Landrum on April 10, 2019 in F&I Selling Strategies, Objection Handling

So you have just finished presenting your menu, complete with robust columns. You have recommended the column most applicable to your guest’s needs.

Their response is, “Thanks for covering that, but I just don’t think I need it.”

Now what we have here is time to make a decision…high road or low road. In other words, will the conversation quickly devolve into something resembling (at least implicitly) a wise-guy follow on description of a “50/50” warranty? “Don’t need it…are you willing to take the chance that when your car breaks in half, you own both halves?”

Of course not!

Do we respond with an apology for asking that they considered all (or most) of our products by saying, “you don’t have to buy them, all, if you don’t see the value”?

Again, probably not the most inspiring approach.

Perhaps, instead, we could seize upon the opportunity the objection has presented to further educate our guest(s). Your response, therefore, might go something like, “Is it the way it’s packaged that concerns you?”

To which your guest may reply, “what do you mean?”

You’ll continue, “Mary, Mike…you, like me, probably consider this top piece…the full mechanical coverage…the one everyone refers to as ‘bumper to bumper’…the one that covers nearly everything but your wearable maintenance items…you probably consider this the most important item in the whole matrix, correct?”

Mary and Mike respond, “sure.” You confidently follow with, “I’ll explain.”

You’ll go on to review, visually and verbally, the factory coverage of the new vehicle, or the balance of such (if any) on the pre-owned vehicle. It is at this point that we may either turn the menu over and utilize a hand-drawn description of the factory coverage, or source a pre-printed grid.

The grid may look something like this:


Circling the 3 and the 36, we proceed to explain that the factory (those who probably know the vehicle better than anyone) provides them with the first 3 Years or 36,000 miles (whichever comes first) of “full mechanical” coverage (the one everyone typically refers to as bumper-to-bumper). This covers over 5000 items on the typical vehicle; almost everything, save for the wearable maintenance items!

We continue by circling the 5 and the 60 while explaining the factory also provides 5 years or 60,000 miles (whichever comes first) of powertrain coverage. This covers approximately 400 internally lubricated drivetrain items on the typical vehicle.

There is, unfortunately, a gulf of difference between the powertrain and the “full mechanical” levels of protection. For example, and just to name a few of the major items, under the hood, that are provided NO coverage under the powertrain warranty…things like the A/C, the alternator, the power steering, and the computer system. Then there are all the parts and components inside the vehicle.

Having thoroughly reviewed where the factory’s level of risk tolerance is and where it is cut off, we may ask our guest, “why should your level of risk tolerance pick-up where theirs has ended? They probably have more money than the two of us, combined.”

“After all, no one wants to have a car payment AND an uncovered repair payment, both. Besides, everyone can probably agree that the likelihood of something going wrong in the first 3 years or 36,000 miles is usually far less than in the second 3 years, 36,000 miles!”

Naturally, we may conclude that we have this opportunity to extend the “full mechanical” coverage beyond where the factory is willing to pay for the repairs! While doing so (and referring to our grid) we may wrap it up by saying that, “now, not only will we be blanketed by the protection of the full mechanical coverage here”, stated while shading that area, “but extend it to encompass all of this additional area”, stated while drawing an arrow to the upper right corner of the new, total coverage area, and shading correspondingly. “Sound good?”

Of course it is important to mention, at this point, that you have accurately zeroed in on their anticipated term and mileage needs.

Once agreement to the sentiment is secured, recreate your menu. Leave the column that you had previously recommended in an undisturbed state. In the column immediately adjacent to it, leave only the VSC present. In the column next to that, have your VSC offering and 1 other item (thoughtfully considered as wisely applicable to their needs, based on your time together) from your first recommended column. Chances are they’ll proceed to take advantage of both offerings.

Be available to educate and assure them that, by insuring their investment, you have ensured their interests are fully considered!

Give it a try.

Good luck and good selling!

Erik Landrum
F&I Performance Coach at Conley Insurance Group

Conley Insurance GroupCopyright 2019 – Conley Insurance Group Inc.,

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