/, podcast, tips/Podcast Episode 4: Chris Paschal in Finance | Gap Insurance

Podcast Episode 4: Chris Paschal in Finance | Gap Insurance

Amy 00:00
Hi, everybody. It’s Amy and Shirley here from Think Creative.
Shirley 00:03
Amy 00:05
And we’re here today with Chris from Flagstaff Buick GMC. He’s the F&I manager here. Welcome.
Chris 00:11
Hello, everyone. Thank you.
Amy 00:13
Thanks for joining us today. So first of all, let’s start. What is an F&I manager?
Chris 00:18
So I’m basically the backstop of the dealership. Whenever a customer comes in– basically, you pick out your perfect vehicle, you and your salesman negotiate your terms, then the deal comes to me. And that’s when I just verify everything, make sure everything’s correct for the bank, make sure everything is correct on our end. Again, just the backstop. Make sure everything’s good and ready to go.
Shirley 00:41
So pretty much your job is to ensure that whoever’s financing their vehicle or paying cash that you ensure that the deal is being done. You help them get finance. You help them protect their vehicle. And you’re pretty much the backstop for making sure that everything is solidified, correct?
Chris 01:01
Correct. Absolutely. Yes.
Shirley 01:01
Okay. Nice.
Amy 01:03
Nice job. So tell us a little bit about yourself personally. And how you kind of got started in this whole industry?
Chris 01:09
So I’ve been in the car business basically since I turned 18. I worked for a company by the name of Oil Can Henry’s as a lube technician. I made a decision very early in my life that I did not want to turn wrenches. But I also made a decision that the car business was for me. And in order to move up in the car business, you have to know how everything works from service to sales to finance, all general daily stuff. So I spent, actually, three years in the service department – service advisor, service manager, parts manager – then made the move to sales. And have just worked my way up since.
Amy 01:54
That’s excellent. You said you made an early decision that you wanted to be in the car industry. What about the car industry–
Shirley 02:00
What triggered?
Amy 02:00
–appeals to you? Yeah.
Chris 02:03
So when I left Oil Can Henry’s– I was an area manager for Oil Can Henry’s. I had five stores at 18 years old. And–
Shirley 02:10
Wow, that’s very impressing.
Amy 02:12
Chris 02:13
Thank you I appreciate it. Basically what happened is Mr. Lamb called me. He owns a dealership in Prescott, which is where I’m from. And he said, “I’m opening a new– I’m opening a new store with an independent lube shop. I’d like for you to come run it for me.” So I went to work for him. And I spent the next two years running his lube shop for him. And basically, just looking at the sales guys and becoming friends with them. And learning about the other side of the business is what made me decide that that’s where I want to go, that’s where I want to be.
Shirley 02:48
Amy 02:49
How’d you do over on the sales side? Because you said that you were selling cars, correct?
Chris 02:54
Yep. I sold cars for approximately four years before I moved into management. I was never a lead-the-board guy. I was always a standard 12 to 15 cars a month. It just–
Amy 03:09
That’s impressive. Standard 12 to 15 a month, that’s good.
Chris 03:13
Yeah. It made for a good living. And basically, they came to me one day and said, “Hey, we need you to fill in in finance. Do you think you could do it?” And I said, “Yes. Of course.” I fumbled through it for about a month and then never looked back.
Amy 03:28
Did you go through financial– as far as go to school for it? Accounting? Is that something that– when you say finance, is that something that you had to go to school for?
Chris 03:40
I’ve been to a lot of different trainings. I’m a firm believer that the day you stop learning is the day it’s time to move on.
Shirley 03:50
Chris 03:50
Amy 03:51
Wow. I love that.
Chris 03:51
–I learned something new every day whether it’s from a brand new green car salesman or from a customer or something I see online. So lots and lots of training. But lots of hands-on training. I’m a very fast learner. I’m very, very good with people. I can take a customer who’s so mad that their head’s ready to pop and completely turn them around and just make them happy.
Amy 04:15
Shirley 04:15
Wow. That’s great. That’s good service.
Amy 04:16
Oh, wow. And sure it’s probably your experience over at the service department having to deal with the customer as well as on the sale side. So you probably implemented over on the finance side, correct?
Chris 04:28
Absolutely. Yes. Yeah. A lot of implementation of just again, basically, taking care of people. Nobody likes to go buy a car. It’s become a very negative type thing whereas it should be a very positive thing.
Amy 04:42
Right. Right. Just exciting.
Chris 04:43
It should be exciting for people. So I just try to implement that excitement with folks. And just try to make it as easy and seamless as possible.
Amy 04:53
So do you–
Shirley 04:53
I love that.
Amy 04:54
–probably implement that at Flagstaff Buick GMC insists with the customers here while they– after where they’re buying the vehicle and you help them make this seamlessly, correct?
Chris 05:06
Absolutely. Yes. One of the reasons that I came to work for Flagstaff Buick GMC is Trampus and Mr. Martin – the owners of this auto group – wonderful, wonderful people. They take very good care of us. And they care about how their customers are treated which is – I’m sad to say – kind of a rare thing in the car business. They really care about people, and integrity is very important at Flagstaff Buick GMC. I actually still live in Prescott and commute here every day. So I commute 200 miles a day to come to work here.
