TD Auto Finance changes the
TD Auto Finance launched its TD Auto Loan Protection program this
past June with resounding dealer appeal. TD Auto Finance is the
first Canadian financial institution to take the initiative and
implement this kind of vehicle return insurance in the automotive
The program allows customers who finance their vehicle purchase
with TD Auto Finance to return their vehicle within the first 12
months should keeping up with payments becomes impractical due to
unforeseen life changing events. Approved “life-changing events”
include: involuntary job loss, self-employed personal bankruptcy,
physical disability, loss of driver’s license due to an eligible
medical condition, and in most provinces, international job
transfer or loss of life due to an accident.
Dealers know that car shoppers feel more comfortable buying when
they have the option to return their purchase if their
circumstances should change. The product is complimentary so
it offers a level of good will during the transaction. With
the growing trend of cash buyers today typically using their lines
of credit, the protection provides consumers with a distinct reason
to finance their next vehicle purchase with the dealership.
Dealerships can use the protection program in their on-line
marketing strategies to attract more customers as well as on the
lot or the showroom pitching it as an added-value benefit to
purchase at their dealership.
Will consumers really take advantage of this type of protection?
The returns through a similar program with Hyundai in the U.S.
program paid out over $5-million for cars that were returned by
people who had a major event and needed to use this program.
WALKAWAY and Insurance Insight (RIBO) will provide administrative
and claims’ processing support for TD Auto Finance as part of the
initiative. WALKAWAY became a pioneer of consumer debt protection
in 1999 with the first-ever vehicle return insurance policy to
protect customers from financing shortfalls when life doesn’t go as
planned. The TD Auto Loan Protection program is backed by
WALKAWAY’s 12 years of experience and expertise in innovation,
product development, claims adjudication and their proprietary
This initiative provides multiple win-win scenarios:
► a win for the consumer
► a win for TD Auto Finance
► a win for WALKAWAY
► a win for dealers, salespeople and Business Managers
► a win for dealers who already participate in a WALKAWAY’s
How to get more deals
If you want to get more deals approved, you need to start pulling
credit reports and review them with your customers. Lenders are
seeking to approve an application based on justification or
extenuating circumstances. If the customer is still having trouble
managing their current debt-load, adding a vehicle loan will surely
not help the customer. You should review the credit report and ask
the customer what caused the problems and how they were resolved.
When submitting the application, be sure to build your case for
approval by including notes with the submission. Credit reports are
available on the Dealertrack portal.
A proven Business Office turn
over strategy you can use:
There are dealers who still close their sales based on a cash
selling price without quoting payments. The salesperson informs the
customer that the Business Manager will work out several payments
options for them to choose from that will fit their budget and
proceeds to secure a deal subject to financial approval. If this is
the case in your dealership or when a deal is consummated this way,
there is a highly effective strategy that you can employ.
After completing a credit application with your customer and
reviewing their credit report, develop two fully secured bi-weekly
payment options for the customer to choose from that has all of the
vehicle and loan protection that you have to offer included.
Suggest that they may qualify for one of these and get them to pick
one. Inform the customer that lenders have 4 primary concerns with
financed vehicle purchases:
1-protecting consumers from unforeseen
2-minimizing the cost of repairs that may interfere with repayment
3-maximizing the resale value of a vehicle and
4-protecting consumers’ credit ratings
Further inform the customer that the payment is fully secured and
present all of the vehicle and loan protection that is included.
When you are finished, ask the customer if they would like to
customize the payment to suit their budget and needs or if they
would like to submit the application fully secured to see what the
lender has to say. If they want to customize the payment, ‘peel and
strip’ the protection coverage to suit or use your rebuttals to
maintain your products.
This strategy produces many home runs and should be a strategy that
you learn for yourself.
