November 11, 2011
Guide to Handling Objections: Key Replacement
Objection: That seems expensive.
Response: The plan basically costs $49 per year (six-year finance) or $59 per year (five-year finance). People pay that for AAA for peace of mind, and AAA doesn’t cover the one loss you are most likely to have with your car. This way, you have a roadside plan that can save you a lot of time and money. What if I could take a little off the price and keep your payment at $297? Would you go with that?
Objection: (For Leases) That seems expensive.
Response: Did you know that the most likely charge you would get at the end of your lease is a charge for around $375 to replace a key? Most people only turn in one key at the end of their lease. Let’s face it, a lot can happen in three years, and they usually misplace the spare. What if I could take a little off the price and keep your payment at $297? Would you go with that?
Objection: I never lose my keys. I don’t think I need that.
Response: I’m sure you’ve misplaced them before and had to search the house, your office or your bag for them, right? Most people do that hundreds of times. Did you know that our parts department cuts more than 150 keys per month? Just imagine the added stress knowing that it could cost you up to $700 for the key replacement, tow and rental. Would you take advantage of it if I could take a little off the price? There’s not a lot of mark-up in it, but I really think you should go with it.
Objection: I wanted to keep the payment at what I was quoted.
Response: No problem at all. You must have your budget well planned. The $279 is what you pay for the car. Key Replacement prevents the car from costing you more down the road. What if you experienced, say a $500 loss from losing your keys? Take that $500 for one year and divide it by 12 – that’s more than $40 per month added to your payment. Now you are at $319 per month for that year. Key Replacement only brings your payment to $289. Does that make sense? What if I can work with you a little to get you Key Replacement and keep your payment at $285? Would you go with that?
Opportunity: I don’t need it, but my wife, daughter or son could use key replacement. He/she always loses her keys.
Response: Great, Key Replacement allows us to offer their program to any family member. We just need to fill in his/her information. We can give him/her a set of key tags now. You get the new car, and he/she walks away with something for his/herself. The best news is that you can pay for it for him/her.
Opportunity: Key Replacement Protection’s high-perceived value and low cost make it perfect as a closing tool for other products.
F&I Manager: You like the warranty I mentioned to you right? The warranty that covers the car, bumper to bumper, for 6 years and 100,000 miles?
F&I Manager: What if I was able to include the Key Replacement protection in the cost of the warranty, and your payment was only $279 – would you go with that?
F&I Manager: Of the products I mentioned, which ones interest you the most?
Customer: The paint, the LoJack, the GAP, etc.
F&I Manager: What if I was able to give you the Key Replacement plan and the paint (or the GAP), and keep your payment at $289? That would be taking quite a bit off the price. I’m not positive I can do that, but if I can, would you go with it?