Welcome to Clear Lake Nissan

1. Welcome to Clear Lake Nissan Recruiting & Sales Training Program

2. One at a time stand up and tell us your name and why you are here. Career Change :Go East, West, South or North Climb the ladder of success a.s.a.p.! People miss 100% of the shots they don’t take! What does it take to succeed in sales: Desire, Communication, Work Ethic & Integrity Who is the most important person here today? The word of the week is great! I am here to help you succeed. One thing we do not tolerate is negativity. We are looking for positive, hardworking, career minded people. The schedule for the day:

3. Why am I here teaching this class: Started out selling cars, worked my way up the ladder and founded Advice, Inc. in 1999 to assist automobile dealers with the recruitment and training of employees. The dealerships history.

4. The Automotive Industry America’s Largest Industry 22,000 New Car Dealerships In The U.S. (46,000 Franchises) 16.8 Million Sales Last Year – $9.6 Billion In Advertising 36,000 Licensed Used Car Dealerships In The U.S. 42.6 Million Sales Last Year – $1.9 Billion In Advertising BIG 3 – General Motors / Ford / Chrysler $6.75 Billion In Advertising IMPORTS – Honda / Nissan / Toyota $4.65 Billion In Advertising $20,000,000,000 + is spent in auto advertising yearly! The average American is influenced by over 50,000 commercials per year and one third of all commercials are automotive related. The average American trades cars every 3.5 years and the average age of a vehicle on the road is 10.2 years. Every year we destroy over 14 million vehicles. One out of three people of driving age bought a vehicle last year. One out of six people in the USA has a job in the auto industry. The auto industry is Americas largest industry. Dealership employees have long term security and the ability to earn a professional income.

5. Customer Satisfaction Index 100% 80% 60% 40% 0% Pass Fail

6. Population Survey10,000 Americans ChosenAt Random(1948 – 1988 Age 25 – 65) 1 – 100 Rich 4– 100 Successful 5 – 100 Dead 36 – 100 Still Working 54 – 100 Flat Broke (Less Than $500 In Assets After Liability)

7. People Program themselves to succeed or fail! What you conceive and believe you will achieve! We have a conscious state and a subconscious state. We take in over 100,000 bits of information a second and the way we program that information will determine our success or failure. The average American hears the word “No” over 500,000 times in their lifetime. You cannot let the word “No” stop us. People fail in sales because they cannot overcome their fear of rejection. Let no go in one ear and out the other. Most people do not get into big ticket sales because of their fear of rejection or their fear of the unknown. Emotion effects peoples attitudes. People that are emotionally involved in their jobs are the ones that are successful. Many people are emotionless and just go thru the motions at work. The definition of insanity is doing the same thing over and over and expecting different results. The majority of people in the automobile industry earn about the same thing over and over, year after year. Time is your most valuable resource, if you maximize your time you will maximize your pay check. The average car salesperson waste 80% of the day. The top salespeople work 80% of the day.

8. Subliminal Psychology • Sub – Below • Lliminal – Threshold of consciousness • As you talk to people focus on their right eye for a few seconds at a time and then go back to both eyes. If you think that people are lying then stay on their right eye. This shows the customers that you are paying attention to them and they will reciprocate and pay attention to what you have to say. It is almost impossible for people to be dishonest when you focus on one eye.

9. NADA Survey • 78% if people who shop for a vehicle buy one. • 20% is the average closing ratio for 1st time shoppers. • 67% is the average closing ratio for be-backs. • 99% of people want to drive before they buy. • 85% of people decided to buy before they left home. • 72% told their salesperson they were just looking. • 85% said salesperson did not control the sale. • 88% said salesperson did a lousy job of demonstrating the vehicle. • 52% bought on the spot when they received a good demonstration and they drove the vehicle. • 38% bought four hours after leaving the first dealership. • 57% bought within three days after leaving the first dealership. • 72% bought within a week after visiting the first dealership. • 90% of the people said they were never contacted after they left the dealership. • 82% of the people that bought a vehicle cannot remember their salespersons name a year later. • 95% of the people that bought said they are going to be in the market again in the future.

