That's not enough for my trade
This is one objection that rarely comes up... when the client has no trade-in! Otherwise it seems that no one is ever happy with the numbers our manager puts on their old vehicle. Ok that's just reality.
Clients will have unrealistic expectations of what their old vehicle is worth. These expectations can be the result of a negotiating position they know is inflated, an honest view obtained from inaccurate sources, or just wishful thinking. No matter what the source of their position, we must justify ours otherwise movement towards reality is difficult.
So how do we justify the trade value figure? Before we go there, two things will help start the process better:
1. Don't ever ask what the client thinks their trade is worth. Always let management come up with the first number and only after an appraisal process.
2. Make sure the appraisal form is detailed with every reconditioning item and deduction amount used to obtain the current market value. A net number all by itself is just a number.
Now when we serve the numbers and we get a trade value objection we need to respond appropriately to justify the valuation.
• Review the appraisal with your customer and discuss every re-conditioning item one by one. Get agreement on each item as a necessary repair to make the vehicle suitable for retail sale. When you have the detail, you can get agreement on each item and therefore justify the deductions that went into the valuation.
• Remind them that your manager is a professional; he/she does this every day. He/she is very aware of the market value of pre-owned vehicles and it's his/her job to be in tune with the market trends.
• The market sets the price. People just like you determine the market value of vehicles by the prices they are willing to pay for a used vehicle. Supply and demand determines the value.
• Build credibility by reviewing how it would have been impossible to have become one of the fastest growing/highest CSI/highest volume dealerships in the region if we didn't pay enough for trades.
• Ask how much over and above the Current Market Value they are asking the dealership to pay for your vehicle?
• How did they arrive at that figure? My manager is sure to ask... What should I tell him/her?
• If we still don't have agreement, suggest that the manager could get a second opinion by consulting another buyer/appraiser or a buyer in another market area.
• If the resulting difference is small then show how much the amount is per month/week/day.
Following this pattern will uncover the source of their unrealistic expectation. Once we have that, we can educate them and are more likely to bring their expectations closer to reality and you closer to a deal.
Next month we'll look at approaches to handle some of the common sources of inflated trade expectations like other vehicles they have seen advertised, estimates by other salespeople, on-line sources, or their buddy's opinion.
"Patience, persistence, and perspiration make an unbeatable combination for success."
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