Trade Valuation and Closing Techniques

Speaker 1 0:00

All I want is to know how much you're giving me for my trade . How many of you heard that right On today's episode , we're going to help you overcome that and close a profitable sale . Stay tuned Hi . I'm David Lowe , the Automotive Sales Coach , and welcome to Prepare to Win . This is a podcast that's really focused on helping you live and work with excellence , right To create that joy , peace and satisfaction that can only come from the pursuit of your best self right .

Speaker 1 0:41

Grace is in dealership today , so I'm coming to you alone . She says hello , this is a big topic , by the way , grace , I coached her on this when she was selling and she had some great successes handling this exact problem we're facing today , which is what all I want is to know what my trade's worth , right ? So I want to take you through the thinking behind this , because I'm going to tell you something . There's a lot of people out there who tell you this is what you do when this happens , and they want check . I just want to know the one thing I can do . There's no such thing . You need a set of thinking , you need to see the situation correctly and , yes , you need to have a professional plan , but it's not about saying one thing or about doing one thing . It's about becoming a master sales professional , right ? That acts and reacts according to the preparation and training . And when somebody brings up something like this , we're not worried about it . As a matter of fact , we expect it and we're prepared . So I just want you to think about it for a second .

Speaker 1 1:49

When someone comes in and all they care about is their trade , I always think , hey , what's going on here ? You know what it's really about the whole financial package and what good is a trade number if the price is wrong or the payments are wrong and we don't even have a car they want ? Right ? That's what goes through my mind , right , it's not what I discuss with the buyer right now , but I just . You know why . What is happening to make these people so adamant and so right ? I this ? Well , I'm gonna tell you what's happened . They've been online . All your buyers have . They've been the 12 to 14 website . They've ran their trade and they're not happy with what they're seeing , right ? Either they think their car's worth more duh , everybody does or they owe more . A lot , do , right . And so somebody owes this much and goes online and finds it's worth . This much is probably going to be a little pissed off , right , they're a little disappointed and that may come out and feel like an attack on you that they're really coming . I just want this and it almost feels personal . Don't let it be right . Here's what happens .

Speaker 1 3:08

We don't control the market . We know that most people finance their cars too long . We give them shorter terms as an option and they choose the long term . Most people don't put enough down and so , just by math , simple interest , when you calculate it , it's so hard not to be upside down when you buy a car if you want to trade it in a year or two or three years , right . It takes time to build equity , a lot of time , typically four years , right . So we know that this is not our fault , so don't take it personally . Right , and we know they're upset with where they are , not with us .

Speaker 1 3:46

So the first thing is I have to have my thinking right . This is critical because I think most salespeople get on the defense , and here's what salesmen have been doing for decades . Who cares what your trade's worth if I don't have a car you want to buy ? Right , you know . Let's not put the cart before the horse . Now , that is a true statement . And in today's internet driven marketplace , we just have to be better than that . You know what I mean . We have to be better than that . That doesn't feel good . It's not the best way to handle it . I'm going to talk about that with you . The best way to handle it . So buyer comes in . How can I help you today ? I just want to know what my trade's worth . I don't want to do anything until I do that .

Speaker 1 4:26

Now let me relate . I've been through this for so many years three decades . I'm going to relate a couple stories , actually . Here's one . Here's a top one . I've got many stories about this . Here's a top one , though .

Speaker 1 4:39

When I had budget , our used car center , we had a used car dealer sale at the local baseball diamond . Right , it's kind of cool . We're in the parking lot . I don't know . It was 10 or 12 of us dealers in a U shape there , and so everybody brought their you know the campers or the trailers for an office and then had all their cars there . You know what an offsite car sale looks like . It was kind of successful . But it's funny You're sitting there and I was almost in the last spot this year and it's funny .

Speaker 1 5:09

I watched somebody take it . It was a Bronco , I believe , if you don't know what that is , right there there's the new Broncos . This was one of the big old Broncos , a nice one , but I watched this person go from one dealership to the next and get an appraisal . You know what I mean . I just watched her . She went in , they went out to her car Some of them drove it , some of them didn't . Then she moved to the next dealer , right . She eventually got to me .

