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Purchasing a car is the second largest investment most people will make. And, unfortunately, many compare the experience to a visit with the dentist. John Krafcik, Hyundai Motor America CEO stated “Americans would rather go to the dentist than visit a car dealer.” So many things can go wrong from the time a prospect sets foot on the lot to the time they roll off in their new car. Many deals fall apart during one fatal stage, the uncomfortable transition to F&I. During this time period many prospects are likely to change their mind.
Below are three creative solutions dealerships could use to “keep the car sales alive” during the uncomfortable transition to F&I. Minimizing the time prospects sit and contemplate whether they are making the right decision has a direct impact on increasing the F&I and service conversion numbers.
1. Introduce them to your Service Manager
70% of service customers return to buy another vehicle. Taking this time to introduce a customer to your service manager is a great opportunity to increase service revenue and the chances of them buying their next car from your dealership. Customer retention is critical in this step of the process.
2. Sign them up for timely service alerts to save them money
It’s a good idea to schedule preventive maintenance appointments before they leave the dealership. Companies such as AutoServiceAlert.com create and manage text-based service alert schedules for dealerships.
3. Present Accessories Options
Another way to fill the time and increase revenue is presenting accessory options. Personalizing a vehicle creates a sense of ownership. And, it minimizes any apprehensions about the purchase. The 2011 Automotive Accessory Market Report by Foresight Research stated that the average accessory dollars spent and intended to be spent per new vehicle sold equaled $815.
If dealerships want to be successful they have to effectively use this time gap. As John Krafcik put it, a turnaround in the automotive industry “will require some revolutionary thinking”. It will only occur when “We listen to our customers and respond to their needs.”
