How To Sell An Intangible – A Finance And Insurance Sales Training Example

Finance and insurance sales training:

Many years ago I had my first sales assignment as a finance and insurance salesperson at a Chrysler automobile dealership in North Carolina.

I remember one of my first customer’s was Mr. & Mrs. Jacobs. They were a middle aged couple with one teenager still at home. They were buying a new Chrysler that would primarily be Mrs. Jacobs car.

There is one big difference in auto sales training and finance and insurance sales training. In car sales you are selling a tangible item the prospects can see and feel. In finance and insurance sales you are selling an intangible the prospects can’t see and feel. One is not better or worse they are just different and require different sets of selling tools.

The products I sold as a finance salesperson were things like extended service contracts, credit life insurance, accident and health insurance, and the actual financing of the vehicle they were purchasing.

Two intangible selling tools used in finance and insurance sales training

Intangible selling tool #1 – Savings / cost comparison:
First I presented to the Jacobs an extended service contract and Mr. Jacobs said he didn’t want it.

Then I showed him a list of 10 of the most common types of major repairs people need to have done on their vehicles that the extended service contract covers. Next to each item was listed the labor hours required to do the repair multiplied by the average per hour labor rate for the local area. And next to that was the average parts cost of that particular repair. Most of these individual repairs came to a total of parts and labor cost of over a thousand dollars some were several thousand dollars.

I then showed him and extended service contract that was priced at $599. I also showed him the details of the coverage and how each of my 10 common examples would have been fully covered. This could possibly save him thousands of dollars in repair costs depending on the type of repair.

After showing him how much his potential savings could be and then comparing it to the much lower cost of the service contract he agreed to buy it.

Intangible selling tool #2 – Protecting a loved one:
The second product I presented to the Jacobs was credit life insurance on their car loan. Again Mr. Jacobs responded by saying, “I don’t need it.”

I agreed with Mr. Jacobs that he may not need the credit life insurance but his wife, who was a stay at home mom, may need it one day. I explained that if he were to unexpectedly pass away his wife would be required to continue making the payments on her car if she wanted to keep it.

I them gave him two examples of actual situations I knew of regarding credit life insurance on cars where the husband passed away.

After that, Mr. Jacobs wanting to protect his wife said he would take the credit life insurance on their car loan.

The finance and insurance sales training take away tip
How to sell an intangible? In both situations I was selling a product that my prospects could not see or feel. And with the above two selling tools I turned the product’s benefits into something my prospects could see and feel.

Try using these selling tools on your next intangible product presentation and watch it improve your closing success.

Guaranteed Auto Credit From Auto Net Credit Centers

Presently, there are many Auto Net Credit Centers that auto finance endorsements from instant Easy Credit Auto marts in the USA. Now you can even get an okay for Instant Car Loans from banks, credit unions and even from any local auto mart even if you have a poor credit balance. After completion of the auto loan endorsement, an agent from the department will immediately process your request. The representative will then contact you and discuss what you need to settle on which car loan option is suited best for your circumstances.

Easy Credit Auto sales are meant for people who face credit problems that do not meet the criteria for loans from banks and credit unions. This online car loan application is completely secure and if anyone is planning for a car loan, these auto credit centers are the right place as they have made it easy for anyone in the United States with credit problems to buy a car. There are many reasonable auto credit loan choices for consumers with fair, poor, no, slow and low credit scores.

An instant credit approval depends on what information the applicant submits online. All information, for example where employed and salary has to be verified. The applicant should be as precise as possible while completing the online easy credit application form. If any part of the information submitted in the application does not match with what is verified, the instant car loan authorization will be annulled.

So if the salary, employment and all other information submitted is correct after verification, the guarantee of the car loan will be approved. All approvals are based on what is affordable on a monthly basis. Money down will be required if the car that is bought is more than the approval amount.

While applying for a Guaranteed Car Finance agreement, the applicant should set realistic expectations like selecting the right car, as this is the most vital part in getting a Guaranteed Car Finance loan approved. As soon as the auto mart sets a financial plan for the applicant, they usually give the nominee a choice of three or more cars. Once the selected applicant picks a particular car, he/she should have it thoroughly checked by an ASE Certified Master Mechanic.

