STEP 1: CUSTOMER INTRODUCTION – This should take place at the salesperson’s desk or on the showroom.

“Mr. Smith, my name is Don Bowers and I will be your Business Manager. Congratulations on the purchase of your new Chevy Vehicle. I have three responsibilities and they are to complete all your paperwork for your purchase today, review your manufacturer’s limited warranty, and examine any additional benefits you may be entitled to.”

“This whole process should take about 20-30 minutes so let me join you and we’ll get started so you can enjoy your new vehicle.”

STEP 2: CUSTOMER INTERVIEW – Use the handwritten worksheet or buyer’s order, the credit application and the credit bureau to complete this step.

Worksheets or Buyer’s Order
Purchased Vehicle
“I see you have purchased a 2004 Chevy Pickup with 15 miles. What made you decide on this vehicle?”

“How do you plan to use the vehicle?”

Trade Vehicle
“I notice you are selling us a 2000 Ford Bronco with 81,000 miles. Did you buy this vehicle new or used?”

“It looks like you drive about 20,000 miles per year, is that correct?”

“It looks like you trade every 4-5 years, is that correct also?”

“Do you think your driving habits will remain the same on the Chevy?”

“Did you put all the miles on yourself?” (If so, ask about other vehicles)

“Were the miles trouble-free?” (If the customer answers “No.”, show empathy and fact find) and then ask, “Did you have to pay for that yourself or was it covered under your service contract?”

“Where did you have your vehicle maintained?”

“Do you have the maintenance records if needed?”

Verify Figures and Commitment

If payments have not been quoted:
“It looks like you have agreed to an Initial investment of $1,000 and an unpaid balance of $20,000, is that correct?”

“How can we help you handle the balance today?”

If the payments have been quoted:
“It looks like you agreed to an initial investment of $1000 and 60 payments of $400 to $405, is that correct?”

“So I assume you will be handling the balance with us?”

Credit Application
Introduction
“Mr. Smith, I want to take a moment and review your credit application with you, just in case any of my associates at the banks have any questions regarding your application.”

Customer Information
“How do you normally title your vehicles?”

“Is this the correct address to show on the title?”

“In the event of your death, I assume you would like the free and clear title to go to your estate?”

Employment Information
“It says here you are a (occupation); tell me a little about your job.”

“Is the income on your application net or gross?”

“What percent of this income would you retain if you were to become sick or injured and unable to work?”

Banking Information
“What is the approximate balance in your checking account?”

“What is the approximate balance in your savings account?”

Insurance Information
“I see you have your car insurance with (name of company); what is your deductible with them?”

“Why is it so high?” ($300 or higher) or “Why is it so low?” (under $300)

“How much life insurance do you carry with them?”

“If your vehicle was declared a total loss due to fire, theft or accident, and you owed more than the vehicle was worth, how would you handle the difference?”

“I have a few more questions to ask that are a little more private so let’s go back to my office and we can finish everything there.”

Credit Bureau
“Mr. Smith do you mind if we take a moment and review your credit history, again, in case any of my associates at the bank have a question about your application?”

“Mr. Smith if you had to rate your credit on a scale of 1 to 10 with 10 being perfect, where would you fall?”

“Tell me a little about your credit.”

“In order to keep this a private matter between you and the lender, would you mind writing down everything you just shared with me?”

STEP 3: VEHICLE SERVICE CONTRACT PRESENTATION

Introduction
“Did your salesperson go over your limited manufacturer’s warranty with you?”

“Great, let me take a moment and review again so you know exactly what kind of coverage you have from the manufacturer.”

Presentation
“The manufacturer’s warranty is for 36 months or 36,000 miles, whichever occurs first. You told me earlier that you drive about 20,000 miles a year so you will be out of your warranty in just under two years.”

“It is also a limited warranty meaning it will cover any defects on the vehicle. A defect is simply a bad part or the bad assembly of a part, something that happened at the factory.”

“Let me show you the way it reads in the manufacturer’s warranty booklet.” (show the customer the language your manufacturer uses to describe defect)

“It is much easier to show you how it works, so let me draw a graph for you.”

“The manufacturer will cover any defect, as I said earlier, and that is with a $0 deductible so there is no out-of-pocket expense to you if there is a defect. You also get Emergency Roadside Assistance from the factory, which is a great convenience. If you lock your keys in the car, have a flat tire, or your battery goes dead, you simply call a toll-free number and you will be on your way with no expense to you.”

“You have a separate warranty on your tires and this comes from the tire manufacturer. You can bring your vehicle back to us but the warranty comes from the tire manufacturer.” (Some battery warranties are prorated so include the battery if your manufacturer prorates it.)

“During the manufacturer’s limited warranty, you are responsible for maintaining the vehicle in accordance with manufacturer specifications which, of course, is required to keep your warranty in force.”

“You are responsible for substitute transportation if your vehicle is in our service department for repairs or service. We do have a shuttle service for your convenience, which can take you back and forth to work. We also have a rental agency in our building in case you would need more than a shuttle.”

“You are also responsible for any failures on your vehicle. A failure is different from a defect because it is when a part no longer performs according to manufacturer specifications usually due to normal wear and tear. During the first 12 months and 12,000 miles, though, if anything does go wrong I am sure it will be considered a defect which is why we like to call the first 12/12 the gas-n-go period. You have very little to do but put gas in it and go.”

“After the 12/12, you still have coverage for defects and this is with a $0 deductible, and you also have the Emergency Roadside Assistance from the manufacturer.”

“The tire warranty is now pro-rated which means your coverage will be equal to the life that is left on them according to the respective manufactures. This is based on thread depth.”

