PROCESS
What is the most important step of the sales process?
Meet and Greet/Guest Sheet
The biggest advantage of buying a CPO instead of a regular used car
The Warranty
What credit score qualifies a customer for Tier 1
720+
The main goal of responding to an internet lead/prospect is what
Set the appointment
This protects the customer if they get into a total loss accident and they owe more than what it's worth
GAP
When should you ask for the trade in keys?
During the guest sheet, before numbers
This inspection must be completed before a car can become CPO
160 Multi-Point Inspection
What credit score do you need to have in order to get 10k, 12k, 15k miles per year?
There isn't a certain credit score for miles, the credit score tiers them for their money factor on the lease, but not mileage.
Most sales are made after this many follow up attempts
5-8 Follow ups
Most customers don't buy because of this
Payment
What is the goal of the test drive?
Emotional ownership, confirm vehicle selection
What is the CPO warranty?
12 mo/12k miles additional to the 3yr/36k. 7yr/100k powertrain. 1 yr additional PPM. Roadside assistance
What is a Money Factor?
A money factor is the rate of interest a customer pays while leasing the vehicle. Basically the lease APR.
The math for converting money factor to APR (0.00241 x 2400= 5.784%)
The biggest mistakes salespeople make when using the CRM
Not logging customers, not following up, poor notes
These are the 2 easiest ways to lower a car payment
Down payment, and extended terms
What do you do immediately after a customer leaves without buying?
Put notes in Dealersocket and follow up same day
What 3 documents need to be signed by the customer when purchasing a CPO?
CPO checklist, Recall disclosure, Carfax
What is a Residual Value?
Residual Value is a percentage based on what Mazda estimates the value of the car will be after their lease is up (its not always accurate which makes a customer upside down), which is the dollar amount the customer can purchase the car for at the end of the lease.
Notes in the CRM should always include these 3 things
Double points if you can name 6
Last contact, customer interest, next follow up
Trade info, VOI, buying timeline
What does the LTV mean on a deal
LTV- Loan to Value
The amount financed divided by the vehicle value
New(Invoice/MSRP), Used(Wholesale/Retail)
What is the biggest reason customers don't buy the first visit?
Lack of urgency, lack of asking for the sale, price not justified
What are the benefits of adding an Extended VSC on a CPO
Extended VSC on a CPO gives you 7yr/100k on both mechanical and electrical components as well as the powertrain. Also, 1 yr of Tire Coverage ($1000 worth), and 1 yr of Key Replacement ($500 worth)
What are the 4 options available for a customer at the end of a lease?
Buy it out, turn it in and walk away, sell it, trade it in for something new.
These 3 are the most valuable customers in your CRM
Previous customer, Sold customer, Referral
This is what determines whether a deal gets approved or declined by the bank
Credit, Down Payment, LTV, Income