March 17, 2024 • 17 mins
In today's episode of "Prepare to Win," learn how to overcome common trade objections and close with confidence. As we navigate through handling these objections, you'll gain a deeper understanding of how to connect with your buyer both logically and emotionally. Transform your approach to trade-in objections by pointing to the hidden savings that are found in the whole package.
Connect with us at https://preparetowin.com
Call or Text David @ 765-560-7338
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
David Lowe (00:00):
I want more for my trade.
Right, right, common objectionSales.
People are hearing it every day.
Today, we're going to talkabout how to overcome it and
close with confidence.
Stay tuned.
Grace Lupoi (00:21):
Hi, I'm Grace and I'm here with David Lowe, the
automotive sales coach, and,like you said, we're talking
today about how do I overcomethat trade objection right, yeah
.
Yeah.
So it's pretty powerful andreally a common objection that
we get what's one step that wecan use that's really going to
help us.
David Lowe (00:34):
So isn't it funny.
I think we all want more forour car than the market says is
worth.
I think I want more foreverything that I own than I can
get for right Now.
The market decides what thingsare worth, but we all have these
attitudes or feelings, don't we, on what things are worth,
that's right.
And we always overvalue thethings that we have right, and
(00:57):
so it's not uncommon.
Now we're talking specificallynow to automotive salespeople
today, and our podcast and theepisodes are dedicated to
seeking excellence in our life.
And maybe you don't sell carsand maybe you think today's
podcast and roll, but I think itis, because we're going to talk
(01:17):
about communication, right,proper communication, empathy
and logic and using stories tohelp buyers see concepts, to
help others see concepts andtake action.
That's what selling is Persuadepeople the merits or benefits
of something, right.
So we're going to focus onusing this trade because I bet
(01:38):
you every one of us has eithersaid it or heard it right I'm
not getting enough from my trade, and most salespeople are so
unprepared I just don't get it.
They hear it all the time.
Okay, so we go into adealership and I'll say to the
general manager okay, I wantfour grand more from my trade.
How do your salespeople handlethat?
(02:00):
And typically they say they getup and talk to a manager and I
say, well, is that what you wantthem to do?
Well, no, every time they getup, of course, right, so if
there's a better plan, would youwant them to have it?
And there is a better plan.
That's what we're going toshare with today.
This is an amazing one.
I said the other day to amanager I want 4,000 more for my
(02:20):
trade.
What are your salesmen saying?
Here's what he said.
There's the door.
I've never heard that onebefore, but it's so true that I
think salespeople are under themisnomer that their job isn't to
help correct their buyer'sthinking.
All buyers want to pay lessthan it takes to buy what they
want to buy.
All buyers that have a tradewant more for it than the
(02:42):
market's sentence worth, and allbuyers are always surprised by
how big the payment is.
Right.
Three things we know.
Now, when we're not talkingabout the other we're not going
to talk about that trade-in.
Now, how come they want more?
Well, it's always been.
If I owe 20 grand, guess howmuch I want for my trade.
Grace Lupoi (02:58):
At least 20 grand.
David Lowe (02:59):
If I owe more than the market, I always think my
car is worth what I owe.
If I owe a dollar, I never askfor a dollar.
That's one of those things,right.
So maybe payoffs drive thatright.
Maybe shopping around, they seewhat other people are asking
for cars like theirs?
There's so much informationonline.
(03:20):
People go out online andthere's bad information online.
Sometimes they misclassify thecar's condition.
There's a lot of reasons, butthese are feelings, they're
emotions.
Right, I want, and what happensif we can't change the feeling?
So we said that our salesprocess, everything we do, is to
(03:43):
help our buyers thinkdifferently.
We want to think differentlyabout us as salespeople, about
buying a car, about pricing,about everything really.
Because if our thinking drivesour actions and our actions
create results, our buyers'thinking drives their actions.
So we want our buyer to leavehere satisfied.
(04:03):
They came for a new life.
Hi, I've got this life here andI want this life here.
Right, I don't want to leave itin the old life.
They came to leave that lifebehind.
