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

JIllian, a couple of ideas: because of the age of the car, he can elect to sell it himself, buy the car and pay himself back once he sold it. Many dont like the idea, which is what you want, then you can reexplain not to take on the liability and hassle of selling the car.

If your state gives a tax credit, you could also explain he will miss out on the tax savings after his trade.

One powerful tool I have used is one Jim Kristoff taught me; go to Kbb.com, and enter the customers info of his trade, choose the trade in icon, deduct for reconditioning costs (windshield, tires, etc) then show the customer. Often you are very close to what your manager has already given. Customers like 3rd party appraisals and it always narrows the gap.

I've had times where the customer still wont budge, and I explain how real-estate appraisals work, they use comps of like houses in the area and then give come up with your averages. Obviously, he is attached to his trade bc he knows it and has been with it for many years. Sometimes you just have to chisel away.

The great news is he loves you, follow up with him maybe with some of those ideas, if they dont work, just keep checking on him--he'll buy from you.

Let me know how goes it....take care and good luck

Very excellent...tried it all.  He was in his 70's and although we offered o% financing and we suggested purchasing the car now and then paying off the difference when he sold the car...he just wouldn't budge...it's OK.  Not sure he's a CRAIG's list kinda guy but bet I'll find it on the corner here somewhere in my little town with a for sale sign on it...thanks for the advice!  Perspective and knowledge are powerful tools and I appriciate it very much!

Jillian, overcoming trade objection keep in mind four things;

1- agree with the dealer.

2- tell the customer where you got the trade value.

3- ask the customer where he got his number from.

4- reconditioning costs.

Follow-up, the customer loves you, he will educate himself on the trade value by visiting other dealers.

Very good advice Ricardo....I'll do it today...

Jillian, I would suggest that you have a large appraisal sheet designed with dealership approval and a clip board so you can EVALUATE the trade WITH the consumer(s). Do a full walk around and touch every nick, bump and dent. Touch areas on a worn tire. Open the trunk and look at the spare tire. Open the hood and touch grease and oil spots and ask the consumer to hold your clip board while you wipe your hand off with a white handkerchief. The consumer is going to look at the notes you wrote on the appraisal form. Next, get into the consumers vehicle and make sure everything works properly and writing when something is not. Interiors have worn areas so touch them and take notes. Always ask if their vehicle has any remaining extended warranty left. Always refer to the vehicle value as "Current Market Value is!" Competition probably does not cover this step. Your goal is to lower the consumers thinking point by point. I like to put approximate dollar amounts to fix or recondition things on the appraisal sheet. I do this with every trade in and much more. I also go to kbb.com when necessary and let the consumer see the MARKET VALUE listed and then deduct, item by item, each item and expense to bring their vehicle up to par. We at the dealership do not set the market value, the buying public does and the market value is X less reconditioning we just went over. I could literally go on and on discussing this topic! Best selling to you!

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.

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!

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?

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."

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!

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.