The next immediate thing to reflect on is the Guaranteed Auto Credit as the loan term should preferably be kept as short as possible. If there is enough space in your budget once you’ve cut down on the term, consider the purchase of GAP insurance and/or an extended warranty to cover the length of the financing contract. In particular, the first auto loan with poor credit will have the interest rate quite high, so the shorter the term is kept, the less the interest paid.

So now with so many Auto Net Credit Centers an easy auto loan approval online is easily available. This premier EZ application will take just a minute to complete. All information submitted by the consumer is kept completely private and guaranteed secure.

Auto Repossession Before Bankruptcy

The other day I received a call where an individual asked me whether filing bankruptcy would allow for a car that has been repossessed to be returned. Although my response probably failed to satisfy the caller (the usual attorney response of it depends), here is what is required in California (at least how the courts have viewed the law).

Background

In most vehicle contracts the lender retains a right to repossess a vehicle if the borrower fails to make the scheduled payments. With many contracts, this repossession can be done outside of any court proceedings.

However, once an individual files for bankruptcy many of the rules change. For one, an automatic stay is implemented. This stay prevents most actions against the debtor (individual that files for bankruptcy). Specifically, the automatic stay strictly prohibits any lawsuit or repossession against a debtor that is delinquent on car loan payments. Any repossession after a bankruptcy petition is filed constitutes a violation of the automatic stay, with the repossession void and of no effect. In that case, the lender would be immediately required to return the vehicle to the debtor.

Effect of Bankruptcy on Prepetition Repossession

Section 542 of the Bankruptcy Code requires that entities in possession of “property of the bankruptcy estate” are generally required to turn the property over to either the trustee (in Chapter 7) or the debtor (in Chapter 13). This big sticking point then for this turnover requirement is determining what is “property of the estate.”

Section 541 of the Bankruptcy Code defines property of the estate. This definition includes “all legal or equitable interests of the debtor in possession as of the commencement of the case.” Basically this definition states that whatever rights the debtor has at the commencement of the case continue in bankruptcy. As for the vehicle that has been repossessed, the court has to discover what rights a debtor had when the bankruptcy case was filed.

These rights are determine by state law (California State law). Under the California Civil Code (section 2983.2), a debtor has the right to redeem a repossessed vehicle up until the date the car is sold by the repossessing lender.

Two recent cases have come to different conclusions as to whether turnover of the vehicle is required upon the filing of the bankruptcy petition. First, in a case from the Southern District of California (In re: Fitch, 1998), the bankruptcy court held that while a repossessed car is property of the estate, the right to possess the car was transferred to the lender prior to the filing of the bankruptcy petition. The court interpreted the statutes to mean that the automatic stay freezes the positions of the debtor and creditors. Thus, the lender had the right to maintain possession. The court did state that a vehicle could be returned to a debtor upon the debtor’s giving of adequate protection. In most cases adequate protection means the establishing of proof of insurance and proof that the debtor will be able to make the regular payments on the car.

In the Northern District of California (In re: Cortez, 2010), the Bankruptcy Court interpreted the Bankruptcy Code, and specifically the section on the automatic stay, to mean that a “knowing retention of estate property violates… the automatic stay.” Because a debtor has the right to redeem until the date of a sale by the lender, the vehicle remains part of the estate, and subject to turnover. In this case, the debtor provided adequate protection to the secured creditor. However, the court seemed to say that it was not necessary for turnover.

What to do?

If your car has been repossessed, and you want to make sure you retain possession, bankruptcy may be a solution if you are not able to pay the balance before a lender’s sale. However, while the Northern District seemed to state that adequate assurance is not necessary for turnover, it will ultimately be necessary to avoid a lender’s motion for relief from the automatic stay. Be prepared to show (a) insurance, (b) regular and sufficient income, and (c) an ability to pay for the vehicle.