Financing is a powerful tool to help increase approvals, closing ratio and overall sales volume. The key to successfully implementing any financing strategy is ensuring to utilize all the tools available to dealers through the Financeit platform.
Lead with financing at the start of the sales cycle
Leading the conversation with a low monthly payment makes it easy to position any product within a customer’s monthly budget. By focusing on the advantages of financing, sales professionals can move the conversation away from budget concerns and towards the excitement of getting the customer’s project finalized.
Relating a payment plan back to similar everyday household products such as hydro bills, mortgage payments, or auto financing is a great way to make the customer more comfortable with a payment plan.
Offer payment deferrals to increase ticket size
Payment deferral promotions are designed to increase application volume and ticket size all while being cheaper than our standard programs. Offering customers a “buy now, pay later” option, gives increased flexibility over their budget while they get use of the product now.
Positioning a product at an affordable price increases chances of a customer deciding to add more products.
Use Interest Rate Buy-Downs on larger payments
Interest rate buy-downs are an effective way to increase approvals. A buy-down is a program that enables dealers to lower the interest rate presented to the customer by taking the cost off the original price.
Leading with a financing option such as a buy-down is a simple way to ease a customer into the idea of using financing. Implementing this into a sales strategy, enables dealers to address a customer’s interest rate objections by offering a lower rate option.
Buy-downs are most effective when your customers are taking on a larger project as a lower interest rate has a noticeable impact on the monthly payment.
In the current economic climate this can be another effective way to get a customer in and ready to buy today by locking in an affordable rate for them.
Use Prequalification to increase approvals
By using our pre-qualification feature, dealers can quickly determine whether a customer is likely to be eligible for financing. When opening up the financing conversation, they can use this as a tool to verify eligibility.
Using just a few pieces of non-sensitive information, dealers can learn whether the customer pre-qualifies in a matter of seconds, without affecting their credit score.
If pre-qualification is not an option for the customer, there is also the option to add a co-borrower to the application instead. This ensures financing is still a viable option for them despite not being pre-qualified.
Reach out to your account manager for more information