What’s the worst thing somebody can say when you ask them for something? “No” right? If you’d like to source more cars from your current customers, there’s a perfect time and a perfect question to ask them.
Survey Says? Not Enough Dealers Ask This Question
Our friends at DealerRater and Cars.com asked 21,000 consumers “The last time you took your vehicle in for service, did anyone from the dealership discuss the trade-in value of your vehicle with you?”.
Sixty percent of those people replied “No”. There it is again…that aroma of opportunity.
With new car inventory piling up at most dealerships, cars getting more expensive, and interest rates being high, more customers are looking for affordable used vehicles that are just a few years old. Unfortunately those are becoming a lot harder to find given the decline in lease returns (check out “The Impending CPO Drought” for that story).
Ask Your Service Customers This Question!
What to do? Ask everyone that’s coming in for service, “Can we show you what your car is worth right now?”. What’s the worst they can say? No?
Even better, just go ahead and print out their trade-in market report, staple it to the receipt, and show it to them to start that conversation. You will source more vehicles each month.
Frequently Asked Questions
What is the best time to ask customers about their vehicle’s trade-in value?
The ideal time to discuss trade-in value with customers is during their service visits. This is when they are already at the dealership and have the opportunity to consider their options.
Why is it important to talk about trade-in values during service visits?
Discussing trade-in values during service visits can open up opportunities for sourcing vehicles. Many customers are not approached with this topic, as evidenced by a survey from DealerRater and Cars.com where 60% of respondents said the trade-in value was not discussed with them.
How should dealerships approach the conversation about trade-in values?
Dealerships should ask every customer coming in for service if they’d like to see what their car is worth. The conversation can be initiated by simply asking, “Would you like to know your car’s current market value?”
What should a dealership do if a customer says “No” to discussing their trade-in value?
If a customer declines, it’s important to respect their decision. However, providing them with a printed trade-in market report attached to their service receipt can gently keep the conversation open for future consideration.
What are the benefits of providing a trade-in market report to customers?
Offering a trade-in market report gives customers concrete information about their vehicle’s value, which could prompt them to consider trading in. This proactive step can lead to more vehicle acquisitions each month, meeting the growing demand for affordable used cars.
How does the current market situation affect the demand for trade-ins?
With new car inventory increasing, rising vehicle prices, and high interest rates, there is a heightened demand for used cars. Discussing trade-ins can help dealerships meet this demand and benefit both the customer and the dealership.
