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Forum: Idea Exchange
Topic: Dealing With Prospect's Negative Trade Equity
Topic Posted by: R.K. Brown (kingcigar@aol.com )Organization: BROWN'S AUTO GROUP
Date Posted: Sat Apr 24 13:25:20 EDT 1999
Topic Description: In our market area, most cars presented for trade have balances that exceed their ACV by a WIDE margin.
Does anyone have any ideas, techniques, concepts to share in overcoming impediments such as this to the sale of the next vehicle.
R.K Brown, Vice-President
Previous message
Posted by: Michael Hargrove (mhargrove@bluinc.com )
Organization:Bottom Line Underwriters, Inc.
Date posted: Sat Apr 24 14:59:05 EDT 1999
Subject: "Upside Down" Customers (part 2)
Message:
We can also ask for more initial investment (down payment) incrementally and present it in the manner that's most palatable to our customer (either down, term, or payment). Our customer says he can't come up with the additional $2000 difference. We can respond like this, "Okay Mr. Jones, if you cover only 75% of the difference, your payment simply goes up $15 a month." If he says, "75% of $2000? That's $1500. I can't do that!" We respond, "Well, fine, you know what you can or can't do. If you just cover 50% of your difference, your payment only goes up 30 bucks. Now, that's do-able, isn't it?" We continue this way (30%, 20%, 10%) until they find a point they're comfortable or until we've rolled the entire difference into the amount financed. We can also ask them what's easier, X amount down or X amount per month.
Other strategies come to mind too but I'm getting pulled away by my kids, some rare weekend Portland sun, and a bout of laziness right now. Besides, others will have just as many good ideas and probably even better, so check back here again.
Also please keep in mind and understand that NOTHING works all the time and none of this stuff will either. Sometimes negative equity is simply a condition of sale that we just aren't able to meet. Oh well! Treat this customer with respect, keep in touch with them periodically, and continue to let them know how important their business is to us and we'll stand out from all the rest of the sales people who couldn't do it for them either. When the conditions are more favorable, who do you think they'll be more willing to do business with? Not the salesrep who simply wrote them off, I bet.
Good luck and good selling!
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