Determine the true nature of an
Many customers will refuse your vehicle, loan or lease protection
plans for various reasons. The worst objections are those that are
vague in nature. For example: “I think I’ll pass—I’m not
interested—I’ll think about it—or I’ll get back to you on that,
etc…” When faced with a vague objection, attempt to find the true
nature of it by asking the customer if it is the cost that they
have a concern with or if they do not recognize the need or value
of the protection. Customers will indicate that it may be the cost,
the need or both. After determining the specific objection, you can
now use appropriate cost or value rebuttals or both to overcome the
Top performing Business Managers will include rebuttals in their
presentations if they anticipate a customer will have a cost or
value objection to that product. For example, if the customer
likely participates in an excellent group benefit plan because they
work for a major company, include a rebuttal or two in your
loan/lease protection presentation that will overcome that
objection before the customer has a chance to voice it.
Start marketing your products
Most dealerships have not updated their websites to market the most
profitable square footage in their dealerships—the Business Office.
While the cost of developing a website may have involved a
significant investment years ago, the cost to update and add pages
is minimal today.
Industry statistics show us that over 80% of consumers use the
internet to research their next vehicle purchase and they will
likely visit your dealership’s website before calling or visiting
you. This represents a huge opportunity to plant a seed for your
vehicle and loan protection products. Here are just a few
► Why paying cash may not be your best option
► The disadvantages of using your line of credit to purchase your
► How to increase the resale value of your vehicle
► How to minimize your cost of ownership with an extended
► How to re-establish and protect your valuable credit
► How to protect your loan/lease in the event of a unforeseen
crisis such as illness, an accident or unemployment
► What causes paint to fade and how to maintain that showroom-new
► What is a loan payout short-fall and how to protect yourself from
► Why leasing your next vehicle may be your better
Once your customers have arrived to your dealership, you need to
continue the process by displaying P.O.S. materials on the lot, on
your vehicles, in the showroom and in the service department.
Consider using videos or slide shows in your presentations and
up-date your current presentation tools and the exit materials that
you provide customers with.
Your salespeople should also be trained on how to endorse your
protection products and not how to sell them.
Boost F&I profits with
If you are looking to increase your personal income and your
dealership’s profitability, one of the fastest and easiest ways to
do so is to develop a non-prime department. Less than 10% of
franchised dealerships pro-actively markets to credit challenged
customers but yet, they represent up to 30% of the retail
marketplace. The question to ask is; can your dealership afford to
move forward marketing to only 70% of your potential market?
The recession of 2008 left a wealth of new-found credit challenged
customers to work with and personal bankruptcies hit new record
levels. The three most common causes of mismanaged credit are
divorce, unemployment and disability. These people are your
customers and neighbours who have been victims of circumstance and
deserve a second chance.
Wye Management has been the leading provider of non-prime training
and consulting for years and has turn-key solutions for any
dealership looking to develop a non-prime department. Most
dealerships try to figure it out themselves making costly mistakes
often tarnishing their brand or image and failing miserably. They
provide dealers with the short-cuts to immediate results and using
their strategies can increase your retail sales performance by 25%.
Their curriculum will examine:
Dealing with Special Finance Lenders and how to get more
applications approved and delivered
For further information,
- How to develop a “Credit Recovery Program” that you can market
and use with your customers.
- How to match inventory to payment calls
- Marketing and Advertising: how to find credit challenged
customers without tarnishing your brand or image and effective
- On Line Strategies: how to set up free websites and strategies
to generate and capture leads
- How to generate more appointments from leads
- Sales Procedures: how to work with credit challenged customers
and how to maximize profits of aftermarket protection plans
- How to mine your current client base for repeat and referral
contact Anne Preston
Having contests each month for salespeople on Business Office
products that are sold to their customers is a terrific strategy to
build camaraderie, a heightened awareness of how important the
Business Office is and improves performance. Awards can range from
gifts, evenings out for dinner, entertainment, golf, fishing,
bowling and cash prizes. Offering team-building awards creates the
biggest bang for your buck!