Terms
What is CSI?
Customer Satisfaction Index
Page 47
Explain the impact that the time of month can have on deal negotiations.
Monthly bonuses, monthly quotas, manufacturer incentives, spiffs, weather...
Page 33
This is what can happen if a dealership does not pay off the loan they used to purchase a vehicle in a timely manner.
Out of Trust
Page 23
Name the 3 parties involved in negotiating a car deal.
Sales Manager
Salesperson
Buyer
Page 32
Name 2 things that have changed in the automotive industry due to the Internet.
Answers will vary – see pages 41-42 in your course guide
What are the two ways that dealerships acquire their NEW vehicle inventory?
Vehicle Allocation and Vehicle Ordering
Page 18
In this sales system, the customer starts working with a salesperson and when it is time for negotiations to really get under way, they are handed off to another employee.
The Turnover System
Page 36
How do dealerships acquire their USED inventory? Name 4 ways.
Wholesalers, Auctions, Program Cars, Trade Ins, Dealer Trades
Page 20
Is it cheaper to bring a repeat customer into the dealership or to acquire a new customer?
Repeat Customer
Page 48
A dealership wants to sell 300 cars a month, how many leads should they be working? How many appointments do they need to be setting?
1500 Leads
600 Appointments
Rule of Doubles
Page 45
What is the difference between a rebate and an incentive?
Rebate = for the customer
Incentive = for the dealer
Page 38
What is One-Price Selling? Give one benefit and one drawback to the dealership.
The price for the vehicle is pre-set and not negotiated.
Let's talk pros and cons
Page 37
This is the number of days that a bank cannot raise the interest rate on a floor plan loan.
Protected Days
Page 22
Explain the difference between a BDC and an Internet Department
Answers will vary, but basically, a BDC sells appointments, and Internet Department sells cars.
Pages 43-44
Why is it important for a Sales Manager to be able to see the Buyer throughout the negotiation process?
To gauge reactions
Page 14
Explain Floorplan
Floorplan is the loan that a dealership takes in order to pay for its inventory. The loan has to be repaid within a predetermined number of days after the sale of the vehicle. If the dealership does not pay back the loan, they may find themselves out of trust and unable to finance through that institution in the future.
Page 21
What is a Four Square? How are they used during negotiations? What are the 4 sections named?
A Four Square contains four boxes (price, trade in, cash down, and payment). During negotiations it can be used to confuse the customer a bit by showing so many numbers on one page, typically marked through and changed as negotiations progress.
Page 34
What are 3 advantages to the dealer for selling an in-stock vehicle?
Better CSI, Lower Chance of losing a deal, fewer floorplan expenses, faster commissions to salespeople.
Page 49
Name 3 potential problems facing a BDC Department.
Battling the Sales Dept, Pay Plans, OEM Expectations, Turnover, Too many hats
Pages 49-50
What are the 3 types of buyers?
Payment, Difference, Trade
Page 30
What is the Customer Life Cycle?
The idea that a customer will buy a vehicle, come in for service on said vehicle, then come back to buy their next car several years later.
Page 48
Name the 6 steps involved in the Six Step Sales System.
Approach
Interview
Demonstrate
Validate
Negotiate
Close
Page 35
What is Holdback? Give an example.
A percentage of the vehicle's price (typically MSRP or Invoice Price) that is "held" by the manufacturer and periodically paid back to the dealership.
Page 23
Name and explain the 4 buyer motivations.
Pride, Profit, Peace, Pleasure
Page 31
Name 3 different ways that sales prospects can come into the dealership.
Manufacturer Websites, Dealer Website, 3rd party providers, social media, location, etc.
Page 41