The Five Basic Car Sales Closing Techniques

When you sell cars for a living one of the most common terms you will hear is closing the deal. Sometimes a successful car salesman or a sales manager might be called a strong closer or a good closer which means they are skilled at closing the deal with the customer. If you are determined to make the big money you will need to sharpen your car sales closing skills. Below you will find the auto sales closing methods and techniques that most of the other techniques have evolved from or they are variations of these car closes.

Whether you are new to the car business or have been selling for years it will help you to know these car sales closing techniques like the back of your hand. The better you know them the more you will use them and the better you will become.

Car Sales Closing – Show Me the Money

1. Assume They Are Buying: This is by far one of my favorite car sales closing methods. When you assume the sale is a done deal you naturally act and talk in a way that not only is conducive to completing the sale but the customer will pick up on you words and actions and follow along. When you move through the steps to the sale assuming they are going to buy a car at the end of the process the customer will either buy the car or they will object. If they object you then move on to overcoming their objections.

2. Ask Them to Buy: This may sound simple, but you would be surprised how often new sales people or less experienced car salesmen continue to talk about the vehicle without ever asking for the sale. However you must remember that you don’t stop asking after once or twice. Typically when you use this car sales closing technique the first thing that comes out of your customers mouth is an objection. Great, that means you are moving forward, see objections below.

3. Create Urgency: If you are in the car business, you know how important it is to sell them NOW because we all know about “Be Backs”. The car buyer has a tendency to say we are just looking or we are not in a hurry, but it is your job to get them sold NOW. Sometimes in order to accomplish your goal you need to create a sense of urgency in your customer for your car sales closing attempts to work. You want to make them believe they are going to miss out on something if they don’t buy now. An example might be the end of a sale or availability of the specific car they are interested in buying. A note of caution here: a little goes a long way and when you overdo the urgency combined with closing the sale you can come off as being pushy or as a high pressure salesman.

4. Make it Easy for Them to Say Yes: Listen to what they want and then make their wants and needs part of your car sales closing statements. Use their statements to close the deal. For example: You said wanted a red car with a sunroof and a payment under $400, right! or You said you needed a car that gets 30 miles to the gallon that seats five people that has remote entry and $5000 for your trade-in, right! Are you getting the idea now, you make it easy for them to buy a car when you have filled their needs and wants and use their words to make that point.

5. Go for the Gold – Objections: This is where the money is, it’s in the objections of your customer. When it comes to car sales closing it always comes down to objections. It is the customer’s way of saying: I am not convinced yet, I need more information or You didn’t build enough value in your product, dealership and yourself. It’s not that they don’t want to buy the car; it means that you have some work to do before they buy the car. Overcome their objections one at a time like a checklist and then close the car sale.

The car salesman will often use several of these car sales closing methods or a combination of the many other techniques that are designed to sell a car. It all comes down to closing the sale with your customer and they must be willing to buy the car because no matter what techniques you use to sell the customer they have to make the ultimate automobile buying decision.

Prepare Your Car For A Long Road Trip

Hope you know where you’re going…

Road trips, for most people, are a lot of fun. Whether you are going to a music festival, traveling to see relatives or just going for the sake of it, the thrill of the open road, a loud stereo and some friends can be irresistible.

What some people fail to do though, is prepare their vehicle properly for the trip. This can result in you getting lost, breaking down or falling out. Here are some key tips to make sure you are fully prepared for your journey.

Navigation

Before you leave the house you need to be sure you know where you are going. When you are going to be traveling for 100s of miles you don’t want to suddenly find out that you have been going the wrong way for the last 4 hours. If you can’t get hold of a sat nav, take a long look at a map and write down some accurate directions or take the map and someone that can read it with you.

Emergencies

While you may be a very good driver, there is no certainty when driving that you will be completely safe. Tell people where and when you are going, make sure you are completely sober and get a first aid kit for the car. Also, if anyone has a medical condition like diabetes, be sure they have their medication with them before you go.

Mechanics

This is a crucial thing to deal with before you leave. Assuming you have your MOT, your car should be safe from falling to bits, but it is best to check a few things. Check your oil is topped up, that you have water in your windscreen washers, that your tyres are pumped up and that your brakes work properly. If there is anything funny going on with your car at all, even any performance car parts you might have installed, it is best to get them checked by a garage, as on the open road you may find yourself miles from anywhere when your car suddenly conks out.

Entertainment

One final thing you need to make sure is just right with your car before you leave on a long trip, is your entertainment system. Your stereo needs to be working as several hours of silence can drive you bananas. Also, if you have a DVD player and screens which you are relying on to keep your kids amused, make sure that they work and that you have enough DVDs for the whole trip.

