hi, it’s christian younger, and i want to welcome you to another automotive best practice of the week.
In this week’s version.
We’re live on location at a ford dealership where we’ve been training some new salespeople this week we’re about ready to do a role play on the objection.
I want more for my trade or, more specifically, we’ve shown the guests, ten thousand dollars actual cash value for their trade and they think they can sell it on their own for thirteen thousand dollars.
So i want you to go ahead and watch how i overcome this objection now, if this is your first time to our channel, and you want to improve your sales skills, learn how to use psychology to close more car deals and receive unbiased dealership product and service Vendor reviews please go ahead and make sure you subscribe and then go ahead and turn the bell on.
So you never miss out on learning anything new, okay, let’s go ahead and get to the role play so back to where we were so bill.
You know hey.
I hope we get 13 000 out of it.
In fact, we’re kind of counting on it that we’re going to get 13 000.
, however that’d be top dollar and whether we had to get that vehicle ready to be in top dollar condition or whether you had to do it.
There’s some certain things we have to do so we can get top dollar for it.
So let me just help you out here before you take you off before you take off and i can show you some of the things you have to do to get.
In top dollar condition now the first thing we have to do is make some repairs on there.
You said earlier when we were talking and we were doing the appraisal form that you needed four tires and boy you’re correct.
It really does need those four tires.
So let me ask you bill you’re gon na be bill, so let me ask you bill: what do you think um? What types of tires would you put on them? I mean you could buy tires for all the way up to two or three thousand dollars, or you can probably buy them for four or five hundred dollars a piece.
I mean a couple hundred dollars a piece.
What do you think that you would do and spend on tires for four tires on this vehicle? The last time i bought tires.
It was 250 a tire okay, so it would be a thousand thousand okay.
So you do a thousand on tires now you you showed me these, so i appreciate that we’ve kind of looked at them.
We would have seen when we were going over them anyway, and that is on the passenger side.
There’s a lot of little like dings, like maybe the car’s been opened into.
I don’t know if you’ve got a garage where, if you’re like me and you’ve got kids and they sometimes will open into the other door, but those are going to have to be done through paintless dent repair, okay, so we’re going to have to go ahead.
That’s the good news is, we won’t have to take it to the body shop and spend thousands of dollars, but we’ll have to take it to the paintless dent repair and there’s probably about five or six of those, and they typically cost anywhere from 25 to 50 Dollars to to go ahead and do now we might be able to get a little bit of a deal because we’re doing more than one – and we do quite a few vehicles here.
So i’m going to go ahead instead of saying 25 per i’m going to say that we can probably get it all done for 150, okay, so the dents! Now the next thing we’re going to need to do.
Is it’s going to detail the vehicle itself? We all know when they look clean, they smell clean.
They feel good we’re going to be able to get more money out of them when they’re standing tall.
So we’re going to have to do a complete detail on this vehicle.
It’s not filthy, but there’s some dirt on it.
There’s some things that have to be done and when i say a complete detail, i’m talking about us doing a wash wax a complete vacuum and then having somebody go in and actually go into, the crevices with a q-tip or a fine-tooth comb and kind of go In and get the dust out of the gear, shifters and some of the different places, because the vehicle’s you know five six seven years old, so it does accumulate some of those things.
What do you think now? You could do this all on your own, or you can spend anywhere from 100 to 300 to have a complete detail done on a vehicle.
What do you think you would spend either? Would you do it on your own, because, obviously you have material costs or would you spend to have it done and have it completely detailed about 120 bucks? Okay, so we’ll use 120.
Now the next thing is advertising.
So, if you’re going to sell that vehicle on your own you’re, going to probably want to sell it quicker than later, because you’re making payments on it right now so you’re going to have to advertise it now, here’s the good news you don’t have to like the Old days, you don’t have to take out a classified ad.
That probably would cost you anywhere from 150 to maybe 500, depending on how long you ran it right now.
You could actually do a cars.
com and an auto trader and they go on ebay and they go out to like the whole world and actually they have free listings.
