11 Oct 3 Questions to Qualify Your Buyer for GAP
Asking the right questions in F&I is a step no one can afford to skip. Showing a menu and simply explaining what they offer is not enough to get a commitment from today’s car shopper. Many products, GAP for instance, require a deeper level of consultative sales skill and questioning.
Speaking of GAP insurance, does your staff know all of the right questions to ask to make sure the buyer would benefit from this coverage? It’s a high margin product but all the more reason to make sure it’s sold properly and not something that could be a ‘chargeback casualty’ after the sale.
Let’s take a look at 3 questions every F&I manager should be asking to qualify buyers for GAP…
- How Many Miles Do You Drive Yearly? GAP is designed to make sure the buyer is protected from having to pay the difference between their outstanding loan balance and the value at the time of theft or total loss. If your buyer drives over 20k miles on average per year, they are a perfect candidate for GAP. Miles that high add up and insurers have ways to verify that at the time of loss…the value will take a hit for sure.
- How Much Will You Put Down? A high LTV on a car or truck that could take a big hit on appreciation in the first year will also be perfect for GAP. If the buyer is barely putting any down payment into the deal, their exposure if something goes wrong in the first 1-2 years is enormous. Their loan balance will still be high and it will likely be a large amount to have to bridge between that and the insurance payout.
- Do You Have the Ability to Cover A Shortfall Now? Yes, it may seem like a rather intrusive question to ask because you’re asking if they have enough money to pay off a loan differential. It’s a valid question, though, and can be asked in an air of concern for the buyer…that you want to make sure that they don’t get blindsided if the worst happens. Approach this question with empathy and professionalism and it will always land well.
For dealers that are able to sell GAP insurance, it’s always a tough sell. Like all insurance, you are walking the buyer through the worst-case scenario, telling them what they will have to pay if they DON’T have this protection. Advising, not selling, is the best strategy. Click here to learn more about how TruGAP, powered by TruWarranty, can be the perfect protection for every buyer. Our plans have up to a $50k max benefit, up to a $1k deductible reimbursement, and stretches to 150% LTV. We are here to help you make sure every buyer is safe from the worst-case scenario.