As a national training and advising company for hundreds of franchise and independent auto dealers, we utilize our experience and our instincts to assist our clients in growth. But we have a responsibility to vet our teaching concepts against actual data — sometimes good ideas are hatched that aren't practical in real applications.
For years, we have refined a worksheet process we believe is the most legal, ethical, and profitable way to present transaction figures to a prospect. Our gut told us this payment-driven process was superior to a traditional cash price or difference figure presentation. So we decided to look at the data and make the case — or not.
How We Built the Study
We looked at 10,120 transactions across a cross-section of DAG dealer clients — different markets, different sizes, different business models. Some deal in high-line inventory, some do not. The sample was intentionally diverse to ensure the findings were broadly applicable, not cherry-picked.
The single variable we isolated: was the customer closed on a payment, or on a cash or difference figure?
What the Data Showed
When a customer was closed on a payment compared to a cash or difference figure, the average F&I income difference was striking:
Why the Gap Exists
The logic isn't complicated once you see it. A small change in a monthly payment — say $18/month — is far more palatable to a customer than being asked to spend an additional $1,200 out of pocket on protection programs.
- When presenting on payment, you can extend the loan term or adjust the rate to partially or fully offset the cost of protection products
- Customers perceive a payment bump as minor — the same product presented as a lump sum feels like a major, separate decision
- Payment-based presentations make the buying process simpler and more comfortable, which increases close rates across all F&I products
If you assume every customer is payment-driven, you will sell more cars and make more profit — by simply making the decision easier for the customer.
The Practical Takeaway
This isn't about manipulating customers. It's about presenting a transaction the way that makes the most financial sense for them — and happens to produce the best outcome for your dealership as well. A payment-first process makes complex decisions simpler, makes protection products more accessible, and statistically results in better outcomes across every F&I metric we track.
The data doesn't lie: dealers still presenting on a difference figure or cash price are leaving an average of $1,969.02 on the table. Per vehicle. Every single deal.
At DAG, we teach this process from the ground up — and we have the worksheet, the training, and the results to back it up. If you'd like to learn more about our sales training programs, visit our training page or reach out directly.