10. The Advice Sales System • How to maximize sales, profits and customer satisfaction. • Appearance • Body Language • Formula for Sales Power • Goal Setting & Business Plan • Meet & Greet – Approach • Qualify – Interview • Selection • Feature & Benefit Presentation • Demonstration Drive • Trade Evaluation • Service & Parts Tour • Negotiation & Close • Leasing • Delivery • Follow – Up • Buyer Profiles • Phone – Ups • Prospecting • Time Management • How to follow the steps to a sale. • Develop rapport and dialogue and avoid tricks and manipulation. • Identify wants & needs and overcome your fear of rejection. • Put yourself in the role of an advisor and guide people through the sales process. • Understand that price is usually not the reason people do not buy. • You take control by asking questions. • Increase your mental paradigm and earn the income you desire.

11. Winners & Losers • What distinguishes the winners form the losers? • Successful salespeople come in all sizes and shapes. Men, women, young, old, etc. Some are social and others are quiet and shy. • Every successful salesperson has one common trait: a strong desire to succeed. As you increase your desire you increase your performance.

12. Formula for Sales Power • Product Knowledge + Sales Knowledge + Persuasive Ability x Desire = Sales Power • Product Knowledge = How well you know and understand your product or service. The technical information you must know in order to demonstrate what you are selling. • Sales Knowledge = Comes from experience, knowing what to say and how to say it. Sales experience does not guarantee sales knowledge. • Persuasion = Skill or finesse in which you are able to develop dialogue and rapport with people. Interaction, asking questions, seeking opinions, actively listening, making comments, and having empathy. By listening you are able to increase your ability to influence people. • Desire to succeed = By increasing your will to sell, your performance will automatically increase.

13. Goals & Business Plan • You have to know where you are going and how you are going to get there. • Work on your business plan: Set a realistic goal and write a plan to achieve your goal. • Yearly Goal • Monthly Goal • Daily Goal • How many vehicles do you need to sell to hit your goal. How many people do you need to talk to, how many phone calls do you need to make, direct mail, etc.

14. Goals & Plans Continued • Reward yourself if you hit your goal. • Soar with eagles, if you lay with dogs you will get fleas. • Believe in yourself, your product and your company. • Use your time effectively. • Plan your daily actions. • Make eye contact and ask people to buy. • Overcome your fear of rejection. • If you lack inner drive or motivation, you will fail. • Your energy, enthusiasm, hunger for knowledge, ambition, perseverance, time-consciousness, and choice of activities all reflect you desire to succeed.

15. Appearance • To come into view. • To look or seem to be. • To be presented or published. • To present yourself before a court. • In consultative, advisory selling, your appearance establishes you as a professional. People decide immediately if they want to do business with you or not. So the way to look to others is important. • Your hair, shoes, clothes, pen, and jewelry, reflect who you are. If you do not take care of yourself, others will perceive you to be careless and lacking self discipline.

16. Body Language • Your body language, posture, enthusiasm, and appearance have a great impact on your ability to communicate and persuade others. • When standing, place your arms behind your back, keep your feet apart, lean forward and stand still. • Don’t cross your arms or legs, whether you are standing or sitting, as this closes up conversation. • Don’t put your hands in your pockets, this shows you are trying to protect your money. • Smile and be enthusiastic. Make the customer feel important. • Focus on their right eye for a few seconds at a time so they know you are paying attention to them. • Be calm, matter of fact. If you are calm the customer will be calm. If you are nervous, then your customer will be nervous. • If you ask someone to buy and their arms and legs are crossed they are going to say “no”. They are in a defensive mode, so make them relax and then go for the sale.

17. Meet & Greet • Never ask “Can I help you?” • Never say “How are you doing?” • Never invade your customers space. • Never call a customer by their last name until they have given you permission. • Never say “Are you ready to buy a car today?” • Don’t try to impress your customers with your heroics. • Be calm and your customers will be calm. • Watch your customers body as it will tell you what they are thinking. • Make positive comments like, “I understand how you feel”, “Yes, I agree”, and “Many others have felt the same way.”

