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?
1200 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
Price clearly marked on vehicles. Vehicle prices are bottom-line and non-negotiable. Price posted on vehicle include a 'reasonable profit' for the dealership. Salespeople don't instantly approach customers. F&I managers and F&I products often are the only part that can negotiate.
Page 37
This is the number of days that a bank does not 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
Define Floorplan and explain the overall process.
Floorplan is a loan that a dealership takes in order to pay for its inventory. The factory builds the vehicle, ships to the dealership, who take the loan out to pay for the vehicle. Once the dealership sells the vehicle, they must pay off the loan.
Page 21
What is a Four Square? What are the 4 sections and how are they used?
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
Explain 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 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