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Last Updated
26th of January, 2011
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When we get an objection to our manager's trade appraisal, we need to find out why they feel it is unreasonable and if they have a different value in mind, where did they get that value. One of the common sources of inflated trade expectations can be other vehicles like theirs that they have seen in the classified ads. Use a feel / felt / found approach to educate the customer on how this can be an unreliable indicator of trade value. Keep it conversational like this:
You: "How did you arrive at that value - my manager is sure to ask?"
Client: "I saw a car just like mine advertised in the classified ads for $3000 more than your appraisal!"
You: "I understand how you feel. Many clients have felt that the prices they see in advertising SHOULD be a good indicator of a value on their car. However, when they put themselves in the position of the used car buyer they found that the ASKING price in ads is not necessarily a good indicator. Imagine if you were buying that advertised used car. Would you make out a cheque for the full ASKING price and drive over to get the car or would you offer considerably less?" (Allow them to answer)
You: "Of course you would also expect that the seller would inflate the asking price because he knows that people will want to offer less. So you see that the INFLATED asking prices in classified ads are usually not a reliable indicator of true values."
You: "We often find that someone will advertise their used vehicle in the classifieds because they have been to a few dealerships who have given them a realistic trade value that they have not been happy with. They try out a much higher price in the classified ads hoping that someone will pay it - we often see the same vehicle advertised week after week which is a pretty good indicator that the price they want is much too high. So do you see how advertised prices can be a misleading indicator of value?"
Now build up the credibilty of your manager and their professional appraisal process: "We are one of the highest customer satisfaction dealerships in the area. We certainly couldn't have achieved that if we weren't fair with our clients. My manager uses an number of industry guides, appraisal tools, and years of experience to come up with an accurate appraisal that is fair to you but still allows us to sell your car at a fair price to another customer."
Next month... combatting off-the-cuff trade values given by competitor salespeople.
"Many of life's failures are people who did not realize how close they were to success when they gave up."
-Thomas Edison
ISI/PAL Automotivaters is a Canadian company celebrating 23 years of helping dealerships increase volume and profit through training, coaching, and accountability systems. Our clients range from single dealerships of all sizes to dealer associations and entire dealer networks in Canada, USA, New Zealand, Australia, the Philippines, Indonesia, French Polynesia, and Asia.
See us at: www.automotivaters.com
Copyright © 2011 by ISI/PAL Automotivaters Inc. If you share this, print it out, or reproduce it in any way, please retain this copyright statement.
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