Re-evaluating the Appraisal Phase
Looking for ways to find more inventory, or ways to get more customers through the door? This non-traditional road to sale for independent dealers may be just what you need! NextGear Capital recently hosted a webinar for independent dealers featuring Joe Lescota, a veteran of more than 25 years in the automotive industry, as the NIADA Director of Dealer Development. Through Lescota’s suggested detour in the road to sale, your dealership could see more business, more trade-ins and greater net-profit.
When evaluating the traditional road to a sale, Lescota found that most of the issues being faced by independent dealers are occurring in the appraisal step.
1. Meeting and Greeting
2. Needs Determination
4. Feature Presentation
5. Demo Drive
6. Trial Close
Make Appraisal Step-Two
So how do dealers get past this road block? Consider moving the appraisal step up to the second step in your selling process! Once a representative gathers information about the potential trade-in from the consumer, this information should be handed off to a manager to determine the value. This will allow the manager more time to gather better numbers for the appraisal. The manager can spend more time investigating and strategizing during the appraisal process, while the sales rep continues through the remaining steps in the sale – selection, demo drive, etc.
Understand the Appraisal You Present
Independent dealers also need to understand and adapt to today’s consumer. Most customers who have a trade, arrive with a value already in mind. Today’s consumer already has a pretty good idea of what the vehicle is worth through sites like AutoTrader and craigslist. Lescota says a typical used car dealer spends 18 hours online.
Make sure you do not lose your credibility with a customer because your sales rep cannot explain the process and reasons behind the trade-in price they are presenting. There should be no mystery as to why the number is what it is. In today’s market, transparency is key. Encourage potential buyers to do business with your dealership. Ultimately, providing information and making the trade process easy could make the customer more likely to commit and buy!