Subprime Phone Call Objectives

Dealers complain, “I’ve got them approved; I just can’t get them in.” Immediately, I know what is going on. There is no real process in place to properly deal with the critical first step in the handling a subprime customer: the phone call.

Why does this happen?
The primary objection the subprime caller has to visiting your store is getting approved. Many callers want to be pre-approved before visiting the dealership. Just like your traditional customers, they don’t want to waste time. They don’t want to be embarrassed if they are turned down.

Pre-approving customers before they visit the dealership is a bad practice. Not only will you have to call them back and play phone tag, but you’ll raise a whole new series of questions that may lead to objections you are not prepared to answer. Additionally, now that they know they are approved, they have gained the confidence to shop around. Let’s face it; many people want to take the path of least resistance. Most dealership personnel would rather face the objections on the phone after telling a prospect they are pre-approved, rather than tell a customer, face-to-face, that they could not get the deal done.

One Exception
The only time you should consider getting a customer pre-approved before they visit your store is if the prospect lives a long distance away. Other than that, the time to get them approved is when they are at the store.

Six Objectives of the Subprime Phone Call

1. Set a meeting time.

2. Qualify the Customer – You will notice I did not say pre-qualify. Of course, we need to determine that the customer has bad credit (I have used, “Are you calling to establish or re-establish your credit?”), but after that, the only knock-out punch would be income and employment. If the prospect’s income is not verifiable or below the minimum, we will not set a meeting with them unless we believe there is a high probability of getting a cosigner.

3. Gather or Confirm Information – Name, address, phone number, alternate phone number and e-mail address.

4. Give Them Your Information – Name, address and phone number. Ensure they know how to get to the store, and have them read back the information.

5. Stip List – Have them write down the stips required, and then have them read the list back to you.

6. Prevent Them from Shopping Elsewhere Until You Meet with Them – Tell them why they shouldn’t shop elsewhere and leave them with the positive feeling that they found the right place.

Key Points Regarding Phone Calls

• Focus – There is nothing more important than the customer you are on the phone with. Stop doing everything else, and focus on that.

• 10 Minutes – Expect the call to last 10 minutes. If you do not have 10 minutes, get the prospect’s contact information, give them yours, finish what you are doing and then call them right back. If you can’t get back to them in 15 minutes, give the lead to another salesperson or manager who can spend 10 minutes with the prospect.

• Phone Up Sheet – Whether it’s in your CRM or on a sheet of paper, you need to have something in front of you to take notes. If you are just starting, use the manual process, and as you gain confidence, you can move to the computer.

• Use Their First Name – When conversing with the prospect, use their first name as much as possible, but not so much that it becomes annoying.

• Know Your Area and Relate to the Customer – You should be able to name something close to their house that you both can relate to. I remember the first time I was making calls. The manager gave me this bit of advice: “If they are from the east side of Detroit, ask the customer ‘Isn’t that right down the road from that one Coney Island—what is the name?’ And if they are from the west side of Detroit, ask the customer ‘Isn’t that right down the road from that one donut shop—what is the name?’” The customer lit up based on the fact that I was familiar with where they lived.

• Ask the Right Questions – When on the phone with a customer, you should ask open-ended, fact-finding questions and alternative-choice questions. Instead of asking, “Have you had a bankruptcy?” you could ask, “Can you tell me a little bit about your credit history?” Ask, “What are you considering to use as a down payment?” instead of, “Do you have anything to put down?

• Limit Yes or No Questions to Yes Answers – Ask questions like:
o “Would you like me to help you?”
o “Before I go to work on this, can you promise not to apply anywhere else?”
o “Did I explain that well enough?”

• Don’t Interrogate the Prospect – Other yes and no questions may make the prospect feel as if you are interrogating them. It also leaves an opening for control to transfer to the prospect through a “No, but …”

• Focus on Financing and Getting Them on the Road to Re-establishing or Establishing Their Credit – Never ask the prospect what kind of car they are looking for. If the subject comes up, use the alternative-choice questions; for example: “Are you looking for a car, truck, or SUV … 2-door or 4-door … darker color or lighter color?”

• Stay Away from a Specific Car – If the phone up inquires about a specific car, try and determine which attributes attracted them to that car. For example: “That’s a nice car; a lot of people have inquired about that one. Out of all the cars out there, what keyed your interest on that one?” Take notes, but do not try and get them off that car on the phone. They may qualify for it, and your job will become easier.

• Ask for Permission – Before you set a time for them to come into the store, ask for their permission. For example, “I’m certain I can help you. Would you like to go to work on this?”

• Ask for Their Help

• Determine if They Are Shopping – Ask the prospect, “How many other places have you applied? I don’t want to make the same mistake they did. Could you tell me what happened there?”

• Suggest a Better Time – If you landed on a weekend or evening meeting, suggest a better time near the end of the conversation that will save them time and provide better service. For example: “It sounds to me like you are not only interested in saving money, but you are also interested in saving time as well. Am I right? Is there any way you could make it in sometime today or tomorrow?”

• Track Your Results – The key to any word track is to know whether it is working or not. For you to know whether it is working, you have to track your numbers (even if the dealership doesn’t). If things are not working, you need to make changes.

The phone is the best tool you have. If you use it properly you will increase your sales. Get the customers to the store first, then get them approved. Let them know they have come to the right place, and make them feel comfortable with their decision to come to you for help. It will take hard work, discipline, practice and continual tweaking, but if you make those commitments, it will all be worth it.