It's my job to help them find away to say yes to the life that
they want.
And we know we're talking abouta car as a lifestyle.
We know that we don't sellsteel.
We sell lifestyles how that carfits their family, their work
(04:26):
and their play, and so myability to help them reshape
their thinking on the trade isso important.
Grace Lupoi (04:33):
So important.
David Lowe (04:33):
If I don't do it, they leave in their old life.
They're disappointed, they'renot happy.
Ok, and now I have to do it ina way.
If they say yes, that they feelcomfortable with so much sales
train you have out there, isreally negative, reinforced and
pressure driven.
There's some even new salestrainers.
They're always I'd give youmore if your car wasn't such
(04:53):
crap.
Now they don't say those exactwords, but they might as well.
It's an attitude thing.
They're like the 180-poundsixth grade are on the
playground right.
What a horrible way to sell andto live and to be treated as a
buyer.
We should be more like askilled surgeon.
Ok, so we have a plan, don't we?
We know what's going to happen.
(05:14):
We train our salespeople.
What's going to happen?
Don't be surprised.
People are going to say what Iwant more from my trade.
Some people are testers, someare negotiators.
That's a different episode, buttoday we're going to walk
through and the first thing is,since we know it's a feeling,
what's the first thing we do?
I want more from my trade.
Grace Lupoi (05:33):
I totally understand.
David Lowe (05:35):
You meet me with what.
Grace Lupoi (05:36):
Empathy.
David Lowe (05:38):
You meet a feeling with a.
What A feeling.
Right, speak to the heart.
I know, right, I'm the same way.
We all want more for a car thana market.
So does work.
This keeps our buyer fromfeeling that they're being
singled out or taken advantageof.
That's right.
There's what's called socialproof, there's power in numbers
(06:00):
and all of us feel this way.
So this is not a episode aboutempathy.
We talk about it over and overand over because it's the number
one neglected skill thatsalespeople active listening in
empathy I could probably putside by side.
But empathy, slowing down andabsorbing the buyer's fear.
Then we move into logic.
(06:20):
We talk to the heart.
Now we talk to the mind.
Right, logic.
How do we come up with thesetrade numbers anyway?
So in the old days it was amanager against a customer and
the salesperson played thisliaison thing.
It was a really crappy game.
80s and 90s, when I startedselling, it was part of that.
We did it and it was horrible.
(06:42):
I'm so glad we've advancedbeyond that.
So it's really not the managerthat decides anyway.
What decides what the car isworth.
The market, the market.
So we tell them the logic storyand we tell it in what
storytelling is important.
Again, this episode was notabout storytelling.
We'll get to that.
We've covered that a little bit.
(07:03):
We'll get to that again.
So that's why we ask you tofollow and like this podcast,
because you're going to getvaluable sales principles and,
by the way, life principles.
I think you can equate a lot ofthese things to just normal
life.
Empathy and logic can beequated to everything in life.
Absorb their feelings and thenspeak to their logical side.
(07:26):
It has to make sense to them.
It has to.
So we tell them how we price,how we came up with the number
on the market price, for the carcame from us doing a market
study.
Right, we call that thecomputer story.
If you're on our dealershipplaybook, you know the computer
story because we use it all thetime.
Okay, now, as a part of thatcomputer story, we have this
(07:48):
thing called real trade value,and that's what the focus of
today is about, and we've got along way to get to this right.
But we want you to know thatthis is, this doesn't stand on
an island by itself.
It's a part of thatresell-re-ask tool, it's a part
of helping the buyer feel better.
Right, real trade value whatdoes it mean?
(08:08):
Okay, so we know there's marketvalue, cash value.
Back in the 80s and 90s, youwould go to Kelly Blue Book and
they would have loan trade in,and retail Loan was cash value.
In other words, here's what thebank feel comfortable lending
you for this car, because if youdon't pay for it, they could
(08:31):
cash out of it.
Okay, okay, cash value, marketvalue, cash out of it.
Now, if you go to KBB, they callit instant cash offer.
It's still there, instant cashoffer.
It's amazing, though peopledon't realize when they go to KB
be they give you to what numberdo you want on your trade?
