hello, it’s christian younger, and i want to welcome you to another automotive best practice of the week in this week’s edition.
You’re going to learn how to overcome one of the more common objections we get to buy on a car, truck, ban or suv, and that is the payment’s just too high.
Now last week we were in store doing some personal one-on-one coaching and some role play and some more track practice with the sales people when we introduced to them how to overcome a hundred dollar payment objection and still be able to close the deal.
Now, if you want to learn what we showed them in, that practice session, go ahead and make sure you watch this video that’s coming up next now, if this is your first time here and you want to improve your sales skills, learn how to use psychology to Close more car deals and receive unbiased dealership product service and vendor reviews go ahead and make sure you subscribe and then go ahead and click the bell.
So you never miss out on learning anything new.
Okay, let’s go to work.
They said you know what chris.
I’m sorry we just can’t do it.
400 is what it is we got 400, we don’t have any money to put down.
Excuse me, 400 is where it is with no money down.
We’re not going to be able to do it unless you guys want to figure something out, because we need to be at 300 a month, then i’d say: okay.
Well, it sounds like me and sounds like everyone else sounds like you’re on a budget.
Am i right? Yeah, so let me ask you other than us finding a way to fit this.
I don’t know how, but if we find some way to fit this in your budget, do you see any other reason why you wouldn’t take it? No because you’re verifying all that, like you’re, always doing okay.
Well, you know what before you take offer.
Let me just run through a couple things here with you.
So most time budget-minded customers – they obviously they look at the monthly payment, but something also that they like to look at is the total cost of ownership.
Okay and there’s other factors besides just that monthly payment, like number one, would be repairs and maintenance.
So when we were talking earlier when we’re doing the appraisal, you told me that you spent a thousand dollars in the last 12 to 24 months to prepare this vehicle.
So if we take the 12 divide that by the excuse me take the thousand and divide it by the 12 that’d be 83 months.
Excuse me that you spent, but let’s be fair because it’s 15 months ago, so, let’s just kind of average it out.
So if we take the thousand divided by the 24, which should be about half of that right, so it’s about 41, 42, so we’ll say 42 and then, if we add those together and then divide again by two, we come up with in the last two years.
On average, you spent 62 dollars a month in repairs now, when we compare that over here to the new vehicle you’re gon na have that peace of mind package that we talked about and if you remember, there’s three elements to it.
The first element is a full warranty and that’s for the three years or the 36 000 miles, essentially for that first, three years of 36 thousand miles, you’ve got no out of pocket when it comes to repairs that alternator that you wouldn’t have to worry about power Locks go out, 250 dollar motor.
Don’t have to worry about that anything for the most part would be covered now.
There’s some things that are covered by other factory, warranties, exhausted batteries are covered by the own supplier factory warranty now.
The second one is that the meat in the potato package that we talked about, which is the powertrain right and that’s your powertrain transmission, goes out on the vehicle engine.
A seal to the transmission fails and causes the transmission to fail, they’re going to go ahead and repair the whole thing and then the last aspect to that was the roadside assistance.
And if you remember there we were talking, you said you had triple a or you weren’t sure, but if you guys do have aaa, that’s probably going to save you 5-10 bucks.
We won’t even count that, but that’s probably going to save you five or 10 bucks.
A month as well, because the roadside assistance essentially does those types of things toes you if you’re within 35 miles i’ll, tell you right here, if not they’ll, just take you to the closest ford dealership, if you have a breakdown, heck they’ll even bring you fuel.
If you, if you run out of gas, they’ll unlock the car, if you lock yourself in and lastly, they’ll go ahead and give you a battery jump if the battery will fail so again, nothing out of pocket here now.
The second aspect of the total cost of ownership or the total payments of ownership is fuel, and you had mentioned when i was doing the appraisal form i asked i said: are you happy with the fuel economy and you said yeah, you know i mean i’d always Take better, but you weren’t really unhappy with it.
However, let’s just go through the math on that, so you said you were driving 17 000 miles a year.
So first thing we want to do is take the 17 000 miles and divide that by 12 months.
So roughly you’re at 14 100 miles we’ll just we’ll put down the 14 16, so here 1400 miles that you drive per month, and so then your vehicle that you’re currently driving is 20 miles per gallon combined.
So i had done a um a little fueleconomy.
If you see fueleconomy.
gov shows you what the vehicles does in the city and also shows you what the vehicle does on the highway, so you can see the 17 and about 24 so combined, it’s about 20.
So if we take that – and we divide that by the miles per gallon, can you say 20 yeah, so that means we’re using about 71 gallons of gas a month? Okay, now to figure it out here this one.
Yours is a combined that, when you’re looking at the edge is 24 miles per gallon, so let’s see what kind of difference that is 1416 divided by 24 is 59 gallons in a month.
So what are you paying right now for gas uh about 2? 30? Again, okay, so 230.
, so you’ve got over here.
You’re gon na be spending about 71 and you said you’re spending 230.
so over here, you’re at 163.
So if i take that 135 we’re saving about 28 miles or excuse me about 28 a month in gas.
So when we combine those – and we take that and the 62 we’re at 90 – so really your effective payment here is really more like 390, which is only about 10 away from what you’re currently paying right.
Now i mean gosh we’re talking about what, like 33 cents a day to drive the car.
It’s got the three or thirty, six thousand mile warranty.
It’s got the five year: 50, 60 000 powertrain warranty and roadside assistance.
It’s got seven way: power adjustable seat with the lumbar that you said was going to be a terrific help on those long trips down to florida.
I know you and the wife hadn’t bargained for the dual climate control, but it’s going to be a great argument.
Anderson she’s always hot and you’re always cold, and then lastly, you had mentioned that black was one of your favorite colors, and you had said that the other dealership that they were out of the black you had to go with the midnight below.
You know what i know.
This is a little more money you guys want to spend, but that’s why you have to get it because you know if you get the car that you really want you’ll keep it longer.
If you keep it longer, it’ll save you money in the long run.
Let’s get you out of here, so you can start enjoying the car.
Did you guys want to pop quarter populate finish up the recipe? Well, there you have it, how to use fuel and maintenance savings to go ahead and close your deal when the guest tells you the payment’s too high.
Now, if you want to learn more skills, more closes more concepts and ideas like the one.
You just learned, go ahead and make sure you click on the video.
That’s going to be coming up right about now.