When a Customer thinks thier trade is worth too much...

I had a customer yesterday that was very hot for a 2011 Prius V.  I demoed them, test drove and wrote them up.  All was settled until we got to the value of thier trade.  He had an 2001 Crown Vic with 98000 miles on it...could not get over the objection of HIS opinion and value of his trade.  I tried everything.  Talked about the 11's being gone by the time he came back and having to pay MSRP for the 12's..etc.  Finally my manager kicked me off and sent in the "big guns" salesmen and HE couldn't do it either.  The customer LOVED me and told me he'd be back to deal with ME and not the pressure cooker guy who went in to try and close him. My customer walked convinced he'd be able to sell his V8 for alot more than it's worth...any suggestions on overcoming this common objection?

Views: 382

Comment

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

Join DealerELITE.net

Comment by Jillian Christiansen on December 7, 2011 at 12:48pm

Looking back on this day I am reminded that I have soooo much to learn.  I'm committed to the craft of sales and believe I can do this job well. 

Comment by Jillian Christiansen on November 11, 2011 at 11:49am

Wow! Yesterday was my much needed day off.  I get back and this BLOG is ON FIRE!  Such great advice.  I am thinking now about this issue from a proactive perspective!  I'm selling something so make them sell something...hmmmmm.  LOVE THAT.  It cxhanges my thinking and tactics.  Now I will put that in motion.  I know the silent walk around but have not been as expressive while I evaluate thier trade.  I'm bubbly and up thru the selling process but get to business of paperwork about the trade...NOT ANY MORE.  I'm going to use my animated cute self, facial expressions and communication skills, keep the customer in my hands and not drop the ball there anymore....Thank you all so much!

Comment by Brian J Walter on November 10, 2011 at 1:44pm

Also, remember to check you spelling before you hit "Add Comment".  Sorry folks, that's Negotiate not negociate> it's Latin, not French.

Comment by Brian J Walter on November 10, 2011 at 1:40pm

Ms. Landino, I love when a client throws the trade in after we have negotiated the new car purchase price.  Now I will use the same tactics in negociating "buying" their car that they employed while negociating the price of my car.  if they gave me a very low offer to start, I do the same when buying their car.  If they offer me profit, I will show them more money on thier trade.  With skill, there is almost always a deal made.  No one can be offended on either side.  There must be that "win-win".

 

Most people who use that tactic read it on a BLOG somewhere and are trying to use it for the first time.  We negotiate everyday, we are the professionals, we are the masters.  Always remember to serve your client and remind them that you are there to serve them.

Comment by Jason McIntosh "Jmac" on November 9, 2011 at 11:43pm

I agree Peter to an extent... It is already a given we are never going to be in complete agreement when it comes to trade values... The customer will never feel they got "enough" for their trade and the dealer always feels they paid "Too Much" I always found success not taking a confrontational stance but rather a educational approach...

  The biggest reason we call it a "Silent" devaluation... We dont insult or confront we point & educate...

If its a nice car and you dont compliment it would be insulting to me & you if it was ours... Compliment when necessary, educate and justify! Spoonful of sugar really does make the medecine fo down! It is ok to point out good things as long as if you havent skipped other steps in sales process! But Im with you on the walk around issue but you lost me on the other.

 I would even take it a step further and ask what changes or improvements have you made on your car in the last 12 mos? Tires, brakes, belts, alternator, etc or whatever? Could that not be valuable info to use later during negotiating? Esp if there is payment battle ...

  This is why it is so important building value through whole process... Never Never talk price or trade until after interview, product presentation, demo drive, and service walk... only during interview are you fact finding and determining budget by asking questions but not negotiating prematurely... Based upon answers then we select vehicle lthe "Right" car... and follow steps in exact order!

 Gross was never an issue for me because plenty of justification and value also equals higher obligation factor and I tip more when I get better service.. but then again  cheap skates eat out too and they got their in the car hopefully you sold them!

