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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: Todd A. Fee (toddfee@aol.com )
Organization:Mallon Ford
Date posted: Tue Jul 27 1:53:25 EDT 1999
Subject: How to overcome trade (negative equity) objections
Message:
Okay, here's an idea that works 99.9% of the time for me; of course, there's no sure-fire close for every objection, but i LOVE this one, so here goes! after you get the first pencil, and let's say that the desk is offering $4,000 for the trade, but the customers' payoff is $5,500....The customer states "Well, youre going to have to give me more for my trade! I know It's worth at least $6,000!" (First, let's all agree that the reason why the customer is saying that is because he or she wants the trade paid off, with maybe a little left over for the downstroke.) So then i say, I understand, Mr. Customer, I've bought cars myself before I got into this buisness, so I've been in your shoes before..Now, in a perfect world, trade in value would always be the same as the payoff, but since I have no control of what the market value is on your trade, look at it this way; it really doesn't matter if you get $4,000 or $40,000 for your trade, if the new car you want, the car you deserve, doesn't fit your monthly budget, it's all pretty much irrelevant, isn't it? (wait for the customer to nod or say yes), then say something like "so did you want your payments to start on the first or the fifteenth?" or, "Were you going to put that initial investment on a credit card, or were you thinkin' cash?".....Obviously, this doesn't work on cash buyers, etc., but I kind of come from the school of "It's all about payment"
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