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Handling the ‘I-Got-Money’ Objection

I hope you enjoyed last month’s kickoff article on handling the non-objection objection. This month I take on an objection we don’t often face in the F&I office. But like the non-objection objection, there are plenty of ways to overcome it. Before we get to this month’s objection, remember to submit that objection that’s challenging you. I’d be glad to help.

Name: Ryan Fischer, Business Manager
Objection: “We’re just too wealthy to purchase a service contract. We have no problem taking $10,000 out of our bank account to pay for a repair.”

Tony’s Take: This is definitely a challenging objection, but there is a way to overcome it. See, most customers who offer up this type of objection are proud of the money they have, which means they also want to protect it.

The Approach: In most case, customers with money to spare are either paying cash or financing the vehicle for a short term at an extremely low rate. Customers who choose the latter are individuals who know they can do more with their money than pay cash for the vehicle. If that’s the case, then you need to focus on helping them protect their money.

Pave the Way: First acknowledge the fact that they have money and know how to manage it. When working with a cash customer, ask the buyer if her or she is going to carry full coverage or only liability insurance. If it’s the latter, you may want to start preparing an accept/decline form. 

As for finance customers, again, start off by acknowledging their ability to manage their money. Then ask this: “If the state or finance company did not require automobile insurance, would you still have insurance?” If the answer is no, prepare that accept/decline form. 

However, most customers, whether they’re financing their vehicle or paying cash, will say they would have insurance or, yes, they would have full coverage. When they do, you need to show them a comparison between a service contract and automobile insurance. The best way to do that is by illustrating the differences on a piece of paper. Check out the illustration below to see how it's done.

                            Auto Insurance                                 Service Contact


Cost                      $100 a month                                   $35-40 a month

Cash price            $6000 for 5 years                               $2100 for 5 years

Protects                  Paint & Body             The inside made of 16,000 electrical and mechanical parts

Need                      If you wreck                                     When it breaks

Deductible              $500-$1000                                        $50-$100

Value after use        Goes Down                           Remains the same or increases

What happens       Raise premium                                         N/A

Like using                    No                                                    Yes

Unlimited                     No                                                    Yes


Close No. 1: Once you’ve explained the differences between auto insurance and a service contract, close with this: “If you are going to protect the paint on your vehicle in the event of an accident, wouldn’t it only make sense to protect the inside of the vehicle — the parts that make your vehicle go — and still have money to pay for it?”

Close No. 2: “How long have you paid for auto insurance and actually used it versus how often do things break? And what’s more likely, getting into a wreck or something breaking? Remember, auto insurance protects the outside, while the vehicle service contract protects the inside. What’s more important to you?”

The Inflation-Protection Close: “Think of it this way: You are locking in future repairs at today’s labor rates and today’s parts prices. And what do you think will happen to these rates in the future? Will they go up or down?” 

When they say “up,” respond with this: “So wouldn’t it only make sense to enroll in the service contract to protect your money for the future?”
Product knowledge is critical when facing this type of objection, so be sure you’re prepared. That is all for this month. Good luck and finish strong.

Tony Dupaquier serves as director of F&I training for the Automotive Training Academy, a division of American Financial and Automotive Services Inc. To submit your objection or question, email the magazine at editor@fi-magazine.com.


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