Speaker 1 5:36

So I actually went out to talk to her because I was so curious about it , right , and she was like I just want a number on my trade , right , and so she was very adamant on a number for a trade . Now what did I witness ? She went from dealership to dealership and she hasn't stopped and driven a car or bought a car . What does that tell you ? She's got unrealistic expectations . Let me ask you this how many of those dealerships use the same market results to determine the value , right ? I always say , listen , we don't value your car , we appraise the condition . The market values your car , and so every dealer she went to pulled up the same data and , give or take gave her around the same amount and she was dissatisfied with all of them .

Speaker 1 6:29

Now she was coming to me and she was going to ask me to do what . Piss me off , tell me what you'll give me for my trade . That's what would have happened , right ? So I stopped her and said listen , I know I couldn't help , but I watched her go from dealership to dealership . I know you've got numbers on your . I watched her go from dealership to dealership . I know you've got numbers on your trade . How do you feel about those numbers ? So far she goes . All you guys are cheaters and liars . My cars were so much more than that . Right , that was her attitude .

Speaker 1 6:54

And she went from place to place setting that stage and most salesmen , unprepared , reacted . You know what I told her . I said you know what I get . That , and I know how frustrating it is . A lot of times . I know I'm that way . I always want more for my car than the market eventually says is worth . Can I tell you the truth ? Every one of those dealers is going to use market data to determine what your car is worth . It's really the market determines it . It's not my emotion or your emotion or your feelings or my feelings . It's what people are buying and selling them , for that determines , and they all use the same market , so they're all going to come up with the same number . And guess what ? So why the market ? Is the market .

Speaker 1 7:34

Now here's what I can do for you . I can't change the market , but I do . I can't stretch the market I'm really good at that . But what I'm an expert at is taking that market , stretching it and helping you put it into a whole financial package that works for it . In other words , your trade is only as good as your entire financial package , your entire deal , the car you're getting , the price of the car you're getting and the payment details right .

Speaker 1 8:01

And so , if you would allow me , I'd love to look at your car . Of course , you already know the market . I want to look at the condition and see how much I can stretch the market . But , most importantly , I want to help you find a car that works for you . And if we find that car , I want to put a financial package that works . I may not be able to make you happy on the trade , but I guarantee you I can make you happy on the whole financial package . Would you allow me to do that ? She goes , I guess .

Speaker 1 8:26

So Okay , brought over one of the salesmen and said let's go find a car . While you're doing that , I'm going to do a market valuation . If you find the car you want , I guarantee you I will work out the whole financial package and you'll be happy . Go ahead and do that , I'll take care of this . Anyway , that gives you the thinking behind this , isn't it true ? Everything I just said is true .

Speaker 1 8:48

And , by the way , I've handled so many customers exactly like that . I had one at the last store . I was at VW store . He's like why can't you guys just give me a number on my car ? The last three dealerships did . I said we can and we will , that's easy .

Speaker 1 9:05

And how many of those cars did you buy ? She goes well , none of them . Because the trades weren't right . Exactly , you see the same scenario setting up Once again . I used that same pathway and we put her into a car and she was happy . Okay . So listen , when somebody comes in and they hit you with this right away . Listen , when somebody comes in and they hit you with this right away , don't fight them , be excited . Do we need trade-ins ? Rock and roll , we need trade-ins . Most dealerships I go to are like we don't get enough trade-ins .

Speaker 1 9:33

Okay , so she's got a car she wants . She doesn't want a buy number on , she wants to know what you're going to give her for trade . She's buying a car . What has she just said ? She just said this car no longer fits my lifestyle and I want out of it . And I want out of it today and I'd like to find a car that fits my lifestyle . And right now I'm only focused on one aspect of the deal , that's the trade , because the market or other dealers have pissed me off , and so that's what I want to settle first .

Speaker 1 10:05

You hear what I'm saying . Here's the good news you have a buyer . All we have to do is help her think better so she can act better . Isn't that true ? For her to think better , you have to think better . I'm going to just tell you something You're not going to win this battle of the trade without building value in you and what you do . But I'll tell you what . We train our dealership playbook behind me . If you're a subscriber , you know that we have on here exactly how to handle it . In this situation where a buyer comes in and that's the first thing you want , right we have the sound appraisal tool that is typically step right . We welcome people , we understand goals . Then we go look at their trade In this case , I just want my trade number , no-transcript and they tell you oh , that's exactly the kind of car we're looking for .