(08:54):
Well, how come I trade?
Have two values.
They say do you want theinstant cash value on your car
or do you want the trade-in,which also equates private
seller?
What Now, if it's worthtrade-in, how come KBB won't
write you a check for it?
Because it's not worth that.
So we have, throughout time.
(09:14):
There's a cash value indealership world because ACV,
actual cash value, market value.
Kbb calls it instant cash offer.
That's what the market studyreveals.
So what's the differencebetween Cash and trade value?
Aha, so KBB has on it.
(09:37):
You want the cash value, whatwe'll write a check for or what
we're gonna tell you?
You should tell dealers, youshould get for your car.
Now, why does it?
How do ways?
Kbb exists to drive traffic,that's right, so they could sell
information.
Why does any website exist?
They're not just hey, this is aconsumer Uh service.
We're gonna go ahead and spendmillions on making this website
for you, just for your benefit.
(09:57):
We just want you to be happy.
Now they have it there, sopeople come, so they can sell
from it, right, does that makesense?
Yeah, so they have to.
People gotta want to come, andlot of.
There's that old comic that has,um, you know, convenient lies,
and the line is really long andinconvenient truth, and the line
is really short.
(10:18):
People want to be lied to,right?
So tell me more.
Tell me it's worth more than itis.
Alright.
So we go there and we look atthis trade value.
What does trade value mean?
It's not cash value.
They won't want to check for it.
You know what it represents analgorithm of, maybe, what you
should get off of the retailprice of the car you're buying.
So, if you're buying a car andyou're trading this car, here's
(10:42):
what you should get on trade.
Now what if the dealer, though,has already discounted their
car there?
we go See there's where theproblem exists, that that trade
in value is assumed to be off alist price or a retail price,
maybe even more than a listprice, a retail price.
So if you go look at KBB forthe retail price on this car,
(11:04):
what would it be right?
So so we have this differencebetween cash value and trade
value.
Trade value is not what youshouldn't get in cash, but
possibly what you could get whenyou trade in your car and when
you factor in the cash valuePlus the discounts so you're
saying it's more than just myold car?
Grace Lupoi (11:21):
There's multiple things.
Take it to consider.
David Lowe (11:23):
That's it.
So when we talk about realtrade value, we want people to
know it's not just a cash value.
You got a factor in anydiscounts or what Incentives
you've been given, and if youadd those together you come up
with what we might call tradevalue.
Does that make?
Grace Lupoi (11:41):
sense.
David Lowe (11:41):
So real trade value, or helping our buyers see
they're getting more for the carthan they think, is not just
about the cash value.
We wanna add in any discountsthat we've given them up front
and incentives to buy.
That's what we might call tradevalue.
But it doesn't end there, doesit?
No?
So there's more.
When we're saying to the buyerthey want more for the trade,
(12:02):
they're probably getting morethan they think.
They're not just getting themarket value, they also got the
discount which might equaltogether like a blue book trade.
There we go.
Now we're in Indiana.
Not all states are this way,but most of them are.
Grace Lupoi (12:16):
There's a tax credit, that's right 7% of what
my trade in value is.
I get back.
David Lowe (12:22):
So if it's a $20,000 trade, you have a tax benefit
of what?
$1,400.
So really, your trade is 21-4with the tax credit.
In other words, you'd have tosell your car outright for 21-4
in order to equal the same as 20grand on trade in.
Does that make sense?
So you've got that cash valueplus the discounts, right?
(12:44):
That kind of equals what wemight call blue book, blue book
value.
And then we've got this taxsavings.
Is that all there is?
No, no See, if you trade inyour car, do you have to wash it
, change the tires, put brake?
No, if you resell the car,you're probably gonna wanna do
that or nobody's gonna wanna buyit.
That's right.
So you put your car online.
(13:05):
They're gonna tell you, bringit up to speed.
Or people are gonna come lookat it and they're not gonna buy
it.
Just like your house, you gottaget it ready for sale.
You don't sell it the wayyou're living in it.
You make it better than you'reliving in to sell it.