What a fun business!!! Its more fun when you REALLY dont have to sell them all because you are TOO busy selling MOST of them! Happy Selling!

 

Comment by Lizelle Landino on November 9, 2011 at 11:43pm

They all still have this state of mind LOL "If you plan to trade in your existing vehicle, don’t let the dealership know it until you have agreed on the price of the new car. Tell them you definitely don’t have a trade-in and then act like you changed your mind."

Comment by Peter A. Bond on November 9, 2011 at 11:02pm

Jason, I agree with what your saying! I propose never point out good things about a consumers trade. I will still fall back on the current market value set by the public is X! I would then share with the consumer, we have to bring the trade up to perfect condition, warrantee the vehicle and pay a sales commission and leave room for negotiation as you are doing now! People never come to you or I and say ok without an offer and consumers have access to current market values which are determined by the buying public. The current market for your vehicle is X!  On a scale of 1 to 10, how close is the current value of X to what you want to receive and why?

Comment by Jason McIntosh "Jmac" on November 9, 2011 at 10:44pm

YESSSSS Peter!! Never negotiate a trade in you havent personally walked around the car WITH your customer!! its more than just the silent devaluation... For example, how about the trade that is "Mint" "Cherry" looks like it drove off the showroom floor as a matter fact could be driven back on the showroon floor and could make the others look like they could use a dusting!  "WOW" Mr or Mrs customer you have taken extra good care of this vehicle you dont see them like that everyday that is going to get top dollar! Isnt the customer proud of their trade? You bet they are! Maybe too proud? You bet!

  Now when you come back with number are you getting a High Five? Nope still waiting for that customer! Thats too low! Well remember Mr customer remember when I told you that would get top dollar? Vehicles with normal wear and tear would not be worth near that figure! It is because of how well you maintained your vehicle we have allowed more... Fade to close!

 But never NOT walk around the car without customer present they need to sell you their OLD car just as you have to sell them their NEW car... then paint the mental picture of whats too come if they choose to sell and as others have advised already dwindle down after real costs the real diff? then ask if their time is worth hundreds of dollars? If yes it is easier to ask desk for hundreds rather than thousands! But we have all sat accross the stubborn retired older gentleman with plenty of time on their hands! Sound like you are doing fine!

  Keep up good work... and its ok if you dont sell them ALL, no one does no matter how good you are, but just sell MOST of them!! Good Luck!

Comment by Tobias Sedillos on November 9, 2011 at 8:14pm

Thank him for his time and stay in touch. Let him know that if anything changes, and when the time is right for him; you will be there to take care of him.

Comment by Charles Cannon on November 9, 2011 at 5:38pm
Another website to try is autotrader's trade in marketplace. I have used this plenty of times to close a customer that is in your situation. The difference between them and kbb is that they will actually back up their figure that they give you. They also tend to be conservative with the value so it should help you out. Have the customer fill out the info in front of you after you have done the walk around. good luck!!!

Why Join DealerELITE?

Benefits of DealerELITE membership...

  • Access to exclusive content
  • Post your own content
  • Start your own group with your own members
  • Comment on existing content
  • Access to Careers section
  • Receive notifications on your favorite content
  • Follow members and their content
  • Participation in polls and contests
  • Make suggestions to dE creators
  • Personal assistance by dE creators
  • It's FREE!

TOP 5 Contributing Members This Week

1. Dave Anderson

Agoura Hills, CA, United States

2. IC. Collins

Midland, TX, United States

3. Ed Louis

Piscataway, NJ, United States

4. Kristopher Hampton

Destin, FL, United States

5. Black Book

Lawrenceville, GA, United States

Training Solutions

Advertising Partner

dE Social

Follow dealerELITE on Twitter
Join dE on LinkedIn

© 2014   Created by DealerELITE.

Badges  |  Report an Issue  |  Terms of Service