Peeling Back the Layers to More Profit

In the ever-evolving world of automotive, marine, powersport, recreational vehicle, and commercial truck and bus finance and insurance (F&I), successfully selling F&I products requires more than simply listing benefits and features. Today’s customers are savvier than ever, often entering the dealership with a firm stance on what they do or do not want. This is where the “Onion Theory” comes into play. In F&I, this technique guides professionals to take a layered approach to customer conversations, gradually uncovering the hidden concerns, needs, and motivations that ultimately drive purchasing decisions. 

By embracing the Onion Theory, F&I managers and sales staff can move beyond the surface to reveal the true value their products bring to each customer. Here’s how this approach helps deepen customer engagement, leading to a more effective and profitable sales process. 

Step 1: Addressing Surface Objections 

At the first layer, customers often express surface-level objections. These may include price hesitations, reluctance to add “extras,” or concerns about perceived unnecessary coverage. However, these initial reactions frequently mask underlying reasons for their resistance. Instead of pushing back or attempting to close immediately, the Onion Theory encourages F&I staff to approach these surface objections with curiosity and a willingness to listen. 

For instance, if a customer balks at the cost of an extended warranty, a simple question—such as, “What are your main concerns about added coverage?”—can gently peel back the first layer. This question invites the customer to elaborate, moving the conversation past objections and positioning the F&I professional as a guide rather than just a salesperson. 

Step 2: Uncovering Specific Needs and Concerns 

Once past the initial objections, the conversation can move to the next layer, where specific needs and concerns start to emerge. Here, customers may reveal more practical motivations for their decisions, such as concerns about vehicle longevity, high maintenance costs, or the need for roadside assistance. 

Through a thoughtful, question-based approach, F&I professionals can uncover these deeper priorities and demonstrate how specific products align with the customer’s goals. For example, understanding that a customer intends to keep their vehicle for an extended period allows the F&I professional to highlight a vehicle service contract or GAP insurance that provides long-term peace of mind. By focusing on these tailored solutions, the salesperson creates relevance and value for the customer, making the benefits of F&I products clearer and more appealing. 

Step 3: Revealing Core Motivations 

At the core of the Onion Theory lies the customer’s emotional motivations, which are often the real drivers behind purchasing decisions. These motivations may include security, pride in ownership, peace of mind, or even a desire to protect loved ones. Discovering these emotional drivers can transform the conversation, allowing F&I professionals to connect with the customer on a deeper level. 

For example, if a customer expresses a desire to protect their family, the F&I staff might focus on products like extended warranties, which ensure that their vehicle remains in top condition without unexpected repair expenses. When customers see F&I products as solutions that align with their core values, they are far more likely to buy in—because the products become a means to fulfill personal and emotional needs. 

Why the Onion Theory Works in F&I Sales 

The Onion Theory not only helps to increase F&I product sales but also builds long-term customer relationships and loyalty. Customers who feel understood and valued are more likely to trust the dealership and return for future purchases or services. This approach is particularly valuable in F&I, where successful sales often depend on trust and customer confidence in the product’s ability to provide real value. 

Each layer of the Onion Theory allows the F&I professional to better understand the customer’s unique circumstances and motivations, resulting in more targeted, personalized presentations. Rather than offering generic pitches, this method empowers F&I teams to present products as customized solutions, directly aligned with each customer’s priorities. 

Elevate Your F&I Department’s Performance 

Peeling back the layers to reveal a customer’s true motivations and needs is a powerful way to increase F&I profitability. The Onion Theory enhances every aspect of the sales process, from building rapport to closing deals, and is a proven way to increase revenue while fostering loyalty. 

Elevate your F&I department with professional in-store and online coaching from Ascent Dealer Services. Contact us to schedule your first session today!