Payment anxiety is climbing, and the squeeze isn’t just at the dealership. Rising rates, pricier vehicles and mounting negative equity are pushing monthly payments higher, and customers are watching every dollar before they agree to another product in the finance office.
On today’s episode of F&I Today, Paul Brown, Vice President of Ascent Dealer Services, explains how F&I managers can present value to a payment-anxious customer without adding pressure to the deal.
Leading with empathy
The average new-vehicle payment topped $750 last year, according to Experian, with nearly 15% of payments exceeding $1,000, and a growing share exceeding $1,200. But financial pressure on customers extends well beyond the car payment. Brown said insurance premiums, gas, groceries and utility bills have all climbed. Therefore, F&I managers need to acknowledge that reality before presenting a menu, which starts with understanding a customer’s full financial picture, not just their credit score, Brown said.
"We're all paying for the same thing, so we all feel the same squeeze."
He recommended taking a deep dive into a customer’s financial situation from the credit bureau, including credit card balances and installment loans, along with a close look at how and when a customer gets paid. According to Brown, finance managers should also check whether the income on the credit application reflects gross or net pay.
Reframing payment anxiety
While customers often set their expectations based on their previous payment, a jump from $750 to an $860 menu package can feel much bigger than the numbers suggest. However, Brown believed that’s an opportunity for the F&I manager to show empathy and break that number down into smaller, more relatable terms, such as a weekly figure instead of a monthly one.
Additionally, Brown pointed to an F&I manager’s role as an advisor, noting that F&I managers often know things customers do not. Manufacturers typically budget for two repairs during the factory warranty period, and that repair frequency more than doubles once a vehicle passes six or seven years old. Sharing information like that gives customers a clearer picture of what they may need to budget for later in ownership, he said.
Customers will go further to avoid a loss than to secure an equivalent gain, Brown said. That’s why many car owners will put a surprise repair on a credit card rather than draw down savings. Reframing a warranty or service contract as a way to avoid that loss, rather than a net savings, can often bring that customer around, he said.
Give specific value over generic selling
Brown said F&I managers should guide customers, not push them. That means helping people think clearly instead of rushing them into a decision. One way to do that is to break the cost down, show the customer a weekly or biweekly amount instead of a big monthly total, and use whatever aligns with how they get paid.
"Generic value just kind of sounds like selling. Specific value sounds like advice."
Brown said the best F&I presentations connect the product to the customer’s actual situation. That means their vehicle, loan term, driving habits, equity and how long they plan to keep the car.
Although payment anxiety isn’t going away as vehicle costs keep climbing, Brown believes that the dealers who handle it best are the ones willing to slow down, understand what a customer can actually afford, and connect every product to real ownership needs.
