Unquestionably, the Internet has changed used vehicle shopping habits and as a result, many dealers have altered their manner of presenting and pricing pre-owned cars and trucks. Today’s successful used vehicle merchant recognizes the changed market realities and adapts accordingly. In order to ensure that our vehicle makes it to the prospect’s “short list,” we must have an aggressive, competitive pricing policy – but we must also have a sales process that effectively defends margins.
Adding the presentation of the value folder (or evidence jacket, inventory dossier, etc.) as a step in the used vehicle sales process will increase our closing rates and optimize our grosses. The NCM Retail Operations team has proven that the effective implementation and execution of the value folder process has increased our clients’ used retail volume by 10% or more. The operative word here is obviously “effective.”
One place and one place only: Immediately following the demonstration drive. Once the demo has been completed, the salesperson should simply say, “Follow me, and I’ll show you the complete history on this vehicle.” Not only does this step set up the value presentation, it moves the customer from the tarmac to the closing office, where the remainder of the sales process can be closely monitored by sales management.
At the location from which the desking manager operates. The value folder presentation must occur before the deal write-up step begins.The desking manager must observe the salesperson remove and return the value folder.
Dale Pollak, president of VAuto, emphasizes that the purpose of the value folder is to “replace negotiation with documentation.” Therefore, in answering this question, recognize that more is better. The reason the customer is visiting our dealership is because our vehicle offers the most attractive combination of mileage, color, equipment and cost. The value folder content must validate and affirm these considerations, as well as many others that may trouble the prospect. Never forget that since the beginning of the used car business, the number one fear of the customer is buying someone else’s problem. The NCM Retail Operations team recommends that the value folder contain at least 10 items, including a copy of the CarFax or AutoCheck report, a description of the reconditioning process and copies of all reconditioning R.O.s, a market analysis report on the vehicle, the detail of any warranty information on the vehicle, and any other materials that will serve as evidence that your customer is in the right place to do business.