How to Get More Deals Approved: Be Prepared!
by: Mike Boolos
 All of us have heard that we should be prepared. It's the Boy Scouts motto and should apply to all the tasks we attempt in our daily business. It is very true for the professional Business Manager. Preparation is the key to success in selling your paper to your lenders. You must be able to properly structure each deal, research your customer's background and present an attractive loan package to your buyer.
In many ways your job is similar to an attorney defending a client. Regardless of his client's guilt or innocence he must present a competent case. He never asks a question to which he does not already know the answer. Through the discovery process he is able to view and analyze the prosecutions case. His goal is to gain an acquittal. If not, he then strives to minimize the sentence. He is aware of the judge's record and what to expect as far as rulings and sentencing. All in all he spends a tremendous amount of time and energy preparing each case.
Your job is to present an attractive loan package. Your judge is your buyer. We quickly learn what each buyer looks for in making their decisions and should be able to know what their rulings will be. Always strive for an approval, but at the very least work for a condition. Remember a reject is a death sentence to your sale.
Build Your Case
As you prepare each of your customer's cases remember your responsibilities on each deal.
1. Always interview the customer at the point of commitment. This enables you to gather all of the necessary information and increases your credibility with your lender. Remember the lender should never know more about your customer than you do.
2. Review credit bureau reports prior to submitting your application.
3. Analyze the credit information for strengths and weaknesses.
4. Always strive for an approval. Work for a condition rather than a turn down.
5. Always send the deal to the lender you have the best chance of getting an approval from first, and then try your other sources.
Know where your dealership stands with each lending source. Are your losses out of line with their standards? What about your delinquency and repossessions? If your dealership has a good portfolio you can use this to get more deals approved.
Lender Relationships
Also, work on improving your relationships with your lenders. Get to know them on a personal basis. If possible, take them to lunch occasionally, or maybe stop by their office some time with donuts or snacks for the entire staff. This is a small investment for the benefits you will get in return. This isn't always possible because many lenders have central locations that may be located several states away. If this is the case, work on developing a telephone relationship. Learn what they do on their off time, any hobbies, background in the business. Be able to talk to them occasionally about something other than the deals you want bought.
Protect Your Reputation
Be honest about all aspects of your applications. In today's selling climate there is intense pressure to get deals approved. Remember your business and personal reputation is on the line. Also in some cases misrepresentation may result in criminal charges.
Four More Quick Tips
1. If a deal is rejected or conditioned for several reasons isolate the objections. You can't overcome three or four objections at once. If you can't overcome the first one, the rest don't matter.
2. The lender knows your job is to get the deals bought. Hold your buyer accountable for his reasons for not buying the deal.
3. Also know when to give up. Don't push so hard that you damage relationships. If you really believe in the deal let them know you would like to talk to their supervisor or get your General Manager or Dealer to call the lender.
4. Document and analyze your lenders performance. Be able to justify to the dealer and lender why you placed your paper with various sources.
Improve your approval ratio by implementing these guidelines. There is no better way to gain the respect of your sales team than to help them get more new and pre-owned vehicles delivered.
For more information on Mike Boolos and The Assurant group go to www.assurant.com or :
260 Interstate North Circle
Atlanta, Georgia 30339
Contact us toll-free at 1.877.651.1032 |
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