Amy 05:39
That’s incredible.
Shirley 05:40
Every day? Wow.
Chris 05:40
Every day. Yeah. And I love it. I mean I wouldn’t–
Amy 05:43
It’s worth it.
Chris 05:44
Yeah, it’s worth it. I would not want to be anywhere else. Flagstaff Buick GMC is my home. And I just love it.
Shirley 05:51
Right. And then I’m sure that the community knows who you are. You’ve been here for a very long time. So integrity, honesty is definitely the key.
Chris 06:00
Absolutely. Absolutely.
Amy 06:02
So what does a regular day look like for you? What is your day-to-day duties? What does that look like?
Chris 06:09
So again, one of the things I really love about being in finance is I have days where I will literally do absolutely nothing [laughter]. But I also have days that are–
Amy 06:21
That’s funny. That’s good. [inaudible].
Chris 06:24
But I also have days, most of my days, that are very, very intense from the time I hit the door to the time I leave. I typically get here about 7:00 in the morning, and I typically don’t leave until 8, 9 o’clock at night. Again, as the backstop, you have to make sure everything’s right. Everything has to match.
Amy 06:48
Do you do the paperwork back here? Is that what you do?
Chris 06:50
Absolutely. Yes. Yeah. I do all the paperwork.
Shirley 06:53
Chris 06:53
I’m the guy that is going to go over protecting your investment, GAP insurance, service contracts. All of those kind of things I go over and explain what they are, the benefits of them. And process all the paperwork. Sign all the legal documents, federal and state legal documents. And finalize everything. When you come into my office, you’re in here for half hour probably on average. And as a customer I would think, “Oh, well, he’s all done.” That is not the case. My job actually starts when the customer leaves my office. At that point, it’s breaking down the deal, putting together the bank paperwork, my title paperwork, the office paperwork. Breaking all of that down. Making sure everything’s right. And getting all of that to the appropriate places. And then if there’s any kind of stipulations that the bank wants, of course, I’m spending time chasing that and getting that stuff into them so that we can get funded and your loan actually goes through.
Amy 07:55
Wow. So your job is pretty important job, for sure.
Chris 07:58
I like to think so. Yeah.
Shirley 08:00
Definitely [important?].
Amy 08:01
Because if it wasn’t for you then you wouldn’t be– help the customers get their vehicle pretty much.
Chris 08:06
Amy 08:06
Chris 08:06
Amy 08:07
Get them funded and insured to– and to make sure their investment– whatever they’re investing in.
Chris 08:14
Amy 08:14
For sure.
Chris 08:15
Shirley 08:16
So what can a customer do if they’re coming in to buy a vehicle? What can they do to prepare for the whole process?
Chris 08:22
Obviously, most everyone out there has the internet at this point. Do your research. Go online, find the vehicle that you want. If it’s multiple vehicles, great, come in. We’re happy to assist and do side by side comparisons. Things like that. For me, there’s nothing better than an educated customer. Someone that kind of has an idea, this is what they want, this is where they want to go, this is what they’re willing to do. If I can give anybody any piece of advice, just do your research. Do your homework.
Shirley 08:54
That’s a rarity to hear– employees in the car industry to tell you– tend to reverse and say to do your research. That’s definitely different.
Chris 09:06
It is. And again, it comes back to honesty and integrity. We’re not here to get over on anyone. We’re all here to make a living. We’re all here to put food on the table. I have a family to feed as do 90% of my employees here. And the customers do as well. And so at the end of the day, it’s our job to make sure they get a fair deal, a good deal, and that they’re well taken care of throughout their buying and owning process. I always tell my guys– whenever I’m doing training with my salespeople, I always– one of my big things is it’s not about selling the customer a car today. It’s about selling the customer the car today but also selling their friends and their parents and their neighbors and their kids. and taking care of all of them and making sure that it’s all– throughout the whole ownership process that they are taken care of [inaudible].
Amy 09:57
Right. It’s not just a car deal. You just want to make sure you take care of their friends and family.
Chris 10:02
Absolutely. And them in the future.
Amy 10:04
And the future.
Chris 10:04
Yeah. Absolutely.
Amy 10:06
Now you did mention a GAP, you said, correct?
Chris 10:09
Right. GAP insurance.
Amy 10:09
What is that?
Chris 10:11
Okay. So GAP insurance is basically– most folks when they purchase a vehicle– if they’re not putting down a cash down payment. So they’re going to finance not only the vehicle but they’re going to finance the tax title and license, the doc fee, all of that stuff, okay? So your vehicle has what’s called an ACV, an actual cash value to the vehicle. And if you were to, say, get in an accident your insurance company is only going to cover the actual cash value of the vehicle. So let’s say, for example, you owe $20,000 on your vehicle and your vehicle gets totaled. Then your insurance company comes in and says, “Well, the actual cash value of your vehicle is 15,000. So we’re going to pay the bank 15,000 and you have to come out-of-pocket not only your deductible but the other $5,000.”