You paint the floorboards thatyou haven't thought about for a
long time, but when you look atthem through a seller's eye like
that needs to be all right.
So some of you who has a tradein.
(13:25):
If they were gonna sell it to afriend, what would they do?
They'd typically bring it up tostuff Tires, brakes, chips,
dents, scratches, interiorcleaning stuff like that.
So by trading the car and dothey save all that money?
I sure do.
So what if a salesman would say, grace, I get it.
I know how you feel.
(13:47):
I always want more from my carand the market says it's worth.
The cool thing is you know howwe came up with the market value
.
Of course we use our computerstory for that.
And, grace, you're getting morethan you think.
You're not just getting thatcash value, don't forget.
Online we gave you thatdiscount.
You put those together.
That's more like a blue booktrade.
(14:07):
And then, grace, by tradingyour car and you're saving
another blank percent on taxes.
If you add that to go, look howmuch you're getting.
You still get more than thatBecause by trading your car and
Grace, you don't have to gothrough the time, the hassle or
the expense to recondition yourcar.
The dealership now owns it.
You just give us the keys andwalk away right.
(14:29):
They take it, we spend two tofour cents a mile.
That's plus tires and brakesand big items.
Right, you add all those uptogether and you are what
Killing it on your trade.
So the next time that you hearI want more for my trade, I want
you to think you're gettingmore than you think.
And now you have got a way togo ahead and take buyers through
(14:49):
it.
Does that make?
Grace Lupoi (14:50):
sense it does.
David Lowe (14:51):
There's one last thing I should note that
manufacturers know the tradecycle of their buyers.
That's how they adjust productlaunches, the leasing terms that
they have.
Manufacturers are pretty smartright, they're on a cell car,
but they know how to market carsand they know how to build them
genius like that, and so to getmore people to trade their car
(15:14):
now they often offer incentives,and these incentives low
finance rates or rebates a lotof that is really designed to
make it valuable to trade now.
Save if you do this now.
In other words, it's okay ifyour trade is not what you hope
for, because you're also gettingthis incentive.
(15:37):
That's right.
So as salesmen, as mastersalesmen, we're not gonna focus
on one number.
We're gonna look at the what.
Grace Lupoi (15:43):
Whole package.
David Lowe (15:44):
The whole package and when it comes to the trade,
and we're not just gonna talkabout the cash value, we're
gonna talk about the discountsor the adding together the blue
book.
We're gonna talk about taxsavings, reconditioning savings,
and of course we have theincentives design to make it
easy for you to say you knowwhat it's that way I hope to get
from my car.
But when I add all this up, I'mkilling it on my trade.
(16:05):
Now, by the way, in thedealership playbook we call what
we just did the resell re-assright, A five step term, as most
comfortable negotiating tool onthe planet and we wanted to
give you kind of a free lookinto that today, because I know
so many salespeople are facingus and I feel bad that nobody's
showed you.
Here's the door and let me talkto my manager.
(16:27):
The worst things that you can do, by the way, I saw a lot of
when I first year selling cars.
I wasn't trained, so whensomebody said I want more for my
choice, let me go talk to myboss.
I didn't know and I sold carsand made money.
That doesn't mean I did itright or did it well when I
learned that it's my job toadjust how my buyer feels about
their trade number.
(16:47):
My sales went up, my incomewent up, my customers were
happier, everybody was happier,and that's what we're after.
Okay, so today's episode what'sit about?
You're gonna hear objections,should you be prepared.
Grace Lupoi (17:01):
Absolutely.
David Lowe (17:02):
Can you be prepared?
You ever.
Every objection's been heardbefore and if it's gonna happen,
don't you owe it to yourself toprepare.
So this prepare to win meansprepare for the common
objections.
If you were a football team,you'd be preparing for the Blitz
, right.
You'd be preparing for what youknow the defense is gonna do.
We're salespeople.
(17:23):
We know that buyers have priceobjections.
One of them is the trade, andnow you're more prepared than
you used to be, and that's abenefit of joining the Prepare
to Win podcast.
