steve, while we’re waiting on my boss to come back appraising for your vehicle um.

I got to thinking about you’re talking earlier about all the changes in the car business and actually any business because of this covid thing and you’re right and what i was really thinking about, though, was the car business, and i was thinking that there’s been a lot Of change in the car business, just in the last five or six years, even prior to all of us, when was the last time you bought a car a couple years ago.
Okay, and did you have to do a lot of negotiating to get a to get a discount yeah? Well, the good news is, you won’t have to do that here.

Are you familiar with the term market-based pricing, market-based pricing? What it is is a third-party software that goes out and searches, the marketplace for the exact same new and used vehicle, and then it compares the prices.

It’s the same third-party software that you’re already used to, because it’s pretty much now everywhere.

Um less was the last time you bought milk at a grocery store a couple days ago.
The milk was market-based price, they decided they went out and looked and see what the rest of the stores were offering and they determined where they wanted to price their milk.

Based on maybe what they had on sale that week or what they were trying to achieve, um the produce they’ve got market based price amazon, airlines, hotels, all market based price.
In fact, i bet you did a little shopping for trucks online before you came in here.
Am i wrong, and would you even have stopped in if we were priced higher than everyone else? That’s that’s just it.

If we don’t price the vehicle right, you or anyone else for that matter, won’t even come and look at it, let alone take it home and purchase it.
So we’ve got a pre-discount on our vehicles, so i just wanted to make sure you’re aware of that.
A lot of dealerships do something similar now, but again i see you just pulled back up with your vehicle.

So hopefully he’s got it appraised here and we’ll go ahead and give you some figures.
Okay, all right! So we come back all right, steve, so steve! Here’s! Your opportunity, so the 2019 ford escape they’re at the original market price, just a little over 40.
now they’re, giving you 5 500 in free discount.

So the pre-discounted price is 33 975 and then the trade they love it.
They want to buy it for 8, 000.
So that leaves us a difference of 25 975.

All we need to do is collect the tax the license.
Obviously, we need to have a clear title: i’ll go ahead and i’m going to go ahead and have you okay it here.
I guess the only question would be: how do we want to title i’m going to type in steve or steve uh steve, but i wan na.

I want a little bit more on the trade okay um uh.
How much were you thinking at least a thousand okay um? If you don’t mind me asking i mean how do you arrive at that house? I just figured.
I could get it to get more out of it somewhere else in good shape.

Okay! Well, steve! I understand that you’d like to get 12 000 or excuse me a thousand dollars more for more, like nine thousand dollars, and i can appreciate that, based on what my management team’s done for research, the fair market value for the vehicle is actually eight thousand dollars.

You’re asking for another thousand dollars more or about 12 and a half percent more so, and that might be a little bit problematic based on my team’s research or the management team’s research on that vehicle.

I mean just imagine this imagine you’ve done quite a bit of research on a suv you want to buy just like you did, and you knew that the fair price for one was right at around yeah.
Just for a little over uh 33 almost did 34.
You knew that was the fair price and then the dealership they added when you say 34.

, they added another 12 percent to that or another 42.
So would you buy the vehicle for what 35 we’re talking about 38? 39 000, knowing absolutely yeah knowing that they’re and that’s i’m going to kind of run into the same reaction with my management team.

If i ask them to pay you another 12 and a half percent more than fair market value for the trade, so i get it that you just want to make sure you’re getting as much as you can for the trade.

I’d do the same thing.
If i was in your spot, but this is the fair market value for the trade, so unless i’m missing something that is where they’re out for the trade you know, i know you like the truck or the suv.

Let’s just get all the shopping behind you and get you out of here, so you can start enjoying this suv uh.
I think i’m gon na give it a shot just trying to sell it on my own okay.
So if you sell it on your own um or if we sell it, obviously there’s some things that you want to do to put it in top dollar condition.

So if you’re going to sell it on your own, are you going to sell it for 9? 000? Are you going to try selling for more or well i’d, probably try to sell for a little bit more okay, and what do you? What are you thinking? You could be trying to sell that? I probably started 10 okay, so you started at 10 000.
and i would tell you 10 000, i think, you’re being very realistic.
I think that is his top dollar for the the uh.

The laser excuse me lacrosse.
I think that is top dollar for it.

However, whether you sold on your own or whether we sold it there’d be some things that we’re going to have to do to go ahead and get that in top dollar condition and i’m just going to run through them.

So if you decide to sell it on your own, you know and if you don’t decide to sell on you kind of know where we’re coming from so the first thing is, is repairs now you said earlier um.
In fact, i’ve noticed we did the appraisal together.
Excuse me: we walked around your vehicle together before we did the give it to the manager for the appraisal, and you needed two new tires.

You need an alternator and you’ve got three small dents so tires.
I know you were thinking about replacing those you mentioned.
What would you spend on two new tires for the rear – probably at least 500 okay, so you have 500 there and then an alternator.

