Problem With Credit: Steer Prospects With Bad Credit Toward Used Bikes |
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Many prospects walking into your dealership are likely to be facing problem with credit. Despite an assortment of subprime offers from lenders for them, at times they can be seen as your opportunities to increase vehicle sales. If done properly, sales staff can be restricted to selling bikes, leaving the financing to the F&I department for consumers with problem credit. In finalizing the sale of a new bike, the sales rep handles a customer statement, distinct from credit application. The F&I department reviews it before forwarding to the finance source for speedy response.
Following the callback with either a qualified approval or turndown, the prospect can be led to a preowned bike that is a closer match for the lender's guidelines. It isn't necessary for the sales rep to let the prospect know that the bank's approval was denied due to problem with credit. Instead the rep finds him a used version of the bike that is more in line with the bank's callback approval. Then the rep reverts to F&I for details on the vehicle. F&I gets in touch with the lender for an approval for the used bike. This time the rep hands the prospect over to the F&I manager. The role of the rep is best restricted to a charming introduction to the F&I manager who does all that's necessary to divert the prospect to a different bank. To achieve this aim, the F&I manager may require a number of sales techniques, while the rep gets the used bike to the delivery point: the front door, next to the rider's trade-in or anywhere else. When handled effectively, the process should not hamper customer satisfaction. In other words, the rep avoids letting prospects know what is not possible due to their problem with credit and instead enlightens them on the possibilities. Therefore, the prospects don't return empty-handed but with a used bike. Eventually both parties stand to gain. Cooling-Off Period Remember that problem with credit is only one of various factors taken into consideration by a lender when fixing the price. The other influencing factors include age, type of car being used, the number of miles covered and how rural or urban your neighborhood is. The extent to which your credit record can influence your loan also depends on the state you live in and the company chosen. What one company may consider good credit may not be as good a score for another. If the lender turns down the second application as well, the F&I may try another lender, time permitting. On having the same result, the sales rep assures the prospect of working hard on their behalf and contacting them in a few days time. The F&I then leaves the matter aside for some days. The finance source can sometimes work on quotas, and if F&I stalls until the end of the month, the bank can review the application again and be open to the possibility of shifting to a less experienced bike, despite having a problem with credit. Occasionally the sales rep or used bike manager selects a used bike that puts the application in a new perspective. The application is resubmitted by the F&I with different bike information. There is a chance of the deal finally getting approval, and on doing so, the sales rep doesn't simply inform the buyer having problem with credit about it on the phone but invites him to meet with the F&I with the promise of some good news worth celebrating. Consequently the buyer is taken to the F&I manager by the rep to do its bit by congratulating the new customer for approval on that particular bike. While the customer is with the F&I manager, the sales rep readies the bike at the delivery point. The entire process need not use any strong arm tactics. The techniques are meant to boost your used bike sales. Also may customers suffering problem with credit settle for the used bike with the intention of returning after a year or so to try once again to buy the bike that was their original choice. |