“You are still responsible for the maintenance and substitute transportation and the risk of failures will begin to increase as the manufacturer’s warranty expires.”

Risk Responsible
“Once the warranty does expire, you are risk responsible for all repairs as long as you own the vehicle.”

OR ASK customer, "Who will be responsible for repairs once the factory warranty expires?"

“Wouldn’t it be great to have some protection against repairs during this time when you are risk responsible?”

“Do you have any other questions about your Manufacturer’s Limited Warranty?”

STEP 4: CUSTOMER OPTION PLAN

If payments have been quoted
“Mr. Smith you have agreed to payments between $400 and $405 per month and that will deliver a vehicle today.”

“But based on some of things you just shared with me, there may be a plan that would better fit your needs.”

“My responsibility as a Business Manager is to help you examine all the additional benefits you are entitled to.”

OR SAY "I have a moral and ethical obligation to offer all the products we have available."

“How we do that here is with our Customer Option Plan, so let’s take a look at your options.”

Review the top of the menu: the customer information, vehicle information and the numbers that the customer agreed to with the salesperson.

Review the menu thoroughly and as you go from option to option, be sure to tell the customer what he has under each option and what he forfeits from the previous option and what has changed.
“Under the Preferred Plan, you would have a Vehicle Service Contract for 72 months and 100,000 miles. You told me a moment ago, you didn’t want to be risk responsible for the repairs once your Manufacturer’s Limited Warranty expires and this will do that for you.” (Personalize the rest of the VSC presentation based on the interview.)

“You will also have Maintenance coverage for 72 months. As you know you have to maintain your vehicle in accordance with manufacturer specifications to keep your warranty in force and you must do the same to keep your service contract in force.” (CURRENTLY NOT ON MENU)

“You will also be enrolled in the Credit Insurance Protection Plan. The Credit life will pay off the loan in the event of your death and leave your family with a free and clear title. The Disability will make your monthly payment should you become sick or injured and unable to work. The nice thing about these plans is they are not rated by age, health, occupation, or hobbies. There is also no physical required and coverage begins immediately and it pays in addition to any coverage you already have.”

“You will also have complete protection from rust, corrosion, weather-induced fading, acid rain and stains.” (NEEDS WORK ON THIS AREA)

“Finally, the preferred plan also includes Total Loss Protection, commonly called GAP Coverage, so if your vehicle was declared a total loss due to fire, theft, or accident, and the payoff was higher than the fair market value of the vehicle, the GAP coverage would take care of this difference. This difference could be thousands of dollars based on the way vehicles depreciate and the GAP coverage would also cover your deductible up to $1,000.”

“The Value Plan is much like the preferred Plan. Your service contract would now be for 75,000 miles rather than 100,000 and you would forfeit the Maintenance coverage. You would be responsible for your own Maintenance.”

“The Basic Plan is much like the Value Plan. Your service contract, though is now for 60 months and has a $50 deductible and you also forfeit the disability coverage. This means your would be self-insuring your monthly payments should you become sick or injured or unable to work.”

“The Economy Plan is much like the Basic Plan. Your service contract would now be for 60 months and 60,000 miles and would have a $100 deductible and you forfeit the GAP coverage. This means that if your vehicle was declared a total loss due to fire, theft, or accident and you did owe more than the fair market value of the vehicle, you would be responsible for the difference.”

“Do you have any questions about any of your options?”

“Then these would be your payment under each plan, so based on your needs, which one would work best for you?”

If the customer selects the Preferred Option, say:
“Great choice, Mr. Smith. Would you like your payment to begin in 30 or 45 days?”

If the customer selects the Value, Basic or Economy Option, say:
“Great choice, Mr. Smith. Would you like your payment to begin in 30 or 45 days?”

Begin to get the paperwork ready and then return to the customer and say:
“The (Value, Basic or Economy) Option is a great plan. Based on what you told me earlier, I though you would have picked the (Preferred, Value, or Basic) Option. Is it because of the payment or do you simply have a question about the coverage?”

If the customer chooses the base payment with no protection, say:
“Great choice, Mr. Smith. Would you like your payment to begin in 30 or 45 days?”

Begin to get the paperwork ready and then return to the customer and say:
“Mr. Smith, certainly that payment will deliver a vehicle today. Based on what you told me, I would have thought you would have picked one of these options. Is it because of the payment or is it because of the way we packaged it?”

STEP 5: DISCLOSING THE DOCUMENTATION

Begin by disclosing the forms that don’t have figures or number on the. These forms include Odometer Statements, Title Applications, Power of Attorney forms, Rebate forms, etc. Disclose the contract next and then finish by disclosing the products forms (Credit Insurance Policy, Service Contract, GAP, etc.) and finally Buyer’s Order.

Contract Disclosure

Payment
“Mr. Customer, as you agreed, you will have 60 monthly payments of $417.85 per month beginning on the 10th of next month.”

Customer, Dealership, and Vehicle Information
“This is your name and your address. This is the dealership name and address, and this is the vehicle you are purchasing today for personal use.”
Itemization of the Amount to Finance
“This is your sales price including sales tax and this is your initial investment, which brings you to an unpaid balance of $17,900.”

“This is your service contract, credit insurance and GAP coverage which is all part of the Preferred Option you chose. This would be your License and registration fees, which result in an amount to finance of $20,500.”


Truth-in-Lending Boxes
“The $20,500 is also shown here in the Truth-in-Lending boxes and this would be your APR, your finance charge, your total of payments and your total sales price which would include your initial investment of $1,000.”

Back to Payment
“And, again, you will have 60 payments of $417.85 per month beginning the 10th of next month.”