18. Greeting • Hi ( Small Talk) • Welcome to Clear Lake Nissan. • My Name Is ____________. • Here Is My Business Card. • Your Name ? • Do You Mind If I write That Down ? • Are You Familiar With Our Products? • Great ! Follow Me And I Will Help Save You Some Time. • When you approach your customers you want to break the ice and make them feel comfortable.

19. Interview & Qualify • Product: • Are you familiar with our products? • What Type Of Vehicle Are You Looking For (Car, Truck, Van, SUV) • What Model? • What Features Are You Looking For ? • How many miles do you drive per year? • How often do you trade vehicles? • What Are You Planning To Use The Vehicle For? • Colors - Lighter Or Darker? 1st, 2nd,& 3rd Choice

20. 2. Personal: • What Do You Do For A Living? How Long? • Where Do You Live? How Long? • (Write Down Address / Home, Work & Cell phone numbers / E-mail Address) • Are You Married Or Single ? Anyone else being to be involved in this decision? • Any Children? How Many? Ages? • What Are Your Hobbies? • How did you want to pay for you vehicle, Cash / Financing / or Lease? • What payment range are you looking for? • How much of an initial investment were you planning to put towards your new purchase? • On a scale of 1 to 10, with 10 being the highest and one being the lowest how would you rate your credit?

21. 3. Trade-In • Were you thinking of trading in a vehicle ? • What did you like or dislike about that vehicle? • Where did you buy it? • Where did you have it serviced? • Was it new or used when you purchased it? • How long have you owned your vehicle? • Is your vehicle still under the manufactures warranty? (Standard 36/36) • Does your vehicle have an extended warranty? • Is your vehicle financed, leased or paid for? • Who holds the title to your vehicle? • How much are your payments? How many payments are left? Do you know your exact payoff?

22. Ask Questions! • Open Ended Questions calls for an explanation, include the words: who, what, where, when, why and how. People will not respond with a “yes or no” when you ask an open ended question. • Reflective Questions help customers to see things from a different view. Here is an example: “After all value is measured by more than price. Don’t you agree?” • A Closed Ended Questions will get a “yes or no”, rather than an explanation. Example: “Can I help you?” Stat away from these types of questions. • Directive Questions causes your clients to channel their thoughts in a particular direction. Example: “What are the most important features that you are looking for in a car?” • Listen, prescribe and paraphrase what the customer told you.

23. Demonstration Service, Enjoyment & Benefits divided by Price = VALUE • In order to build value you must mention a feature and state the benefit. • State the benefit by saying: “What this does for you.” “What this means to you.” “Therefore”, or just state the benefit • Your customer will not perceive the vehicle is worth the price you ask, if you don’t point out the features and benefits. • Make a copy of your customers drivers license • Pull the vehicle out of stock • Pop the hood and trunk and unlock the doors. • Start by reading the window sticker to your customer, engine, transmission, suspension, interior features, exterior features, safety features, etc. • Have your customer sit inside and point out the interior features and benefits. • Take your customer to the front and show them the features and benefits under the hood. • Walk them around to the back of the vehicle and show them the features and benefits on the exterior, chassis, muffler, suspension, etc. • Show your customer the trunk, rear cargo area, or bed of a truck. Point out how the trunk, bed or rear cargo area is trimmed out. Explain how the seats fold down, etc. Show your customer where the spare tire and jack are located. • Then say “Let’s take it for a drive.” It is best that you drive off the lot and then pull over in a nice area and let them drive. It is ideal to take all right hand turns on a test drive. • Let the vehicle sell itself. Ask them if they would like to listen to the radio, any particular station or type of music that they prefer. • On the way back to the dealership ask some trial closing questions; • “This is a nice car isn’t it?’ “Right color.” “So if it fit your budget you would take this car home today, right?” • If the customer says “No” ask WHY and the customer will tell you why they cannot take the vehicle home today. Then say “Other than that is there anything else keeping you from driving this car home today?” People buy vehicles because of pride, profit, pleasure and peace of mind.

