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?

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Comment by Peter A. Bond on November 9, 2011 at 4:31pm

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!

Comment by Jillian Christiansen on November 9, 2011 at 11:49am

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

Comment by Ricardo Rondinelli on November 9, 2011 at 9:58am

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.

Comment by Jillian Christiansen on November 8, 2011 at 8:53pm

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!

Comment by Noel Walsh on November 8, 2011 at 8:43pm
Overcoming the trade value is almost always an issue. At that age of a vehicle if you are too far away on the trade then you should tell them to sell it themselves on graigs list or in the paper, but reiterate the value on the car they want to buy right now. Tell them "folks we're working on your trade for you right now, but if you really need that price for your trade in just sell it yourself on graigs list or in the paper. But let's not let that stop you from getting what you want today."
Comment by Marsh Buice on November 8, 2011 at 8:40pm

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

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