So like us and follow us, andI'm David Lowe The Automotive
Sales Coach, with Grace Lupoi,and we wanna thank you for being
with us.
We wanna tell you good sellingand seek excellence this week.
(17:43):
Be better today than you wereyesterday.
I want more for my trade.
Right, right, common objectionSales.
People are hearing it every day.
Today, we're going to talkabout how to overcome it and
close with confidence.
Stay tuned.
Grace Lupoi (00:21):
Hi, I'm Grace and I'm here with David Lowe, the
automotive sales coach, and,like you said, we're talking
today about how do I overcomethat trade objection right, yeah
.
Yeah.
So it's pretty powerful andreally a common objection that
we get what's one step that wecan use that's really going to
help us.
David Lowe (00:34):
So isn't it funny.
I think we all want more forour car than the market says is
worth.
I think I want more foreverything that I own than I can
get for right Now.
The market decides what thingsare worth, but we all have these
attitudes or feelings, don't we, on what things are worth,
that's right.
And we always overvalue thethings that we have right, and
(00:57):
so it's not uncommon.
Now we're talking specificallynow to automotive salespeople
today, and our podcast and theepisodes are dedicated to
seeking excellence in our life.
And maybe you don't sell carsand maybe you think today's
podcast and roll, but I think itis, because we're going to talk
(01:17):
about communication, right,proper communication, empathy
and logic and using stories tohelp buyers see concepts, to
help others see concepts andtake action.
That's what selling is Persuadepeople the merits or benefits
of something, right.
So we're going to focus onusing this trade because I bet
(01:38):
you every one of us has eithersaid it or heard it right I'm
not getting enough from my trade, and most salespeople are so
unprepared I just don't get it.
They hear it all the time.
Okay, so we go into adealership and I'll say to the
general manager okay, I wantfour grand more from my trade.
How do your salespeople handlethat?
(02:00):
And typically they say they getup and talk to a manager and I
say, well, is that what you wantthem to do?
Well, no, every time they getup, of course, right, so if
there's a better plan, would youwant them to have it?
And there is a better plan.
That's what we're going toshare with today.
This is an amazing one.
I said the other day to amanager I want 4,000 more for my
(02:20):
trade.
What are your salesmen saying?
Here's what he said.
There's the door.
I've never heard that onebefore, but it's so true that I
think salespeople are under themisnomer that their job isn't to
help correct their buyer'sthinking.
All buyers want to pay lessthan it takes to buy what they
want to buy.
All buyers that have a tradewant more for it than the
(02:42):
market's sentence worth, and allbuyers are always surprised by
how big the payment is.
Right.
Three things we know.
Now, when we're not talkingabout the other we're not going
to talk about that trade-in.
Now, how come they want more?
Well, it's always been.
If I owe 20 grand, guess howmuch I want for my trade.
Grace Lupoi (02:58):
At least 20 grand.
David Lowe (02:59):
If I owe more than the market, I always think my
car is worth what I owe.
If I owe a dollar, I never askfor a dollar.
That's one of those things,right.
So maybe payoffs drive thatright.
Maybe shopping around, they seewhat other people are asking
for cars like theirs?
There's so much informationonline.
(03:20):
People go out online andthere's bad information online.
Sometimes they misclassify thecar's condition.
There's a lot of reasons, butthese are feelings, they're
emotions.
Right, I want, and what happensif we can't change the feeling?
So we said that our salesprocess, everything we do, is to
(03:43):
help our buyers thinkdifferently.
We want to think differentlyabout us as salespeople, about
buying a car, about pricing,about everything really.
Because if our thinking drivesour actions and our actions
create results, our buyers'thinking drives their actions.
So we want our buyer to leavehere satisfied.
(04:03):
They came for a new life.
Hi, I've got this life here andI want this life here.
Right, I don't want to leave itin the old life.
They came to leave that lifebehind.
It's my job to help them find away to say yes to the life that
they want.
And we know we're talking abouta car as a lifestyle.
We know that we don't sellsteel.
We sell lifestyles how that carfits their family, their work
(04:26):
and their play, and so myability to help them reshape
their thinking on the trade isso important.
