2005 eMarketing, RTCM

and RCL (F.I.L.M.)

DEALER TRAINING MEETING
PRESENTED BY:

JOE MAZUR, LAURIE ASH & DOUG MITCHELL

of Reynolds Consulting Services

TODAYS AGENDA

Explore Profit Opportunities

through:
Red Carpet Lease Penetration
Red Carpet Lease Renewal
Integrating RCL into the Sales
Process

RCL PENETRATION

Whats happening now

2005 Ford
Five Hundred
Lease

Finance

24-Mo. 36-Mo. 48-Mo.

$0 Down
10% Down
20% Down

382
280
178

359
288
216

336
280
224

60-Mo.
433
390
$15,588
347

15,000 miles. 94% MSRP, $595 fee included. Tax, license, 1 st payment & security deposit addl.

RCL PENETRATION

What if your customer desires to

use outside financing and take
the Stand-Alone Customer Cash?
2005 Ford Five Hundred
60-month bank financing with 3.5% = $411
72-month bank financing with 4.9% = $363

$0 Down Payment
24-mo. RCL 36-mo. RCL
$382

$359

RCL PENETRATION

Whats happening now

2005
Freestyle SEL
Lease

Finance

24-Mo. 36-Mo. 48-Mo.

$0 Down
10% Down
20% Down

382
280
178

359
288
216

336
280
224

60-Mo.
433
390
$15,588
347

15,000 miles. 94% MSRP, $595 fee included. Tax, license, 1 st payment & security deposit addl.

RCL PENETRATION

What if your customer desires to

use outside financing and take
the Stand-Alone Customer Cash?
2005 Freestyle SEL
60-month bank financing with 3.5% = $411
72-month bank financing with 4.9% = $363

$0 Down Payment
24-mo. RCL 36-mo. RCL
$382

$359

RCL PENETRATION

Whats happening now

2005 F150 XLT

Super Cab 4x4
Lease

Finance

24-Mo. 36-Mo. 48-Mo.

$0 Down
10% Down
20% Down

467
340
213

420
332
243

395
326
256

60-Mo.
508
457
$18,288
406

15,000 miles. 94% MSRP, $595 fee included. Tax, license, 1 st payment & security deposit addl.

RCL PENETRATION

What if your customer desires to

use outside financing and take
the Stand-Alone Customer Cash?
2005 F-150 XLT Super Cab 4x4
60-month bank financing with 3.5% = $483
72-month bank financing with 4.9% = $426

$0 Down Payment
24-mo. RCL 36-mo. RCL
$467

$420

RCL PENETRATION

Three ways to increase profit:

Per unit profit
Increase Closing Ratio
Increase Floor Traffic

TERM &
POSITION

RCL PENETRATION

Whats in it for our Customers?

More Car
More Often
A customer who is
Less Money

familiar with the RCL

product looks
forward to rotation
rather than
fearing termination.

RCL PENETRATION

Whats in it for our Dealers?

Less Marketing Costs
Increase CSI
Less Staff Turnover
Used Car Factory (Accelerate)
-

One Owner
Late Model
Low Mileage
Factory Backed Vehicles

A vehicle whos History is no Mystery.

RCL PENETRATION

Whats in it for Ford Motor

Company?
Lease to Lease Customer Loyalty
2003 was 39%
2004 was 46%

RCL PENETRATION

Ford Division Overall Sales

Satisfaction by Financing Option

What does it all add up to?

y lC n a
LRCLaTrade
e Tl R d e s
r
Cycle
Renewals
C R ec e w

RCL RENEWAL

Power of Compounding Through Trade

Cycles
10-year View: 36 month lease

Assumptions used:

First renewal cycle

50% renewal success
Second renewal cycle 65% renewal success
Third and subsequent 65% renewal success

RCL RENEWAL

10-year View: Year #1 Impact

36 month lease

50% Renewals
65% Renewals
65% Renewals

RCL RENEWAL

Power of Compounding Through Trade

Cycles
10-year View: 36 month lease

Assumptions used:

First renewal cycle

50% renewal success
Second renewal cycle 65% renewal success
Third and subsequent 65% renewal success

RCL RENEWAL

Power of Compounding Through Trade

Cycles

10-year View: Composite 24 and 36 month lease

RCL RENEWAL

Pre-Plan your GAIM Plan

RCL RENEWAL

-INSERT GENERIC
PERFORMANCE REPORT-

RCL RENEWAL

- INSERT GENERIC
TERM TRACKER -

RCL RENEWAL

Lets Identify Trends in the Market

Place
Dealership to Dealership Loyalty is
Down
Competition and Customer options are
Up
Lease to Lease Penetration is on the
rise
from 39% in 2003
to 46% in 2004

RCL RENEWAL

Lost Income
Report
-INSERT GRAPHIC-

RCL RENEWAL

The Payoff - A Competitive Advantage

RCL is about The Trade Cycle, and it is worth the
time to present the Customer the options
Percent Loyal to Corporation
Buyers
Lessees

2002
56
74

2003
54
80

2004
53
77

Percent Loyal to Dealer

Buyers
Lessees

2002
34
55

2003
31
67

2004
31
61

RCL SALES PROCESS

To grow RCL, it must be presented

in the sales process
Training subsidized through

Ford Motor Company

Using proven tools that work
Incentives from Ford Motor Company

All designed to help you Build a Bank

of Enthusiastic Lifetime Loyal Customers.

RCL SALES PROCESS

Proven Process
for Success

RCL SALES PROCESS

Introduce the Concept

BEST PRACTICES
Customized Greeting
Interview & Selection
Guest Survey

RCL SALES PROCESS

Find the Right

Vehicle & the Right
Cycle
BEST PRACTICES
Third Party Presentation
100% of the Time
Coached from the Desk

RCL SALES PROCESS

Present the Numbers

BEST PRACTICES
Give the Customer
what they want
Dual Write-Back Sheet
Tailor Your Down
Payment

RCL SALES PROCESS

Deliver the Vehicle

BEST PRACTICES
Create a duplicate file for Renewal
Use your CRM Tool to
track Customer activity
Or use LSI Software

RCL SALES PROCESS

Follow-Up
BEST PRACTICES
Use your CRM Tool or
LSI Software
Create short-term
follow-up
Schedule long-term
follow-up
Download Term Tracker
Maintain your duplicate
files

RCL SALES PROCESS

Renew the Customer

BEST PRACTICES
Pre-plan your GAIM Plan
Use your CRM Tool or
LSI Software
Schedule a Renewal
Appointment
Present the Option
Analysis

RCL SALES PROCESS

RCL Maintenance is the FUEL that keeps the engine humming.

Questions
& Answers?

Thank You!
LETS TAKE 10