A successful negotiation to sell cars can only have one result: you and your client are both satisfied. If you don’t, you’ve failed as a sales professional since either you failed to close the sale or lost a repeat client. This doesn’t guarantee you an extensive, profitable sales career.
There are a lot of easy-to-follow techniques you can learn from online auto sales training courses and you can incorporate into your sales processes which will increase your client’s satisfaction while earning greater profits and closing more transactions. Does this sound like a car salesman’s wish?
Learn 8 of the best negotiation techniques you can apply to your next client.
1. Keep The Customer Busy When They’re Alone
The customer being left alone has to be rare; if necessary, you need to keep it short. In this event, it is essential to have something to keep them entertained.
In the past, it was a three-ring binder with many items in it. Still, today, it’s a tablet you can open to the dealership’s social pages where customers can review reviews, watch walkaround videos and check out customer interactions. The bottom line is to keep them busy and away from their mobile phones if feasible.
2. Present To Defend
The process of presenting the “first pencil” to a customer is not just looking at a list of numbers and hoping they choose one. The average first pencil will consist of price, trade down payment, and one form or another. If you’re not experienced, there’ll be four areas of loss gross or possibly sales.
When you present to defend, make sure that you don’t go over the figure on your worksheet. If you do, you’ll end up with a lengthy, drawn-out, and boring presentation. Your initial presentation should be short, quick, simple, and to the point, with no anxious chatter that distracts from the whole thing.
3. Short Term And Cash Are King
True professionals concentrate on turning a single customer into a repeat customer. The long-term success of a car business relies on customer retention and managing their trading cycle.
We often follow the path with the least resistance and go right to present eighty-four months of no down payment. This isn’t good for us but awful for the consumer.
You’ll be fortunate if you have equity within 48 months. So, the faster you can get down in the shortest time frame, the better it’ll be, which is the best option for everyone over the long term.
4. Refocus The Objection
The ability to direct the price of the client or trade concerns about the down payment is crucial to controlling and managing the negotiation.
Following your initial presentation of your first pencil, the customer can discuss the price of sale or value of trade, but we should concentrate on the down payment, increase gross, and stay within the budget.
The most important thing to do is acknowledge the concerns, then follow up with an either/or choice concerning the down amount. This lets you determine whether this is a genuine objection or a reflex reaction.
5. Focus On Customer Benefits
Everybody listens to their favorite radio station, WIIFM (What’s in It for me), and your clients aren’t any. Prepare to defend your numbers and be focused on convincing customers of the advantages they will enjoy.
If the concern is about money and explaining that the more money they deposit to finance it, the less they’ll have to pay and the less they pay on interest.
Not to mention that they’ll have more equity. If it’s about the payment and period, tell them it’s based upon an accelerated equity program, and it could be possible to extend the duration.
6. Use The Power Of Suggestion
Homer Simpson said, “There’s no such thing as stupid questions, just stupid people that ask questions.”
If you ask your auto customers what they’d like to pay for it is a simple method to obtain an absurd answer. Sure, they’ll be shady. I would do the same when we were in their shoes. Instead of asking questions with no answer, make sure to offer a number to help their thoughts.
Speak about things such as “How near to $39,995 did you think you were? Perhaps the figure of $39,500?” The goal of making numbers suggestions is to steer the conversation and then pull out their most important numbers so you can negotiate the differences.
7. Follow The Law Of Disappearing Discounts
When negotiating a car purchase, it is common to lower our prices in huge increments. This makes it difficult to conclude the deal and also extremely difficult to maintain gross. If you reduce the price by increments of $500 or $1,000, the buyer will think of big numbers too.
If you’re in the process of trying to negotiate price, trade, or payment, you should always begin with lower numbers and lower the amount for each subsequent drop. If you want to brush up your car sales training skills, you can update your skills with online courses.
For instance, if your initial price is $400, and the client isn’t willing to go for it, your following amount should go to $225, after which the third drop should be $120 until there’s no room.
8. Use Easy Bumps To Get The Customer
The key to avoiding bumps lies in timing, tone, inflection, and body language. If a customer calls you the number, you must reply promptly.
For instance, the customer may say, “We were thinking $425 per month.” Could it go up to? “Maybe $450.” For the car, do you genuinely want to drive? “We can do $460, but that’s the max.”
The customer typically gives you one bump, perhaps two if you’re skilled. A bump is always better than none. These little benefits will allow you to achieve win-win results, which is the ultimate aim of every negotiation technique.