24. 2007 Chevrolet Cobals Parts And Assembly Factory Amenities Interior Exterior Engine – Germany Transmission – Mexico Point Of Assembly – Detroit, Michigan 70% US – 10% Mexico – 10% Germany ________________________________________________________ ____________________________________________ Wheel Locks - $212 Cargo Netting - $122 Splash Guards – $312 Destination - $625 Tank Of Fuel – No Charge Driver Front Passenger Front Driver Side Passenger Side Rollover $19,320.86 Engine Performance Safety Fuel Economy ______________________________________________________ ________________________________________________________ 28 City Highway 28 38 Smog Index $17,674.86

25. Trade Evaluation • If your customer wants to trade in their vehicle, just say, you are planning on trading your vehicle, right? Then please go pop your hood and trunk and start your engine and I will be right back. • Go inside and get your trade appraisal form and go around their vehicle with them so they cannot misrepresent the condition of their vehicle. • As you walk around their trade getting the information touch, look and feel the imperfections on their vehicle. This will get their perceived value of their vehicle down to reality. • After you get the information off their vehicle after you have walked around the outside and gone over the inside say, “Hop in let’s take it for a ride around the block so I can tell the appraiser how it drives.” This is the only way to get the customers perceived value down to reality. ACV– ( Actual Cash Value) – The value the vehicle will sell for wholesale at a local or regional auto auction, or what a wholesaler will pay for that vehicle.

26. Trade Evaluation continued Things that your customer will bring up: “I looked in the book and it said my car is worth $10,000.” “I saw one like mine advertised for $10,000.” “I know you can sell mine for at least $10,000.” DO NOT : • Estimate The Valve Of A Trade, Customer will ask “What do you think my car is worth.” You truly do not know what their vehicle is worth and if you give them a figure you will fail. Just say I do not know, we have an appraiser and he will look at the auction report or a book to estimate the value of your vehicle.” • They may continue to pressure you on the value of their trade, if so just say, “What do you think you car is worth?” This puts the pressure back on them and takes it off you. • Make Negative Statements About Trade – Never say “What a piece of junk, I can see why you want to trade this car in.” • Trash Vehicle Brands – Never say “This brand is pure junk, I can see why you want to trade this car in.”

27. Get The Basic Information From The Trade • VIN Number • License Plate Number • Registration Number • Inspection Expiration and Number • Mileage • Make / Model • Color

28. Questions On The Trade • Has Your Vehicle Ever Been In A Wreck, If So, How Much Did It Cost To Repair ? • Does Salvage Or Reconditioned Show Anywhere On Your Title ? • Has Your Emission Control System Ever Been Altered Or Tampered With ? • Is This Your Actual / Unknown / Over 100,000 Miles ? • Do You Plan To Remove Any Equipment From Your Trade ?

29. Service & Parts Tour • Walk Each Customer To The Parts And Service Department. • Go Over Hours Of Operation, And Assure The Customer They Will Receive The Highest Quality Parts And Labor While Having Their Vehicle Serviced At Your Dealership. • Remind Each Customer That You And The Dealership Will Be There For Them In The Future And That The Transaction Does Not End At Delivery. It Is Your Job To Ensure That They Are 100 % Completely Satisfied with Their Vehicle For As Long As They it. • Let Your Customer Know That If They Ever Have Any Trouble With The Parts or Service Departments to Contact You And You Will See That They Are Taken Care of.

30. NODoes Not =NO = Not Yet Feel Felt Found Formula How to overcome objections. I Understand How You Feel. Others Have Felt The Same Way, However When They Found _____________ . (Then explain what they found.) Help Me To Help You Lets Work Together This Is A Win – Win Situation. The word “No” is a defense mechanism that people use because they are scared. There is a phenomenon that happens when people buy a vehicle, it is called fear. Customer are going to be spending a lot of money, making a change in their life and is the right vehicle, salesperson and dealership. So do not let the word “No” stop you. Many times they just need more information or need to be reassured that they are making the right decision.

