Some finance managers wince inwardly when buyers of a new or late-model used vehicle say they'll be writing a check for their purchase. It's generally tougher to sell finance and insurance products to cash buyers, dealership personnel say.
But despite the challenge, finance managers still can make the F&I sale by consistently presenting products and emphasizing their value to the cash customer, veteran finance managers and trainers say.
For a service contract, those managers and trainers suggest, stress the time the customer will save handling a big repair. For appearance products, say that vehicles with the protection are worth more at trade-in. For prepaid maintenance, pitch the convenience of arranging oil changes ahead of time.
"Show them what's available and let them decide," said Chris Cochran, F&I director at Haddad Motor Group of Pittsfield, Mass. "Sell the convenience more than anything you've got to offer because otherwise you'll never know."
Of the 158 dealers and F&I managers who responded to a recent Automotive News survey, 80 percent said it's more difficult to sell F&I products to cash buyers.
Cash customers tend to have their minds made up about whether to buy extra products. And service contracts can be a tough sell, respondents said, because a buyer who can afford to write a $30,000 check probably can afford a $2,000 repair.
"They'll say, 'I'll let that $2,400 [for the service contract] sit in my bank account and collect interest,'" said George Angus of Team One Research and Training in Phoenix. "And you really can't fault that thinking."