Grace Lupoi (04:33):
So important.
David Lowe (04:33):
If I don't do it, they leave in their old life.
They're disappointed, they'renot happy.
Ok, and now I have to do it ina way.
If they say yes, that they feelcomfortable with so much sales
train you have out there, isreally negative, reinforced and
pressure driven.
There's some even new salestrainers.
They're always I'd give youmore if your car wasn't such
(04:53):
crap.
Now they don't say those exactwords, but they might as well.
It's an attitude thing.
They're like the 180-poundsixth grade are on the
playground right.
What a horrible way to sell andto live and to be treated as a
buyer.
We should be more like askilled surgeon.
Ok, so we have a plan, don't we?
We know what's going to happen.
(05:14):
We train our salespeople.
What's going to happen?
Don't be surprised.
People are going to say what Iwant more from my trade.
Some people are testers, someare negotiators.
That's a different episode, buttoday we're going to walk
through and the first thing is,since we know it's a feeling,
what's the first thing we do?
I want more from my trade.
Grace Lupoi (05:33):
I totally understand.
David Lowe (05:35):
You meet me with what.
Grace Lupoi (05:36):
Empathy.
David Lowe (05:38):
You meet a feeling with a.
What A feeling.
Right, speak to the heart.
I know, right, I'm the same way.
We all want more for a car thana market.
So does work.
This keeps our buyer fromfeeling that they're being
singled out or taken advantageof.
That's right.
There's what's called socialproof, there's power in numbers
(06:00):
and all of us feel this way.
So this is not a episode aboutempathy.
We talk about it over and overand over because it's the number
one neglected skill thatsalespeople active listening in
empathy I could probably putside by side.
But empathy, slowing down andabsorbing the buyer's fear.
Then we move into logic.
(06:20):
We talk to the heart.
Now we talk to the mind.
Right, logic.
How do we come up with thesetrade numbers anyway?
So in the old days it was amanager against a customer and
the salesperson played thisliaison thing.
It was a really crappy game.
80s and 90s, when I startedselling, it was part of that.
We did it and it was horrible.
(06:42):
I'm so glad we've advancedbeyond that.
So it's really not the managerthat decides anyway.
What decides what the car isworth.
The market, the market.
So we tell them the logic storyand we tell it in what
storytelling is important.
Again, this episode was notabout storytelling.
We'll get to that.
We've covered that a little bit.
(07:03):
We'll get to that again.
So that's why we ask you tofollow and like this podcast,
because you're going to getvaluable sales principles and,
by the way, life principles.
I think you can equate a lot ofthese things to just normal
life.
Empathy and logic can beequated to everything in life.
Absorb their feelings and thenspeak to their logical side.
(07:26):
It has to make sense to them.
It has to.
So we tell them how we price,how we came up with the number
on the market price, for the carcame from us doing a market
study.
Right, we call that thecomputer story.
If you're on our dealershipplaybook, you know the computer
story because we use it all thetime.
Okay, now, as a part of thatcomputer story, we have this
(07:48):
thing called real trade value,and that's what the focus of
today is about, and we've got along way to get to this right.
But we want you to know thatthis is, this doesn't stand on
an island by itself.
It's a part of thatresell-re-ask tool, it's a part
of helping the buyer feel better.
Right, real trade value whatdoes it mean?
(08:08):
Okay, so we know there's marketvalue, cash value.
Back in the 80s and 90s, youwould go to Kelly Blue Book and
they would have loan trade in,and retail Loan was cash value.
In other words, here's what thebank feel comfortable lending
you for this car, because if youdon't pay for it, they could
(08:31):
cash out of it.
Okay, okay, cash value, marketvalue, cash out of it.
Now, if you go to KBB, they callit instant cash offer.
It's still there, instant cashoffer.
It's amazing, though peopledon't realize when they go to KB
be they give you to what numberdo you want on your trade?
(08:54):
Well, how come I trade?
Have two values.
They say do you want theinstant cash value on your car
or do you want the trade-in,which also equates private
seller?