However, with the free listings, you can’t put a picture on there and we all know i mean you wouldn’t come and look at my car without a picture so to have pictures on there.
They have packages that are based on pictures and they start at a hundred dollars and they go up to about 350 dollars.
So what would you do as far as a package on there to advertise it, probably somewhere between 200 450.
, all right, we’ll just use? Let’s just use 200.
okay, so four is discount.
So if you were gon na have this vehicle um online on ebay now i’ve got like a brother-in-law that he’s always trolling around on ebay and cars.
com and auto trader and he’s always just trolling around on private parties or even dealers, but he’s always just looking for A steal looking for a deal right, so if somebody that’s looking at a private party vehicle, i mean, don’t you think they’re going to want some type of a discount yeah.
So what type of discount do you think you’d have to give up to entice them to go ahead and do it that could be anywhere between 100 and 500, depending on what they’re looking for all right? Well, let’s just use! You want to just use 300 250.
Let’s use 250, let’s split the difference and we’ll use 250.
Now, if you’re going to advertise that you’re going to put it on there, there’s going to be some time involved now, obviously, there’s going to be time involved, taking pictures of it and listing it online and that type of thing, but that’s not really what i’m talking About the time that’s going to be involved is answering the emails, the phone calls the texts and then arranging times to have the vehicle shown and then it’s going to maybe take even a little more time, because if you’re going to want to have that vehicle shown, Like maybe at a different site, you know you probably don’t want these people coming to your house, so then you’re going to take it down to a you know some type of a public place to have it shown and that’s going to take some of your time Depending on how long it takes it’s going to obviously take more time, but even if it only is a couple, you know a couple times: you show it it’s going to cost you something.
So what’s your time worth for that 200.
300.
500.
000.
What do you think? 300? Okay, now six we’ve got a tax credit, okay, so in the state of iowa we’re going to make this easy you’re from the state of iowa.
So in the state of iowa the nice thing about iowa.
Is they only tax time and i’ll give you a handout on this? They only tax on the difference so right here, you’re going to get taxed instead of getting taxed.
On the 20 000, the selling price there you’re going to get taxed on the 10 okay, so you’re only going to get taxed on the 10.
So 5 of 5 of 10 000 is 500, so actually you’re going to get that credit.
You’re going to really get a credit of 500 or you’re going to save 500, because you’re trading that vehicle and versus selling it.
Because, if you come back here and and sell it and purchase this one, then it’s going to be a thousand dollars, so we’ve got a 500 credit there now.
Lastly, you said that you’ve got payments on this vehicle you’re, paying three hundred dollars a month on the price of the or paying 300 a month on this vehicle.
It typically takes about 60 to 90 days to sell a vehicle.
Let’s say that you get lucky, though, and you sell it in 60 days, okay, so it’s going to cost us 300 you’re gon na have to make those payments you’re gon na have those three hundred dollars in payments that you’re going to be making during that time.
So that’s another 600.
, so let’s add up and see what we’ve got so i’ve got a thousand and i’ve got 150.
So we’ve got let’s see 252.
7 here, so we’ve got 1275 plus i’ve got another 450 plus i’ve got another 8 1400, twelve eleven three.
So what we’ve got – and let me make sure my master because it doesn’t look – it looks like i went a little bit too high, so we got a thousand one.
Fifty and we’ve got two and a quarter so right here, we’ve got 12.
75 and then we’ve got 450, so 1275 450 and then we’ve got 800 and it’s 1400.
So actually i was wrong.
I just wanted to double check the math again, so we’re five here we’re at 12 here we’re at eight we’re at 11 here so we’re at 3 125.
So i mean really effectively you’re getting 10 000 in trade for the vehicle.
But with that one that 3 125, we were talking about effectively it’s like you’re, getting 13 125 in trade gosh.
I got to tell you i’d be crazy to let you go ahead and trade it in, because you’re actually going in the hole by trading by by selling the vehicle on your own versus trading into us today.
I know you like the vehicle.
Why don’t we put all the shopping behind me and get you out of here, so you can start enjoying your new vehicle? How do you want to register it and joe or joseph, so that’s the plug , you .