31. Negotiation And Closing 1) How Do You Wish To Title Your New Purchase ? 2) How Much Of An Initial Cash Investment Were You Thinking On Putting Towards Your Purchase Today? You Know, Banks Like To See People Put Down About 20% Plus Tax, Title, And License. Is That What You Were Thinking? 3) What Payment Range Were You Thinking Of Again? (Raise Hands In An Upward Motion) “Up To”, “No More Than”, and If You Had To, what is the most you could pay?” 4) You will need a customers name, address, home, work & cell phone numbers, e-mail address, social security number, date of birth and a signed commitment before you go into the sales managers office. • The definition of negotiation is give and take. Customers want to feel like they got a good deal, this is why people like to negotiate on big ticket items.

32. CASH IS KING Lower Monthly Payment Lower Interest Rate Finance For A Shorter Term Build Equity Faster Overcome Negative Equity Asset V.S. Liability

33. New Car Deal #1 MSRP: $26,347.68 (No Negotiation On Price) Trade: ACV - $3,200 (Customer Wants $4,900) Cash: Customer Has $2,000 Down Payment: Customer Wants To Be Near $325 Credit Score: 635 Average Credit

34. MSRP Trade $26,347.68 + TTL Cash Down Payment

35. MSRP Trade $2,150 $26,347.68 + TTL Cash Down Payment

36. MSRP Trade $26,347.68 + TTL $2,150 Cash Down Payment $5,000

37. MSRP Trade $26,347.68 + TTL $2,150 Cash Down Payment $5,000 $782.67 X 36 @ 2.9% Financing Terms 12/24/36/48/60/72

38. Presentation of the Numbers • For our car, with your trade, and we are paying your vehicle off, including tax, title and license, with this much cash down, your payments will be. (Be Confident During Numbers Presentation, Remember Your Body Language And Eye Contact) • If the customer objects to the figures, say “If you won’t do this, what will you do. Help me to help you. Let’s work together.”

39. MSRP Trade $2,150 $4,500 $26,347.68 + TTL Cash Down Payment $5,000 $782.67 X 36 $2,500 $350

40. MSRP Trade $2,150 $4,500 $2,850 $26,347.68 + TTL Cash Down Payment $782.67 X 36 $5,000 $350 $2,500 $534.21 X 60 @ 5.9%

41. MSRP Trade $2,150 $4,500 $2,850 $3,000 $26,347.68 + TTL Cash Down Payment $782.67 X 36 $5,000 $350 $2,500 $534.21 X 60 $400

42. MSRP Trade $2,150 $4,500 $2,850 $3,000 $26,347.68 + TTL Cash Down Payment $782.67 X 36 $5,000 $350 $534.21 X 60 $400 $426.47 X 72 @ 12.9% $2,500

43. MSRP Trade $26,347.68 + TTL Tax – 6.25% Title - $100 Lic. - $58 $28,162.29 - Total $3,000 – ACV $3,200 + $200 Gross Profit Cash Down Payment $426.47 X 72 To Borrow $22,662.29 For 6 Years At 12.9% (Average to High Interest Rate) $426.47 Monthly Payment Required $2,500 With Trade Total Of $5,500 Down

44. Leasing Questions Customers Have • I don’t understand leasing, how does it work? Main reason people lease is shorter term and lower payment. • At the end of the lease you don’t have anything of value. This is because you make a much lower payment. Most people don’t own the vehicle they are driving now, as they are still making payments. • How does the mileage work? The more miles you drive the higher the payment will be. • Is there a penalty if you exceed the mileage? Yes, normally 25 to 25 cents depending on the lease company. • I don’t know how many miles I drive per year. Look at the car they are driving now and it will tell you. ADVANTAGES • Closed Ended Contract – Leasing Company Guarantees the Residual Value Of The Vehicle No Matter What Happens To The Market Value. MSRP: $30,000 + TTL Lease Of 3 Years At 15,000 Miles Per Year (45,000 Total) Residual Value = 50% Vehicle Price Is Now $15,000 + TTL Stretched Over 36 Months. • You Can Save A Customer 20% To 35% On Monthly Payments In A Lease VS. Purchase. • Your protected from depreciation due to a hail storm, wreck, etc., as long as you get your vehicle fixed. • Your protected from having negative equity in your vehicle as the end of the term. • Leasing is the best way to tie up as little money as possible in a depreciating asset. • The average payment on a new vehicle last year was $483 per month for 62 months. • The average American drives 15,000 miles per year and trades every 42 months. • Protected from high maintenance cost as the vehicle is under warranty, normally 36/36. *The shorter the payment term the more customers return to the dealership to buy or lease again in the future. OPTIONS AT END OF TERM • Turn In • Trade In • Buy

