Why, Yes! I Can Speak Consumerese!

I often think that my first year working in a law firm was kind of like studying abroad. After all, I had spent a bunch of time in dealerships, which, for good or for bad, have their own very specific language. But, when I came to the law firm, I was surrounded by folks who used very unfamiliar words to describe what, to me, was a familiar process. And, I can’t begin to tell you how many times my car slang met blank stares. It didn’t take me too long to learn that I’d have to make a few adjustments.

Now, after having spent several years as a compliance attorney, I think you could safely say I still speak “dealerese,” but with a heavy legal dialect (dealerese is my native language, after all). I slip into that spunky dealer-speak banter from time to time, but I always try to make sure I speak in a language my audience understands. After all, it really doesn’t matter what you know if people don’t understand you, right?

Nothing could be more true in the F&I department, especially when it comes to conversations with customers. Unfortunately, we hear more than our fair share of stories about customers who feel like they’ve been taken advantage of by finance employees who misrepresent the nature of the finance transaction.

According to a recent news article in the Southeast Texas Record, a Texas Dodge dealer is learning just how important it is to properly describe the nature of the sales and finance transaction when working with customers. According to the article, an angry customer claimed that the employee promised to help her find a car “loan” and would negotiate to secure favorable financing terms.

The suit states:

“In connection with the sales presentation made by Defendant to Plaintiff, Defendant made many material misrepresentations to Plaintiff including but not limited to misrepresenting the authority of the salesman to negotiate a sale with Plaintiff, misrepresenting in a manner which resulted in confusion as to the affiliation between the Defendant and the finance company chosen by Defendant; representing a false affiliation between the Defendant and the contract assignee; and concealing facts from Plaintiff in order to induce Plaintiff into a transaction that Plaintiff would have otherwise not entered into.”

The article also reported that the dealership allegedly failed to comply with a Texas law governing the use of model installment forms, or non-standard forms, and failed to make required disclosures adopted in the Model Contracts approved by the Officer of the Consumer Credit Commissioner. In her complaint, the customer alleged, among other things, negligent misrepresentation and fraud.

Now, I have no idea what happened in this particular case, and, I’m not naïve enough to think that there aren’t dealers or dealership employees who deliberately misrepresent the transaction to the customer. However, I think stories like these are often just as much about dealers speaking a little too much “dealerese” and not enough “consumerese.” Maybe it’s time to learn another language?

Here’s some free advice for folks who earn their bread in F&I. Choose your words carefully—very carefully. You may have picked up your sales spiel from the best trainer in the world or the most successful finance guy in your 20 group, but none of that will matter if your customer walks out of the box with a mixed-up idea of what role the dealership plays in the transaction.

The finance department should never say or do anything that would give the customer the impression that it is working on the customer’s behalf or working to get the “best rate” for the customer. While you’re at it, words like “loan” and “lender” should be stricken from the finance manager’s vocabulary (unless, of course, the dealership is actually originating loans and not assigning installment contracts).

Dealers and GMs don’t exactly get off the hook here. Why not take some time to train your employees on the nuts and bolts of the transactions in which they engage day to day? If you haven’t invested in some quality ethics and compliance training, now is just as good a time as any. Don’t have room for it in your budget? Maybe download and print out copies of “Understanding Vehicle Finance” for your folks to read. The publication is produced by the American Financial Services Association and National Automobile Dealers Association, bears the seal of the Federal Trade Commission, and is free.

While you’re at it, have all your employees read it; you’d be surprised how many people work at dealerships and don’t understand the sales and financing process. We even recommend that dealers have copies available to give to customers. The document isn’t copyrighted, and the only cost is for printing. And it’s available in English or Spanish!

Speaking a little more “consumerese” and a little less “dealerese” can take you a long way toward reducing consumer confusion and eliminating the risk of claims that the dealership misrepresented the role of the dealer or the relationship between the parties.