Speaker 1 10:59

Is it here ? Well , let's go ahead and get it looked at right now . Come on , you and I let's walk out together . By the way , I'm David and you are fantastic . Have you ever bought a car from us ? Well , thank you for coming . I sure appreciate it . And how'd you ? On the way to the car , can I start my welcome step ? You bet I can . And when I'm walking around the car , their car , can I not build relationship with them ? Boy , this is a nice car . Boy , you kept this car in nice condition , right , have you enjoyed the car ? We compliment the trade , right , we praise the trade , not appraise the trade . We praise it , which builds them up . We're not here to nickel and dime you and we walk around the car with a silent appraisal .

Speaker 1 11:36

Right now is not the time to say all right , lady , let me tell you why you're not going to get what you want . Let me point out all the things that I have to deduct , deduct , deduct , deduct . Right now is the time to build relationship . Walk around the car , ask good questions , actively listen , touch and note the areas that need reconditioning , but let your buyer devalue it themselves . Right now you're trying to build relationship and trust in you so that they will let you help them find the right car .

Speaker 1 12:10

Right now is not a time to go ahead and talk about what has to happen to the car to get it ready for sale . I could say , hey , what'd you love about this car ? What things would you change about this car ? What reconditioning or service have you had recently done to your car ? What repairs , maintenance and so forth ? If you kept the car , what maintenance repair would be coming up in the next year ? Have a great . Have you ever had an accident ? Have a comfortable conversation about the car . That builds trust and relationship in you because ultimately that will build trust and relationship in the number . Does that make sense Now ? I'm going to tell you right now that you're going to face this on the phone .

Speaker 1 12:52

This is the funniest one . Somebody calls from an hour and a half away and wants a number on their trade right and say , okay , let me go get a number . Well , if we don't give them a number , they won't buy . Listen , I'm not trying to get out and giving them a number . What I want to do is think about why would somebody call you from an hour and a half away about a trade number ? What has occurred before they call ? Get inside the buyer's head , understand and have some empathy for what they're going through . And I guarantee you , if you apply our process with rigid , flexibility rigid , I do all the steps Flexibility I may reorder the steps in order to accommodate this buyer . If you do that , I guarantee you will build value in you and value in you turns to relationship and trust and they will begin to accept the things they can't change . They can't change the market on their car . We need them to accept that by focusing on what that whole financial

Sales Skills Training for Success

Speaker 1 13:54

package .

Speaker 1 13:54

Okay , we're going through these episodes . We're going through some of the toughest situations that you encounter and while there's no like , just say this one sentence and you're gold . There's nothing like that . There's nothing like that . But what there is is your salesmanship and your skill level , and that all begins in your mind . You've got to get your thinking right and you've got to prepare to play with action . Do you know how to do a great silent appraisal ? Do you know how to ask those good understand goal questions and good welcome steps so that , wholesale one , you can go ahead and overcome their fear and connect and lead and begin to help them find the car that they want . Does that make sense ?

Speaker 1 14:41

Okay , so today's episode what I want to talk to you about is how do you get this out of the way , and that's the way you do it . Now let me leave you with this . Most of the time , you bring them in and you're going to finish logging them into computer . I'm going to turn this into our used car appraiser or manager , whatever language your dealership uses . And since we've got some time , why don't we go ahead and pick out the car so I can make you offer , not just on your trade , but on the whole financial package by the time you suggest that you have the relationship and trust you need for them to say that makes sense . All right , I'm hoping that this has been a benefit to you . I know that most people haven't been prepared . Most salespeople haven't been prepared for these kind of things , and I'm going to tell you I've been using this for over three decades and this thinking and this process will work for you too .

Speaker 1 15:33

Thank you for watching , thank you for listening . However , you're doing that and if you're not a subscriber , if you're not a partner , hit us up . We'll show you how simple and affordable it is to become an ongoing partner . I have 24-7 access to our playbook If you are a partner . Thank you so much , and remember you've got the bike . Now ride it right . You have the tool . Make sure that you commit yourself to daily becoming better today than you were yesterday by watching one short five-minute video and thinking it through and , if needed , practice and develop that skill set Good selling .