Are Your Car Deals Dying in the Trade Walk?
Are Your Car Deals Dying in the Trade Walk?
Let’s be honest. Most of your salespeople aren’t even doing a proper Trade Walk, are they? They’re running out to the customer’s vehicle alone and getting the VIN and mileage, right? Guess what? Your deals are dying in the Trade Walk.
Conducting a proper Trade Walk – one where the customer participates – accomplishes four important goals:
Gains important information
Sets up F&I for success
Reduces the customer’s perceived value of their vehicle
Increases the customer’s desire to own your vehicle
Let’s quickly dive into these four goals.
Gains Important Information
With a mix of observation and questioning, your salespeople will discover common ground (by observing the contents of the trunk or behind the last row; the stickers on the bumper or back window; even a well-worn tow ball) and make the Vehicle Selection and Write-Up steps go more smoothly.
The questions they should be asking are basic, but critical; and these should be asked in a conversational manner while inspecting the customer’s trade. Simple questions like “What is this vehicle missing that is a must-have on your next vehicle?” and “How much were you looking to get for it?” will make closing the deal easier – and without overpaying for their trade.
Sets Up F&I for Success
If you’re interested in building your backend grosses, the Trade Walk presents a great opportunity for your salespeople to plant important seeds.
Asking questions like “Have you ever lost a key?” or “Did you happen to buy the extended warranty when you purchased this vehicle?” and then following these questions with brief, almost nonchalant explanations of the benefits of key loss insurance or extended warranties can build the customers desire to fully review these options with your F&I managers.
Reduces the Customer’s Perceived Value of their Vehicle
Let’s be clear: the Trade Walk should really be called the Trade Devaluation because with this name your salespeople will better understand its primary goal.
Every customer has a number in their mind of what they expect to get for their trade – they also know what’s wrong with their vehicle, and why it’s probably not worth the number they’re considering. By conducting a proper Trade Walk, your salespeople can chip away at that number; devaluing the customer’s trade while they conduct a semi-silent walkaround.
Touching the dents and dings while asking questions like “Did you get an estimate on repairing these/this dents/dings/wheel damage?” is one of the most tried and true methods for reducing the customer’s expected trade-in value.
Increases the Customer’s Desire to Own your Vehicle
Everything your salesperson does during a proper Trade Walk can remind the customer of exactly why they’re here: they want/need a new vehicle, and the sooner they can get out of this one, the better.
The steps they take and the questions they ask that devalue the trade also increase the customer’s desire to own your vehicle. Simple questions like these can accelerate a customer’s desire to replace their current vehicle:
“Has anyone ever told you the tires were wearing unevenly?”
“What’s the last major repair you’ve had done on the vehicle?”
“Are there any current problems with the vehicle?”
When to Conduct the Trade Walk
Your store’s road-to-the-sale (RTTS) is likely different than mine, and it probably works for your team (if you’re enforcing it, of course). Your team should follow your RTTS, unless you’re putting the Trade Walk after the Demo Drive, that is.
Conducting the Trade Walk after the Demo Drive is likely how most of you were taught when you started in the business. In the old days, managers didn’t want to appraise a customer’s trade until everyone had agreed on the numbers for the new vehicle. That made sense back then.
Today, it’s critical that the Trade Walk occur at some point before the Demo Drive for three important reasons:
- The contrast between the customer’s trade and your vehicle could be stark. If this comparison is made after the Demo Drive, they could become defensive about the condition of their vehicle instead of elated at the thought of owning yours.
- The more time that passes between the end of the Demo Drive and the customer seeing numbers, the greater chance they’ll lose their New Car Fever.
- If after the Demo Drive, they decide your vehicle is not for them, they can leave before you ever get a chance to see their trade. By doing the Trade Walk before the Demo Drive, they’ll at least have to come inside to retrieve their keys and see the trade offer, giving your team an opportunity for additional Needs Analysis to help them find their perfect vehicle.
The Road-to-the-Sale
While many deals can still be won in the first third of the road-to-the-sale, in today’s market, the biggest difference between deal and no deal often comes down to Trade Walk or no Trade Walk.
Good Selling!
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