45. Lease Penalties • Penalty For Exceeding The Contracted Mileage Will Result In A Penalty For Breaking The Lease Contract And A Penalty Of $.15 to $.35 Per Mile. • Customer is penalized if vehicle is returned with abnormal wear and tear. • Dents larger than 1.5” in diameter must be repaired. Windshield cracks, stars, etc., must not be larger than a dime. Tires must have at least 1/8” of tread at lowest point. Interior must be clean and in good working order. Regular maintenance must be performed, such as oil changes, windshield wipers, etc. Scratches that are more than 3” in length and you can catch your fingernail on it, needs to be repaired. Paint that is stained or damaged must be repaired. • The lease company will estimate the excess damage and the customer will be sent a bill to cover the repair costs. There is no penalty for excess wear and tear or high mileage if the customer trades the vehicle in. • There is only a penalty if the customer turns the car into the lease company.

46. You Have A Deal !!! Take Information To Your Sales Manager. The Manger Will Check Information For Accuracy And Give You A Deal Folder And A Credit Application To Take Back To The Customer. Fill Out A Credit Application For Your Customer Offer Your Customer A Refreshment Then Take The Folder To Your Assigned F&I Officer For Loan Processing. Do Not Bring Customer With You Until F&I Setup Has Been Completed.

47. Finance And Insurance • Auto Buy – Good Credit And/Or Large Amount Of Cash Down Will Encourage Banks To Pick Up The Loan And Reward You With A Good Interest Rate. Banks Will Often Compete Over Loans With Good Credit Scores And/Or Large Sums Of Cash Down By Offering Lower And More Competitive Interest Rates. • Auto Deny – Bad Credit / Too Much Negative Equity / Instability At Employment Or Residency / Insufficient Amount Of Cash Down. Negative Income To Debt Ratio. • Conditional Buy – Bank Qualifies the Loan: Higher Interest Rate, More Cash Down, Less Vehicle or Lower Amount to Finance/ Shorter Term/ Proof Of Income / Proof Of Residency / Income Tax Returns / Phone Bills / Utility Bills / Names, Addresses, & Phone Numbers Of 7 Non-Family References / Paycheck Stubs ect.

48. Finance & Insurance = Gross Profit On The Back End Extended Service Policies GAP Insurance Disability Insurance Death Insurance Paint & Fabric Sealant Roadside Assistance Policys EPP

49. Once F&I Is Ready For Your Customer, They Will Call You To Bring In Your Customer. While Your Customer Is In F&I You Must Do The Following: • Retrieve All Sets Of Keys To Customers Vehicle • Get Owners Manual – Place Your & Service Advisors Business Card In Owners Manual. • If It Is A New Car – Fill Tank With Gas • Take Car To Make – Ready For PDI • Attach Temporary License Plate To Vehicle Properly • Prepare For Vehicle Delivery And CSI Presentation Once The Car Is Ready Stand By The F&I Office And Wait For Your Customer To Come Out. “Congratulations, Lets Go See Your New Vehicle”

50. Delivery Perform Another Demonstration On the Vehicle. This Time You will Be Covering The Following: • Fuse Box Locations • Light & Seat Functions • Spare Tire / Jack / Tire Iron • Ask To Assist Setting Radio Stations / Tuning XM Radio / Programming DVD Player / Programming Navigation System • Help Custom Transport Any Personal Items Left In Their Trade-In To The New Car • Remind Customer That In The Unlikely Event Something Goes Wrong With The Vehicle, The Service Advisor Is The One To Take It To.