As a mature, long time car buyer (around 40 over the years) the one thing I have learned which is certain is there are two sure ways to ensure a good car deal is not turned into a bad deal in the F&I office. Firstly demand the buy rate. Secondly say a firm NO, NO, NO (three are usually needed as F&I managers often believe no does not men no until the third no). Using these two demands any car buyer will escape the Box (F&I office) unscathed. No matter how pleasant the F&I manager may seem, he or she is not the buyer's friend.
@@MrBigjoe2400 Of course you do, you are clearly an F&I manager whose pay is largely related to the F&I products you sell and the dealer reserve you are able to "sell" to customers. The one thing any car buyer who purchases F&I products such as an extended service contract (often $2,400), paint protection (ofter $500), fabric protection (often $500), key replacement (often $500), etch (often $300), tire and wheel (often $500) can be certain is they will spend the money and most likely never recover the cost in benefit claims. Rather than spend $3,000 or more in the F&I office, the astute car buyer will put that money or make a monthly savings Over 60 months a savings of $50 will provide more than $3,,000 in available cash for any issues. Using $100 will provide $6,000. New vehicles are covered by actual warranties for 36 to 48 months. In addition there are other warranties on new vehicle which are in effect far longer than 48 months. So a 5 year ESC is really only covering 2 to 3 years, at most. Putting aside $50 each month and not paying the exorbitant prices dealer F&I managers ask means the car buyer has the money available should an issue occur. Even better, if no issue occurs, the car buyer still has that money and not the smarmy F&I manager with whom the car buyer wasted a hour or so several years earlier. Personally, I put aside $125 a month for each of my two vehicles, one a 2017 and one a 2019. I know have over $12,000 set aside in my car issue investment account. The important thing is I have that money and not the two F&I managers I met several years ago. Neither seems to still be working for the car dealer. Even better neither of the two F&I managers was successful in bumping the interest rate, no dealer reserve off of me. The thing every car buyer should understand is virtually no independent consumer advocate advises buying any product from a car dealer F&I manager. Most are virtually useless and all can be purchased elsewhere for far less money.
Right, you can demand buy rate and you’ll just get sent to a bank that has the largest flat. Also just say no to protecting your $50k+ vehicle passed 36k miles when most VSCs cost less than 7% of the cars value to protect it for 100k miles. Great advice Scott. 👌
Scott pays $1000 a year on car insurance that he never has to put a claim in on. He also pays for life insurance in case he passes away before he’s 60. Is it unrealistic in 10 years of ownership of your brand new 2024 ______ that your vehicle will see the shop at least one time? Labor rates today are 150-200 an hour. What could they be in 2030? 300? 400? Maybe. Wouldn’t it make sense for $2800 over 10 years to protect your vehicle that has 14 computers, 3000 feet of wiring, and 30,000 parts. Idc if you have 12k saved without a vsc to pay for it. Why empty all of that out of your bank account at once. What if I told you that VSC can help you earn $2500 or more for your trade in when you’re ready to part ways with that 10 year old vehicle. Scott, I challenge you to be objective. Ignorance isn’t intelligence. Sign here____.
Good video, but I would ask: " Why you need to think about it? " Maybe the customer needs time because is waiting for his money next day, maybe something easy to resolve... I would hear the customer first what is the reason he needs time before talk talk talk and talk... Any way guys, Im getting the curse soon, because my goal is be the Finance Manager in my dealership soon.
When polled, what is often the highest request consumers have for dealerships? To get in and out as soon as possible. Customers want to know that they will be leaving with their new vehicle shortly.
