Financial services managers in the auto industry are often misunderstood by the sales team and the consumer.

For a variety of reasons I have not posted any articles for quite sometime however, I do expect to post regularly in the future.  Thank you for coming by.  Give me your comments, diggs, tweets etc. as you feel is appropriate.

The financial services manager in the auto industry is commonly referred to as the “business manager” and is responsible for a wide variety of extremely important tasks.  To be remarkably successful in this position you must employ the skills which sales person uses while simultaneously drawing upon several others.  Moreover, you have less time to accomplish success.  I do not intend to fully discuss here all the tasks, responsibilities, and required skills to be a successful financial services manager but rather touch on the topic of how this position is often misunderstood.

In this article I’m going to refer to financial services managers as business mangers.  That is the term most used in any given dealership.  Business Managers are responsible for completing all associated paperwork in the cash or credit transaction of selling a motor vehicle whether it be a new or used car, a motorcycle, or recreational vehicle.  The tasks and responsibilities are pretty much the same.  The task of completing the paperwork is not mutually exclusive to the responsibility to generate profit for the dealership.  The “business office” is generally an integral part of a sales department profit center or, it is considered a profit center on its own.  Nevertheless, the business manager must generate profit in addition to providing exemplary service to the customer with respect to time, accuracy, disclosure, and value.  In teaching others this position one of the first things I needed to get across to the student was this: you have a short time line by which to accomplish much.  A business manager must be highly organized, efficient, and accurate.  However, on the other end of the personality spectrum, the business manager must be excellent in establishing rapport quickly.  He or she must mirror the client similar to that which the car sales person does but also has to effectuate trust and believability quickly.  One major learned skill set that dramatically improves a business manager’s success is the ability to project an image of knowledge, professionalism, authority, and empathy all at the same time.  The time line is generally less two hours total for the business manager.  I’ll explain later why this shortened time line often causes sales people in the dealership to be confused, envious, and sometimes non-cooperative.

From the consumer’s perspective.

Many consumers do not have a clue as to the purpose or role of a business manager in a car dealership.  Amazing but true, many consumers are ignorant of the amount of paperwork necessary to purchase a truck, car, or RV; or its importance.  Other consumers stereotype all business managers as members of group in the automotive business not to be trusted.  ”They’re just here to try and sell me a bunch of crap I don’t need.”   It is up to the dealership, the sales person, and the business manager to properly educate the consumer to understand the importance to them in dealing with a competent business manager at the dealership.  If the value and benefit is not communicated, the consumer will leave with a poor taste in their mouth and/or the general feeling that he or she was taken advantage of.  This is a major responsibility for the business manager however, the most successful people in the position usually have the support of management and sales staff in terms of educating the consumer to the value provided them.

It is the business manager’s job to complete all paperwork promptly, accurately, and with full disclosure to the consumer.  Additionally, the manager must present the various options to the consumer even when it appears that the customer has his mind made up as to how the transaction should be handled.  For example, a customer may say, “I’m paying cash,” for their purchase of whatever vehicle.  This may very well not be the best thing for the customer to do but she doesn’t know it.  Once presented with the impact of the total cost of purchasing the vehicle by a competent and empathetic business manager, the customer may appreciate the information and change her mind.  In doing so, undoubtedly the business manager has established value to the customer.  Is it often better for the customer not to pay cash? Absolutely.  Consumers do not know that the business manager’s job is to present intelligent options to the customer in addition to preparing a bill of sale.  Business managers are misunderstood by consumers and its primarily their own fault.  Why?  Because business managers do a poor job of communicating to the customer what to expect, what is going to happen next, and what information is needed and why.  By communicating to the customer that it is vitally important to them that they received all the information necessary to make intelligent decisions on their own behalf, most consumer’s will give you the benefit of any doubt and allow you to proceed.  When kept in the dark as to what, why, how, and when–consumers understandably are mistrusting, on-guard, and thus in a hurry to get out of there!

The improper perspective of the sales staff.

Business managers are paid by commission.  If the business manger is successful it means that he or she has properly presented the value of various products or services to the customer and that the customer recognizes and appreciates the value to the extent that he or she purchases the products or services.   There is always a cost benefit analysis that the customer engages in.  Some purchase the business office products or services, some customers do not; so what?  The key to overall success in terms of customer satisfaction and financial success to the business manager and dealership is that the information was presented in such a manner that the customer understands and makes the right decision for themselves.  Often a business manager will present various options in terms of purchasing the motor vehicle i.e., cash vs. credit vs. leasing.  From there, the business manager will need to quickly but clearly explain the various maintenance options to the customer.  These options may include extended warranty programs, life and disability insurance plans, road side assistance, road hazard protection, and chemical protection products.  Moreover, the business manager needs to make sure the customer understands the various lengths of manufacturer warranty provisions–what is covered and what is not.  In addition to providing the customer all of that information in a very short period of time in a clear communicative manner, the business manager will often have to provide several payment options (terms, rate, amount financed) if the customer has decided to finance the transaction.  Lastly, a business manager must be prepared to overcome a host of potential objections quickly, professionally, and in doing so continue to ask for the business.  In a number of these transactions, it is possible that the business manager will earn a larger commission than the sales person earns from selling the car.  Here is where the improper attitude kicks in.  I have actually witnessed this disease in a automotive dealership.  The sales staff was generally poisoned in their thinking that the business manager was earning too much money i.e., more than they did on any given car deal.  Naturally, greed and envy are powerful forces when left unchecked.  A war brewed and the result was just what you might expect from human personalities.  Although the dealer principle was aware of these issues, feelings, and improper perspectives by the sales staff, he did nothing to correct the situation–did nothing to stop the war before it got started.  Before long, key sales people were actually taking it upon themselves to advise customers not to consider some or all of the products and services the business manager would ultimately discuss with them!   In other words before a customer was introduced to the business manager, the sales person had already poisoned the minds of their own customer with respect to the business office in the very dealership the customer was going to buy a car from!  Sounds incredibly stupid and is.  True story.  From observing that situation, I learned how important it is to fully educate a sales staff as to why a business manager may earn more commission on a transaction than they did.  This requires that the sales staff have somewhat of a comprehensive understanding of the major responsibility that the business manager has on his or her shoulders in addition to an understanding and appreciation of what it takes for someone to be successful in that position.  I know that to be truly good at selling cars in today’s market environment, it takes a considerable amount of skill, persistence, and determination.  More so to be a successful business office manager.  What are you thoughts?