As someone about to buy a car I disagree 100% on this "how a customer thinks." I would never buy a VSC if the dealership was making more than a $500 profit. So I should be happy the dealership doubles the price of what it actually costs them?
Remember its what the customer sees the value. Just like a new car or anything i buy, I study something and set a value to that product or service or i simply do not buy it.
You are confusing who the real customer is, because the guy who comes in and buys the car is not the customer. He is just some schlep who your job is to get as much money off of him as you possibly can to satisfy your real customer. Your real customer is the owner of the dealership. When you think about it like that, it actually makes sense.
The F&I Manager is trying to save you money as well. Studies have shown that the average person does not have funds set aside for a large vehicle repair. Some do, but most don't. The Vehicle Service Contract can save you money by paying for that repair, and you're able to budget in the cost of the vehicle service contract into a low monthly payment.
@FinanceManagerTraining If it's a new vehicle, it comes with a bumper to bumper warranty. You don't need the extended warranty for years to come. The EXACT extended warranty can be purchased for FAR LESS from other companies such as Car Edge. So tell me big boy...why would I pay your inflated price when I can get the same damn thing for less from someone else????😂 Also, the service contract DOES NOT have to be purchased that day. They can be purchased AT ANY TIME! Why don't you tell people that??? Huh, Mr. Honesty???😂😂
To be honest, lets say I'd alreay agreed the price of the car, getting..... this might break, that might break, something WILL probably break could be thie thing to just put me off buying car in the first place and walking out of the deal.
And that would be your right to do so, if you wish. However, the majority of customers prefer to know their options and then make a decision from there.
Some of this depends on the brand. Honda for example has very low VSC costs. Sometimes will profit the same amount by selling a $2,000 Honda VSC as you would a $3,000 Chevy VSC.
Not at all. Some of our wealthiest customers are the ones who see the most value in Vehicle Service Contracts. They see the value in not only the money savings, but also the convenience factor.
They are right, every customer that has the money buys one, it's the weirdest thing. I get pens on cash deals all the time, I just explain it right and do my job.
As someone about to buy a car I disagree 100% on this "how a customer thinks." I would never buy a VSC if the dealership was making more than a $500 profit. So I should be happy the dealership doubles the price of what it actually costs them?
I used to nickel and dime people until I figured out that I could make no more money than my hourly wage....😊😊😊
I like that. I'm going on my 1st F/I interview at a major dealership TODAY!! I just found your channel lmao
Did you get the job?
that's a point of view, years of doing f&I showed me that you can't be that presumptive
Years of doing F&I made you want to give discounts?
Provide value and hold gross.
Remember its what the customer sees the value. Just like a new car or anything i buy, I study something and set a value to that product or service or i simply do not buy it.
These training guys seem to view customers as enemies... You can see the contempt in their eyes... I would walk away from this fool.
You are confusing who the real customer is, because the guy who comes in and buys the car is not the customer. He is just some schlep who your job is to get as much money off of him as you possibly can to satisfy your real customer. Your real customer is the owner of the dealership. When you think about it like that, it actually makes sense.
Interesting to see the other side here. Usually the videos we see on UA-cam are for the customer to save them $
The F&I Manager is trying to save you money as well. Studies have shown that the average person does not have funds set aside for a large vehicle repair. Some do, but most don't. The Vehicle Service Contract can save you money by paying for that repair, and you're able to budget in the cost of the vehicle service contract into a low monthly payment.
@FinanceManagerTraining If it's a new vehicle, it comes with a bumper to bumper warranty. You don't need the extended warranty for years to come. The EXACT extended warranty can be purchased for FAR LESS from other companies such as Car Edge. So tell me big boy...why would I pay your inflated price when I can get the same damn thing for less from someone else????😂 Also, the service contract DOES NOT have to be purchased that day. They can be purchased AT ANY TIME! Why don't you tell people that??? Huh, Mr. Honesty???😂😂
Y’all know you can cancel the service contract and gap insurance right?
Of course, that's why it's worth getting the coverage even if you plan on only keeping it a few years.
I understand. But not everyone can afford to add these things to the finance contract when car pymts are already high
If you can’t afford the to pay $40/mo for the warranty, then how do you expect to afford a $1,500 unexpected repair on top of your monthly payment?
@@seanlincoln513 Spoken like a true car salesman!
@@seanlincoln513 The real question is. Are they selling you a reliable vehicle at a fair price? If so extended warranties wouldn’t be necessary.
@@jwaynecitizen if you are not 1000 % sure you will ever have an issue with a vehicle (30000 moving parts) there is value here.
@@leond9677 no there isn’t. Especially if you’re buying it from a sleazy F&I person at 3 times the price.
To be honest, lets say I'd alreay agreed the price of the car, getting..... this might break, that might break, something WILL probably break could be thie thing to just put me off buying car in the first place and walking out of the deal.
And that would be your right to do so, if you wish. However, the majority of customers prefer to know their options and then make a decision from there.
@@FinanceManagerTraining thankyou for your reply 👍🖖🇬🇧
…or it’s because they did their homework and the price is too high.
the problem is you're only asking $2000 for your VSC. Build value in your product.
Some of this depends on the brand. Honda for example has very low VSC costs. Sometimes will profit the same amount by selling a $2,000 Honda VSC as you would a $3,000 Chevy VSC.
oh dear
Great video
You must hate people that have large emergency funds ;)
Not at all. Some of our wealthiest customers are the ones who see the most value in Vehicle Service Contracts. They see the value in not only the money savings, but also the convenience factor.
They are right, every customer that has the money buys one, it's the weirdest thing. I get pens on cash deals all the time, I just explain it right and do my job.