The Different Values of a Car Dealership

The appraised value of a dealership is not the same as its sale value.

An appraisal just tells the “fair market value” of a store and lets the chips fall where they may. It is a value based upon a mythical willing buyer and a mythical willing seller, with both assumed to be “reasonable.”

In preparing an appraisal for a dealership, the appraiser is required, for example, conform to published rules and guidelines:

The definition of market value according to the American Institute of Real Estate Appraisers’ Dictionary of Real Estate Appraisal is:

“The most probable price in cash, terms equivalent to cash, or other precisely revealed terms, for which the appraised property will sell in a competitive market under all conditions requisite to fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under duress.” American Institute of Real Estate Appraisers, the Dictionary of Real Estate Appraisal. (Chicago: American Institute of Real Estate Appraisers, 1984), 194 195.)

In Revenue Ruling 59-60, the Internal Revenue Service defines “fair market value” as follows:

… the price at which the business would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge and relevant facts.

In preparing a prospectus to sell a dealership, the only “rule” to which one must conform is: Do not lie.

A dealer is entitled to ask whatever he/she wants for a store and a buyer is entitled to pay whatever he/she wants so long as the buyer can demonstrate to the factory that the store would be profitable after the purchase. The latter task can be achieved in number of ways, such as paying cash for the real estate and leasing it back to the dealership below its fair market value.

The value placed on the store in an actual sale may take into account such things as a specific buyer’s:

(a) needs and desires for the particular brand being offered

(b) needs and desires for the particular location being offered

(c) abilities to cut costs (e.g., a group vs. single point buyer)

(d) extraordinary abilities to increase sales volumes in sales, service and parts

In appraising a dealership, the appraiser cannot base the appraisal upon the possibility the seller may find the “ideal” buyer for the store. A good example would be a recent dealership sale we helped structure. The store was appraised at 8 times earnings just six months before we sold it at 22 times earnings.* Although millions of dollars apart, both values were correct.

The 8 times earnings was a valid “appraised value” for an average sale and the 22 times earnings was a valid purchase price for this particular purchaser.

If an appraiser, however, were to value a store at the absolute highest value at which it could be sold, he or she would open him or herself up to a lawsuit

In summation, car dealers should think of the disparate values in terms of valuing a used vehicle. The vehicle may book at $10,000, but one may find just the right buyer who would pay $20,000.

Just as it would not be a sound business practice to forecast profits by assuming every vehicle will sell to “just the right buyer,” an appraiser cannot reasonably value a dealership by assuming it will sell to “just the right buyer,”

*Footnote: We never value dealerships by using “multiples.” The multiples referred to above are used because that is the way the final values worked-out and it provided an easy example of the drastic difference that could exist between an appraised value and a sale value.

For further information about valuing a dealership, see the following Ezine articles:

Investing in Car Dealerships – How to Value Them

Automobile Dealerships – Valuing Blue Sky

How to Sell Cars Online

In recent times, the auto industry in Australia has boomed at the tremendous pace and the concepts of online selling and purchasing of cars has too gained enough popularity. If we carefully analyze the current scenario, today the concept of online selling and buying automobiles as a business model in the auto industry has pulled the attention of many auto dealers from every parts of Australia.

The market research has found that these days more auto dealers are going online, and consumers are actually preferring to interact online early in the shopping experience. In fact, when it comes to car shopping, many customers are using the Web as a place to do research before heading to an actual dealership. Adding to this, many consumers are even reluctant to deal with auto dealers in person even during the early stages of the car-buying or selling experience. No doubt, the words like “online selling” or “online buying” has emerged as the latest buzzwords in the Australian auto industry and many individuals are using the Web as an ideal platform to sell their cars.

These days, one of the best ways to sell a car fast is on the internet. Yes, you got it right. With the help of internet, you can take advantage of millions of potential car buyers. Every day, thousands and thousands of cars are sold online. However, you need to understand that today selling a car online can result in much more money than trading, and so it can be beneficial if you spend a little bit of time and make use of online advertisements that can result in a higher sale price on used cars. Advertising a car online is one of the best methods of attracting potential buyers. Though, there are other multitudes of advertising methods, selling a car online through online advertisements is one of the fastest and best ways of reaching the vast target audience.

Nowadays, there are numerous automotive websites available in the internet that offer free car advertising services. These automotive websites act as online auto markets and has features specifically designed for selling cars. They facilitate the user to place the picture of their cars and list other information regarding the car. In fact, there are even many online auto websites that offer different online advertisement packages where you as a user can enter your car details, upload photos in a quick time, review them and post your listing.