So i’m not sure did you get an idea? Were you looking at? Maybe i never got a quote for that one, but i’d probably go to the user.
Okay, probably looking at like around 500 somewhere in there usually 500 to a thousand dollars for the alternator and then lastly, the dents, have you looked at ever getting those uh prepared? No typically, we’ve got a dent repair company that comes around.
They do painless debt and they typically are about fifty dollars for a small bent uh to 150, depending on how hard they are to get out and then they’re about 150 to 250 for a large dent.

So, let’s just say that we can get them all done in a little discounted price for fifty dollars each so it’s 150 there! So we’re talking about 1050 there.
Now the next thing you’re going to want to do it’s a clean car.

However, you’re going to want to do a full detail, i mean we all know that a car that stands tall looks good, smells good and is shining is going to get more money right.

So what we’re going to do is we’re going to do a thorough cleaning.
We’re going to wash it wax it we’re going to shampoo the carpets, we’re going to go ahead and shampoo, the interior, we’re going to go ahead and disinfect it for the coven and then we’re going to have to like take a fine-tooth comb and go in and Get the dust and the crevices and the gear shifters and those types of things so we’re going to give it a good once over.
Typically professional details are around 100 to 250.

What do you think you’d spend to have it detailed uh, probably somewhere in the middle? Okay, so should we use, like maybe 150 yeah, so the next thing is you’re making payments on this vehicle, so you’re going to want to obviously sell it quicker than later so you’re going to want to advertise the vehicle.

Now the good news is back in my day we put in the newspaper, it would actually you’d be limited on how much information you could put in there.
You’d maybe get a picture in there and it would only go out to the local community.

Now you can go out online to cars.
com a facebook, an auto trader, and you can advertise it to basically the whole united states and america and the world.
Actually you can advertise it to them for a small amount of money.

In fact, some of these are free sites.
However, to market it right with pictures and whatnot, for instance, the cars.
com gurus or auto traders typically 50 to like 100 and 100 somewhere in there.

So what would you do on advertising? I’d probably do the better package with pictures and all that for 700.
, and then fourth is discount, so people that are shopping on a third-party site like cars.
com, auto trader facebook.

That type of thing, if they’re looking at a private listing, which is what yours would be, they typically are going to look for some type of a discount.
There wasn’t some kind of deal or they probably would have purchased something with a warranty, maybe at a dealership.
So what type of discount do you think you’d offer to try to get a solarwinder? Well i mean, like i said.

I want at least nine.
That’s why i said i started ten, so probably a thousand okay, so you do a thousand and then the next one’s time.
So there’s going to be some time involved, obviously in taking the vehicle to get it repaired and the detailing and and listing it with the pictures and advertisement.

The real time is going to be spent when you’re answering the ads.
The phone calls the text the emails anytime day or night, and then you’re setting up appointment times with people coming from out of town directions when you do meet them, probably that you’re going to probably want to go to a designated place rather than having to come To your home right, and so rather than do that, you’re going to have to meet them in a designated place, you’re hoping they’re going to be on time, you’re, hoping that you sell it on the first crack, but even even with that, you still got time invested.
So what do you think your time is worth in this situation? 300 hundred a thousand three hundred okay and then there’s also the tax, so there’s a tax savings.

So the good news is in the state of illinois.

They go ahead and give you a tax break.
If you go ahead and trade, the vehicle in so, for instance, if you trade the vehicle in you’re, going to be text on this amount here, the 25 975, if you don’t trade it in you’re, going to be taxed on this amount here, this 33 975.

So in essence, you’re getting nine or eight thousand dollars savings from tax.
Now in illinois, it’s six and a quarter.

So if we do point zero, sixty five times, eight thousand should be what five yeah so you’re gon na be saving five thousand, so you’ll forego or lose out on a 5 000 or excuse me, 500 tax savings.

If you don’t trade, it and you just sell it on your own and then the last is payments.

So you said: you’re making payments um not a lot but you’re only making payments of 200 a month, but it typically takes us anywhere from 30 days to 90 days to sell a vehicle.
So let’s say you sell it in the first month.

Let’s say you sell it right away: you’re still gon na have to make that payment.
Obviously, so we’re going to have that payment of the 200.
Unfortunately, you have to make that on the car that you’re trying to sell or get rid of, let’s just kind of tally this up.

So if we look at it here, we’ve got another thousand there, plus 300 plus 500 plus 200, we’re talking 3 300 to get this vehicle in top dollar condition.

I mean that’s effectively if you’re getting eight thousand dollars for your trade.
It’s effectively like getting what eleven three i got, ta tell you steve i’d, be crazy to let you not trade.

This vehicle, in i mean you’re, actually probably gon na, go a little bit backwards.
Either you’re gon na have to ask more for it.
So i know you like the vehicle again just trying to make sure you’re getting as much off as you can making sure you’re getting a good deal.

So i’m going to wrap this thing up, get you out of here soon and start enjoying this new tractor new suv.
I guess the next question would be.
Do you want to pop water across what finished burst? Cable i’ll, take the water? Okay, .

About Richie Bello

Richie Bello has a vast knowledge of the automotive industry, so most of his services are faced towards automotive dealerships. He couples all his skills with the power of the internet to render even remote services to clients in need of a little brushing

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