What Now, if it's worthtrade-in, how come KBB won't
write you a check for it?
Because it's not worth that.
So we have, throughout time.
(09:14):
There's a cash value indealership world because ACV,
actual cash value, market value.
Kbb calls it instant cash offer.
That's what the market studyreveals.
So what's the differencebetween Cash and trade value?
Aha, so KBB has on it.
(09:37):
You want the cash value, whatwe'll write a check for or what
we're gonna tell you?
You should tell dealers, youshould get for your car.
Now, why does it?
How do ways?
Kbb exists to drive traffic,that's right, so they could sell
information.
Why does any website exist?
They're not just hey, this is aconsumer Uh service.
We're gonna go ahead and spendmillions on making this website
for you, just for your benefit.
(09:57):
We just want you to be happy.
Now they have it there, sopeople come, so they can sell
from it, right, does that makesense?
Yeah, so they have to.
People gotta want to come, andlot of.
There's that old comic that has,um, you know, convenient lies,
and the line is really long andinconvenient truth, and the line
is really short.
(10:18):
People want to be lied to,right?
So tell me more.
Tell me it's worth more than itis.
Alright.
So we go there and we look atthis trade value.
What does trade value mean?
It's not cash value.
They won't want to check for it.
You know what it represents analgorithm of, maybe, what you
should get off of the retailprice of the car you're buying.
So, if you're buying a car andyou're trading this car, here's
(10:42):
what you should get on trade.
Now what if the dealer, though,has already discounted their
car there?
we go See there's where theproblem exists, that that trade
in value is assumed to be off alist price or a retail price,
maybe even more than a listprice, a retail price.
So if you go look at KBB forthe retail price on this car,
(11:04):
what would it be right?
So so we have this differencebetween cash value and trade
value.
Trade value is not what youshouldn't get in cash, but
possibly what you could get whenyou trade in your car and when
you factor in the cash valuePlus the discounts so you're
saying it's more than just myold car?
Grace Lupoi (11:21):
There's multiple things.
Take it to consider.
David Lowe (11:23):
That's it.
So when we talk about realtrade value, we want people to
know it's not just a cash value.
You got a factor in anydiscounts or what Incentives
you've been given, and if youadd those together you come up
with what we might call tradevalue.
Does that make?
Grace Lupoi (11:41):
sense.
David Lowe (11:41):
So real trade value, or helping our buyers see
they're getting more for the carthan they think, is not just
about the cash value.
We wanna add in any discountsthat we've given them up front
and incentives to buy.
That's what we might call tradevalue.
But it doesn't end there, doesit?
No?
So there's more.
When we're saying to the buyerthey want more for the trade,
(12:02):
they're probably getting morethan they think.
They're not just getting themarket value, they also got the
discount which might equaltogether like a blue book trade.
There we go.
Now we're in Indiana.
Not all states are this way,but most of them are.
Grace Lupoi (12:16):
There's a tax credit, that's right 7% of what
my trade in value is.
I get back.
David Lowe (12:22):
So if it's a $20,000 trade, you have a tax benefit
of what?
$1,400.
So really, your trade is 21-4with the tax credit.
In other words, you'd have tosell your car outright for 21-4
in order to equal the same as 20grand on trade in.
Does that make sense?
So you've got that cash valueplus the discounts, right?
(12:44):
That kind of equals what wemight call blue book, blue book
value.
And then we've got this taxsavings.
Is that all there is?
No, no See, if you trade inyour car, do you have to wash it
, change the tires, put brake?
No, if you resell the car,you're probably gonna wanna do
that or nobody's gonna wanna buyit.
That's right.
So you put your car online.
(13:05):
They're gonna tell you, bringit up to speed.
Or people are gonna come lookat it and they're not gonna buy
it.
Just like your house, you gottaget it ready for sale.
You don't sell it the wayyou're living in it.
You make it better than you'reliving in to sell it.
You paint the floorboards thatyou haven't thought about for a
long time, but when you look atthem through a seller's eye like
that needs to be all right.
So some of you who has a tradein.
(13:25):
If they were gonna sell it to afriend, what would they do?