An online advertisement can be considered a good option but will help you get a good return only if you list the proper information. You must note that listing of information in your ad always shows that you have paid attention to every detail. Therefore, the best thing that you can do is ensure you list information in online advertisements such as the body style, model, and year of your car, as well as the engine size, colour, and mileage. Apart from all this, always ensure to mention or indicate to the potential buyer how to contact you; by email or by phone. Never be afraid to mention the best price in your online ad. This can help car buyers know that you are keen to sell your car.

Online classified advertisements when used correctly can be a powerful selling platform. So make the best use of your online advertisement by following few above mentioned tips.

Cash For Clunkers Pros and Cons

I’ve done some research across the Internet and gathered a list of Pros and Cons regarding the “Cash For Clunkers” program. I made a list for the individual who’s considering buying a car through the program, and also a list for the “Collective Soul”, for us to consider the overall impact in the universe, as described in this article.

So far the Pros and Cons add up to this: Individual: 4-Pro, 6-Con. Collective Soul: 6-Pro, 12-Con.

INDIVIDUAL:

Pros

1. $4,500 + other incentives you may be able to save a lot of money on a new car purchase, if you push for more incentives besides just the $4,500.

2. Less Gas. You could save a lot of money at the pump.

3. Cut down on repair costs.

4. Environment – your driving will cause less pollution.

Cons

1. Insurance – it usually costs more to insure a new car.

2. New Debt – it is wise to go into more debt in your financial situation?

3. Wasted parts – your old car will be destroyed. It’s questionable whether or not some of the parts will be recycled.

4. Value added to your old clunker. The used car market may heat up due to decreased supply. It’s possible that your used car may be worth more than the voucher after the trickle-down of this Cash for Clunkers program.

5. More gas. You might be inclined to drive more knowing that your car gets better gas mileage.

6. Comfort Zone. You KNOW your old car. And you know what repairs you’ve done to it and what’s likely to go wrong.

FOR THE COLLECTIVE SOUL:

Pros

1. Increases sales at auto dealers.

2. Surge in new-car sales to consumers who would not otherwise purchase at this time. For the upper and middle income people with good enough credit to get a car loan, gives them a down payment.

3. Old vehicles are typically less fuel-efficient than their modern counterparts, so removing them from the road and replacing them with newer cars would likely decrease individual owners’ and the nation’s consumption of oil.

4. Old vehicles typically do not run as clean as new vehicles, so removing and replacing them on our roads would likely decrease vehicle exhaust emissions, lessening the impact on the environment.

5. Old vehicles were not held to the same crash and safety standards as new cars are held to and tend to be less safe in an accident. Replacing them with newer vehicles could lead to fewer injuries and fatalities in automobile accidents.

6. Automakers are struggling right now, especially domestic automakers. Providing a financial incentive to buy new cars would likely lead to increased car sales, which would generate revenue for the automakers and help them weather the economic downturn, while stimulating the economy at the same time.

Cons

1. Artificial, unsustainable boom in auto sales.

2. Crushing those older running autos makes those parts and vehicles harder to get, and consequently more expensive.

3. Many companies build parts and upgrades for older vehicles. A reduced supply of older vehicles would adversely affect their sales.

4. The automotive restoration and customization industry relies on old cars as the basis of their products. A reduced supply of older vehicles would adversely affect their sales.

5. For lower income people, makes it harder to find and maintain an older vehicle.

6. Convincing low income people, those who drive “clunkers”, to go out and finance a new car when we are still in the midst of the consequences of easy credit in the housing market.

7. Drop in vehicle donations to charities. Some charities that rely on vehicle donations for funding say they’re receiving fewer cars and trucks, because donors change their minds and decide to trade the vehicles in on the Cash for Clunkers program.

8. Some older vehicles actually get better gas mileage than some newer ones. Replacing them would then negate any benefit to the environment or the U.S.’ oil consumption problem.

9. Encouraging consumers to scrap working vehicles could shorten the lives of cars and encourage the production of new cars, which would have a larger adverse affect on the environment that keeping the older car.

10. This proposal would not necessarily benefit the automakers that are in the worst financial shape, as there is no guarantee that consumers would use their incentive to purchase a vehicle from one of those manufacturers and not another company.

11. The program is not restricted to AMERICANS, and not restricted to AMERICAN made vehicles, but it is coming from AMERICAN taxpayer money.

12. It is costing more than $4,500 per trade-in. It is costing approximately $6,000 per vehicle, when factoring in the cost of the extra government staffing, office space rent, equipment, employees, web development, printing of forms, etc.

http://en.wikipedia.org/wiki/Car_Allowance_Rebate_System