Loading

The Importance of the Used Vehicle Value Folder

file000218113016

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.”

Where should this step be integrated into the sales process?

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.

Where should the value folders be stored and maintained?

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.

What should be included in each 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.

Views: 59

Comment

You need to be a member of DealerELITE.net to add comments!

Join DealerELITE.net

Comment by steven chessin on June 14, 2014 at 3:53pm

 Garry there is no disputing that building value with documentation is a powerful closing tool. My only comment is that it should be an online fronting tool or lead generation is compromised. 

http://covideo.com/p.php?s=3dd345fb11

Blog Posts

Is Your Campaign Compatible?

Posted by Paul Potratz on June 24, 2016 at 1:41pm 0 Comments

Are you testing your emails before you send them?

More than 80% of the population use smartphone and other mobile devices. Over 60% of people open their…

Continue

Are You a Game Changer?

Posted by Dave Anderson on June 24, 2016 at 11:23am 0 Comments

There are normally three types of team members on an organization’s payroll: caretakers, playmakers, and game changers. The behaviors associated with each category go beyond skills or talent; they are primarily mindset issues that determine how…

Continue

Dangerous Recalls May be Leaving your Service Lane Unrepaired

Posted by Chris Miller on June 24, 2016 at 10:35am 0 Comments

In my last few blogs, I’ve discussed how to handle recall customers…

Continue

The Writing Is On the (Facebook) Wall but May Not Be for Long

Posted by Gina Reuscher on June 24, 2016 at 10:17am 0 Comments

Words, both written and spoken, have been the primary form of…

Continue

How Can Auto Auctions Improve Dealer Confidence Online?

Posted by Kelly Bianchi on June 24, 2016 at 8:42am 1 Comment

The Online Perception

Perhaps Buzz is a bit naive... or... maybe Woody has had a bad experience in the past. (For those of you who don't have have kids, I am referencing the image above.) The…

Continue

de sponsor

newsletters

dE Sponsor

© 2016   Created by DealerELITE.   Powered by

Badges  |  Report an Issue  |  Terms of Service