What are the best practices for creating and presenting car finance proposals to customers?

Car finance deals can make or break a sale for automotive dealers. Customers want to feel confident that they are getting the best value and service for their money. How can you create and present car finance proposals that impress your customers and close more deals? Here are some best practices to follow.

1 Know your products

Before you can offer any car finance options to your customers, you need to know what products you have available and how they work. Do you offer hire purchase, personal contract purchase, leasing, or other types of finance? What are the benefits and drawbacks of each option? How do they compare to other dealers or lenders? You should be able to explain the features, terms, and costs of each product clearly and accurately to your customers.

Add your perspective

Oscar Del Cid

"Experienced Purchase and Refinance Loan Officer | NMLS #2489998 | Beyond Loans, Building Legacies🏠 | Based in Las Vegas, NV | Hablamos Español 🙏🏽"
Report contribution
Fantastic question! Crafting compelling car finance proposals is an art that combines financial expertise with a deep understanding of clients' needs. In my experience as a Loan Officer in Nevada, I've found that tailoring proposals to individual goals and preferences is key. Beyond the numbers, it's about building trust and ensuring transparency.

Like

2 Understand your customers

Not every customer has the same needs, preferences, and budget when it comes to car finance. You should ask your customers some questions to understand their situation and goals. For example, how much can they afford to pay upfront and monthly? How long do they want to keep the car? How many miles do they drive per year? How important is ownership or flexibility to them? By knowing your customers, you can tailor your car finance proposals to suit their needs and expectations.

Add your perspective

Aaron Ledohowski

General Manager @ JLR Winnipeg (Jaguar Land Rover Winnipeg) | Birchwood Automotive Group
(edited)
Report contribution
It's equally important not to get stuck on budget questions. What people are willing to spend on any product, whether it is cars, gifts, technology etc is based on whether they believe in its value. Understanding your customers is about finding the right vehicle for their needs, however I've always found that budget questions should be minimal. Most people are coming into a dealership or got in touch after online research, respect that most people likely have an idea of what the payments are looking like from their research before they even begin to talk to you. Moving through the process make sure that you are explaining the next steps. People don't like to guess at what's next, we find comfort in knowing and generally fear the unknown.

Like

3 Compare and contrast

Once you have identified the best car finance products for your customers, you should present them in a way that shows how they differ and how they meet your customers' criteria. You can use a comparison table, a calculator, or a visual aid to illustrate the differences in price, term, mileage, ownership, and other factors. You should also highlight the advantages and disadvantages of each option and explain how they affect your customers' situation. For example, if your customer wants to change their car frequently, you can show how a leasing option gives them more flexibility and lower monthly payments than a hire purchase option.

Add your perspective

4 Address objections

Even if you have done a great job of presenting your car finance proposals, you may still encounter some objections from your customers. They may have doubts, questions, or concerns about the products, the costs, or the process. You should be prepared to address these objections and overcome them with facts, benefits, and testimonials. You should also use positive language and avoid pressuring your customers. For example, instead of saying "You have to decide now", you can say "This offer is valid until the end of the month".

Add your perspective

Matthew M. Klepack

Customer Success Manager II at Solera / DealerSocket: Michigan, Ohio, Indiana, Illinois
Report contribution
Present everything in understandable terms to make the customer comfortable. Present the products with a story of benefits it has to offer that they can relate to or have experienced. Offer testimonies to back up your products, show the facts. Then you may get an ‘a-ha’ response from the customer because they get it now. This may seem like a lot to cover but once you have this in your process, it will flow.

Like

5 Close the deal

The final step of creating and presenting car finance proposals is to close the deal. You should ask for your customers' feedback and opinions on the proposals and listen to their responses. You should also look for buying signals, such as nodding, smiling, or asking about the next steps. If your customers are ready to proceed, you should guide them through the paperwork and the payment process. If they are still hesitant, you should offer them some incentives, such as a discount, a free service, or a warranty extension.

Add your perspective

Brian Helsing

Automotive Finance Manager
Report contribution
It’s easy and tempting to get caught up in making a large commission. Nevertheless, it’s important to remember to always do the right thing. Always.

Like

What are the best practices for creating and presenting car finance proposals to customers?

1

2

3

4

5

1 Know your products

2 Understand your customers

3 Compare and contrast

4 Address objections

5 Close the deal

Automotive Sales

Rate this article

Thanks for your feedback

More articles on Automotive Sales

More relevant reading

What are the best practices for creating and presenting car finance proposals to customers?

1

2

3

4

5

1 Know your products

2 Understand your customers

3 Compare and contrast

4 Address objections

5 Close the deal

Automotive Sales

Rate this article

Thanks for your feedback

Explore Other Skills