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Imagine you and your date are out at a fancy steak house for dinner. Lets say you ordered a 40 dollar 8 oz filet at that restaurant, and only received 2.6 ounces. Would you come unglued? What about at the office, what if you worked your tail off and only received 33% of the paycheck you were promised? What if your kids earned a 33% on a test in school? You get my drift!
We have all heard the saying, “Anything worth doing, is worth doing with 33% effort!” Wait no, its “Anything worth doing, is worth doing RIGHT!” and by most peoples definition of “Right” you have got to at least put in 80%! Right?
So why is it, when dealerships desk a deal, they only desk it 33% of the way? Are you guilty of this? When you desk a new or used car deal, do you only present the price? Are you a four square dealer that only presents a finance payment, with cash down, and trade value and price? When a customer wants a lease payment, do you ONLY give them a lease payment?
What most sales managers don’t realize is that, unless you desk a deal at 100% by presenting finance options, lease payment, cash difference, and one pay lease, you are NOT desking at 100%. If this is the case then you ARE leaving money on the table! At Drivecentric, we want for you to maximize the profit on each and every deal and that’s why we have put together this article to help you make sure you present all the options every time, to ensure you are bringing home as much money on every deal as you can. One of the best parts about presenting a 100% pencil, is that your customer satisfaction and dealership transparency also increases significantly! Because the customer is given all their options, and in a way that is completely compliant to Federal law, and when you show them ALL the options and review the benefits of each one, you appear completely transparent to your customer! Its a win for the clients, and a win for your dealership. Since you will make higher gross profit, the sales manager and the sales person will also bring home a larger paycheck. Desking at 100% really DOES create a win win environment!
So again, WHY aren’t YOU desking deals at 100%? Look at barriers and myths that prevent 100% desking. Chances are one or more of these technical issues, mental barriers or fears is stopping you from bringing home the money you deserve, the PVR your dealer principle has been nagging you to earn, and the repeat business that lease customers bring to the table.
1. Leases take to long to structure.
2. If a customer is paying cash, they will be turned off if we present finance options.
3. The customer has inequity, so the lease payment is too high.
4. Why would a customer do a “one pay” lease as opposed to paying cash?
5. Its hard to keep someone on payment when you have the pricing on the pencil.
6. My CRM is inefficient or incapable of presenting all the options
7. Many other reasons…
I would like to start off by saying, it is completely possible to create a transparent 100% desking pencil in under 1 minute, given the right tools and knowledge. Combine this with the right process and watch your lease penetration, return customers, front end profit and finance income skyrocket. Subscribe to Drivecentric monthly newsletter or email me regarding this article, and for FREE I will go over the 100% desking procedures with you, or your management team and show you how to reap the benefits of this phenomenally easy to use desking procedure.
by Sean Kelley Executive Drivecentric Coach
The numbers are in. Videos have been shown to significantly increase the closing ratio on new internet leads for dealerships. Personalized videos have been proven to have a closing ratio up to 5 times that of traditional contact mediums.
One of the biggest pet peeves from a customer shopping online for a car is the bombardment of automated emails and auto-replies they get from numerous dealerships. I’m sure you’ve seen all the canned templates: extended warranties, free oil changes for life of the vehicle, free tire rotations. Sure, it all looks great on paper, but when it is all said and done, all the emails look the same to the customer.
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