As the number of vehicles sold in the US each year continues to climb, your sales staff and F&I team need to know how to reach a growing part of the auto buying market: Millennials and Generation Z. These first-time buyers aren't like the traditional customers you may be used to seeing. Plus, they require a dedication from dealers to help coax them from "no" to "yes."
Selling More Cars to Young Adults
According to Automotive News, first-time car shoppers often don't know what to expect from buying or financing once they get to the dealership. These buyers may have done some research online – mainly about the vehicle they're hoping to get – but, for the most part, they only have a vague notion of things like service contracts, loan terms, and APRs.
Speaking to the situation, Andrea Brimmer, chief marketing officer for Ally Financial, recently told Automotive News "[Millennials and Generation Z car buyers] don't really fully understand rates, the difference between rates versus terms. It's a huge hole, regardless of age, customers feel unsettled when they go into the F&I box."
A February survey conducted by Equifax seems to support this theory. In a survey of 1,000 people, Equifax found most millennials project their monthly payments and anticipated spending for a vehicle – especially in subprime credit tiers – to be the same as what a prime customer would pay. This data conflicts heavily with the fact that these same respondents felt they understand how credit scores influence car buying.
From dealers – and lenders – there needs to be some form of educational content that's relatable to these first-time buyers. Preferably, it should be something online, or social media based. "As you would imagine, [these buyers] tend to go home – or even from the dealership – tweet out, post on Facebook, or text to try to verify the things they were being told at the dealership," Brimmer said. "They tend to fact check things at the dealership online, particularly lease terms and financing rates."
Overcoming Buyer Objections to Sell More Cars
So, with studies suggesting younger, first-time car buyers have a bit of skepticism, coupled with a unique view of how credit affects car buying, how are you and your sales staff going to overcome their objections to close a sale?
Here are four secrets to selling cars that you can use as an F&I manager to turn customer objections upside down, according to Rick McCormick and recently shared in an F&I and Showroom article:
- Be yourself – Most customers respond better to F&I managers who aren't cookie cutter. Typically, they encounter F&I managers who use the same techniques and ask the same questions. Customers can also feel pressured when you do most of the talking. Instead, use creative probing questions, help the customer see their need for the product while they do the talking, and focus on making their decision to buy easy and natural.
- Don't push a product your customer doesn't need – People tend to buy from people whom they trust. As an F&I manager, nothing builds trust more than focusing on your customer and discovering what they truly need from a vehicle. Remember, people should always be the focus over products. Focusing on how your products fit the customer's needs should be key.
- Use the 70/30 rule – This rule dictates that your customers should be talking 70 percent of the time they're in your office. Active listening is always a best practice. A good way to overcome customer objection is to use what you've learned while they were talking.
- Make sure your customer connects with the information – A good way to do this is to make your pitch visual and interactive. This tactic plays to the fact that over 65 percent of communication is visual. Think about the impact of explaining a feature or perk to a customer, and being able to hand them the part you're talking about. The impact would certainly overcome that of a story by itself, and any kind of visual aids can help.
Once you've overcome your buyer objections, you're on your way to closing more sales. Plus, if your customers are first-time buyers or struggling with credit issues and you can get them into the vehicle they need, you're more likely to gain repeat business. Subprime customers, especially, are some of the most loyal around.
Getting More Customers in Your Door
Knowing how to overcome customer objection, and how to deal with first-time buyers is only half the puzzle. If you're going to put this knowledge into practice, you need customers coming through your door. That's where Auto Credit Express comes in.
We work with you to supply the leads you need. We've been a top supplier of subprime leads for over 20 years, and can provide valuable new and used car leads that are ready to buy. If you're ready to take advantage of your sales knowledge to sell more cars, simply fill out our online contact form for more information, or call 888-535-2277 to see what we can do for you!