Shirley 10:58
What if you just bought the car?
Chris 11:00
Again, if you’re financing more than 70%– my rule of thumb. If you’re financing more than 70% loan to value, you need GAP insurance. And basically, what GAP insurance at that point does, they come in and they would pay that difference plus your insurance deductible. So you walk away free and clear.
Amy 11:17
So they pay the extra $5,000 plus the deductible?
Chris 11:21
Plus, the deductible. Absolutely.
Amy 11:21
And that’s with the GAP insurance?
Chris 11:23
That’s what GAP insurance does, yes. And I mean–
Amy 11:24
Oh my gosh. Is this something expensive? Is it something that’s more feasible for the consumers?
GAP Insurance
Chris 11:32
It’s very affordable for what you get. Most insurance companies do offer GAP on top of their regular insurance. However, I’m a firm believer that’s a huge conflict of interest. At the end of the day, the insurance company’s going to do whatever benefits them. But it’s very, very affordable. We could put it right into your monthly payment. Typically–
Shirley 11:52
So that you won’t feel it as much.
Chris 11:53
You don’t feel it as much, correct. Typically, you’re looking at 10 to 12 dollars a month that it would add to your monthly payment.
Shirley 12:00
Then opposed to $5,000 or $10,000.
Amy 12:02
And a lot of peace of mind.
Chris 12:04
Correct. Yeah. It’s all peace of mind. We also sell vehicle service contracts. Obviously, if you buy a new vehicle it does have a, for the most part, a three year 36,000 mile bumper to bumper warranty, which means you’re covered that three years 36,000 miles. However, what happens after that? Manufacturers are very, very smart and that’s why they put a three year 36,000 mile warranty on these cars. Because typically, you’re not going to have any issue in that amount of time or miles. It’s what happens after. With a vehicle service contract, it’s protecting your investment. If you take a five- or six-year loan on a vehicle you’re only going to be under warranty for three years. It’s worth it to protect your investment. The other side of that is, let’s just say you trade the vehicle in in two years or three years, it’s a cancelable product. So you don’t lose out on that money. That money comes back to you, so.
Shirley 13:00
What do you get with the service contract?
Chris 13:02
So depending on the service contract– so, for example, I’ll use General Motors’ protection plan. It literally mirrors their bumper to bumper warranty. And I can take that out up to 84 months and 100,000 miles. So you have 100% peace of mind for 100,000 miles on your vehicle.
Amy 13:22
So depending on the service contract or the service protection, you take your car into the service and depending on the situation of the vehicle, would it be protected? Is there a deductible?
Chris 13:38
So there’s different deductibles. You can opt for a $0 deductible. You can opt for a vanishing deductible or a disappearing deductible. If I sold you the service contract out of this store and you came back to Flagstaff Buick GMC service department, it would be a $0 deductible. So whatever was wrong, $10 repair, $10,000 repair, it costs you $0.
Amy 13:58
A $10,000 repair cost you $0?
Chris 14:01
Absolutely. Cost you $0.
Amy 14:03
And for a service contract is that something that’s expensive? Do they have to pay money upfront when they purchase a car?
Chris 14:10
It can be. I mean, again, it’s based– it’s really based off of what vehicle you purchase. Is it expensive? I guess that’s a matter of opinion and how you look at it. I’ve worked in the dealership my whole adult life and I put a service contract on every vehicle I buy. I have technicians in the back that put service contracts on every vehicle they buy. And even if they pull it into the shop and they’re the one personally working on it– parts alone these days are so expensive.
Shirley 14:42
Yeah. Very true.
Amy 14:42
A regular key fob could be 2, 3 hundred dollars.
Chris 14:46
Yeah. Absolutely. Absolutely.
Amy 14:48
So parts and service, it can be costly. And I would think that to get the protection and return on investment, I would possibly look into doing a service contract.
Chris 15:00
Absolutely. Yeah. As I said, I highly recommend it to everyone that comes in at least a service contract and GAP insurance. Unless you’re under 70% on the value. And like I said, integrity at Flagstaff Buick GMC is huge to us. I’m never going to offer someone a product that they don’t need.
Amy 15:20
Well, of course.
Chris 15:20
It won’t be beneficial.
Amy 15:21
You are the face here. The back end of it. And of course, integrity and honesty needs to be there.
Chris 15:27
Absolutely. Yeah.
Amy 15:28
So thank you very much for everything you shared with us today. So wrapping up – you kind of touched on this just now – but why should customers come to Flagstaff Buick GMC?
Chris 15:37
Customers should come to Flagstaff Buick GMC because it is our number one goal to take care of your needs. Again, we’re not here to sell you anything. We’re here to take care of what you need and make sure you have a great ownership experience. Again, we’re here for the customer.
Shirley 15:59
Nice. Thank you.
Amy 15:59
That’s fantastic. Thanks so much for your time today, Chris.
Chris 16:02
Thank you, girls. Have a good day.
Shirley 16:03
Thank you.
Amy 16:03
You too.

By |2019-02-14T23:58:45+00:00December 16th, 2018|blog, podcast, tips|0 Comments

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