They'd typically bring it up tostuff Tires, brakes, chips,
dents, scratches, interiorcleaning stuff like that.
So by trading the car and dothey save all that money?
I sure do.
So what if a salesman would say, grace, I get it.
I know how you feel.
(13:47):
I always want more from my carand the market says it's worth.
The cool thing is you know howwe came up with the market value
.
Of course we use our computerstory for that.
And, grace, you're getting morethan you think.
You're not just getting thatcash value, don't forget.
Online we gave you thatdiscount.
You put those together.
That's more like a blue booktrade.
(14:07):
And then, grace, by tradingyour car and you're saving
another blank percent on taxes.
If you add that to go, look howmuch you're getting.
You still get more than thatBecause by trading your car and
Grace, you don't have to gothrough the time, the hassle or
the expense to recondition yourcar.
The dealership now owns it.
You just give us the keys andwalk away right.
(14:29):
They take it, we spend two tofour cents a mile.
That's plus tires and brakesand big items.
Right, you add all those uptogether and you are what
Killing it on your trade.
So the next time that you hearI want more for my trade, I want
you to think you're gettingmore than you think.
And now you have got a way togo ahead and take buyers through
(14:49):
it.
Does that make?
Grace Lupoi (14:50):
sense it does.
David Lowe (14:51):
There's one last thing I should note that
manufacturers know the tradecycle of their buyers.
That's how they adjust productlaunches, the leasing terms that
they have.
Manufacturers are pretty smartright, they're on a cell car,
but they know how to market carsand they know how to build them
genius like that, and so to getmore people to trade their car
(15:14):
now they often offer incentives,and these incentives low
finance rates or rebates a lotof that is really designed to
make it valuable to trade now.
Save if you do this now.
In other words, it's okay ifyour trade is not what you hope
for, because you're also gettingthis incentive.
(15:37):
That's right.
So as salesmen, as mastersalesmen, we're not gonna focus
on one number.
We're gonna look at the what.
Grace Lupoi (15:43):
Whole package.
David Lowe (15:44):
The whole package and when it comes to the trade,
and we're not just gonna talkabout the cash value, we're
gonna talk about the discountsor the adding together the blue
book.
We're gonna talk about taxsavings, reconditioning savings,
and of course we have theincentives design to make it
easy for you to say you knowwhat it's that way I hope to get
from my car.
But when I add all this up, I'mkilling it on my trade.
(16:05):
Now, by the way, in thedealership playbook we call what
we just did the resell re-assright, A five step term, as most
comfortable negotiating tool onthe planet and we wanted to
give you kind of a free lookinto that today, because I know
so many salespeople are facingus and I feel bad that nobody's
showed you.
Here's the door and let me talkto my manager.
(16:27):
The worst things that you can do, by the way, I saw a lot of
when I first year selling cars.
I wasn't trained, so whensomebody said I want more for my
choice, let me go talk to myboss.
I didn't know and I sold carsand made money.
That doesn't mean I did itright or did it well when I
learned that it's my job toadjust how my buyer feels about
their trade number.
(16:47):
My sales went up, my incomewent up, my customers were
happier, everybody was happier,and that's what we're after.
Okay, so today's episode what'sit about?
You're gonna hear objections,should you be prepared.
Grace Lupoi (17:01):
Absolutely.
David Lowe (17:02):
Can you be prepared?
You ever.
Every objection's been heardbefore and if it's gonna happen,
don't you owe it to yourself toprepare.
So this prepare to win meansprepare for the common
objections.
If you were a football team,you'd be preparing for the Blitz
, right.
You'd be preparing for what youknow the defense is gonna do.
We're salespeople.
(17:23):
We know that buyers have priceobjections.
One of them is the trade, andnow you're more prepared than
you used to be, and that's abenefit of joining the Prepare
to Win podcast.
So like us and follow us, andI'm David Lowe The Automotive
Sales Coach, with Grace Lupoi,and we wanna thank you for being
with us.
We wanna tell you good sellingand seek excellence this week.
(17:43):
Be better today than you wereyesterday.
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