Kelly’s Korner: Trade interview
Q. What is the best way to handle the trade interview with a customer?
A. The best time to conduct the trade interview is after the deal is established and before the second round of negotiations with the sales manager. This is the sales representative’s opportunity to devalue the trade by inquiring about every aspect of the vehicle.
The trade interview sheet (appraisal form) should contain separate sections for (1) customer information, (2) complete vehicle description, including all optional equipment, (3) service records, (4) service agreements, and (5) aftermarket products.
The typical customer enters trade negotiations believing that the vehicle is worth full retail book value, when in reality the trade either requires heavy reconditioning or does not even warrant reconditioning and is immediately placed for wholesale.
A professional sales representative can use vocal cues to devalue the customer’s trade vehicle without appearing confrontational. A well placed “o-o-o-h” or “u-m-m-m” following the customer’s negative answer to a trade question will effectively communicate the message.
2) Fill in the customer information section.
3) Go out to the trade-in with the customer.
4) Walk around the vehicle and note any visible body damage. Verify the tire tread depth with a penny. If you can see Lincoln’s head, the tread is too worn. Check the front windshield for rock damage. Use a quarter to measure the spider lines. If the spider lines exceed the diameter of the quarter, the windshield needs replacing.
5) Do a hands-on inspection of the vehicle equipment and check it off on the form.
6) If the trade is a motorized unit, drive it around the block with the customer. Check the alignment and listen for noises when the vehicle shifts. Check the air conditioning and heating. Turn on the radio.
7) Ask questions to plant seeds of doubt: Have you had that checked? How long have you noticed that?
8) Note the vehicle identification number and record the odometer mileage.
9) Return to your workstation with the customer.
10) Ask the customer all the bonus questions: Are these the true miles? When can we get a copy of all the service records? Is the title branded or salvaged? When did you last replace the tires? When the vehicle was new to you did you purchase a service agreement? Did you have paint guard and fiber guard applied? Does the vehicle have a security system? If so how does it work?
Typically, a sales representative does not book out the vehicle in front of the customer, nor take the customer and the vehicle to the used inventory manager. Instead, leave the customer at your workstation and deliver the vehicle to the used inventory department. Return to the manager on duty with a completed customer statement that addresses every question and leaves nothing blank. Accuracy counts when you record customer responses since lenders will verify the information. The used inventory manager will have time to appraise the vehicle and notify the sales manager of the value. With a complete and accurate customer statement, the sales desk will have all the tools required to secure your sale and maintain a higher gross profit.
Take time now to evaluate your dealership’s trade interview sheet. Does it need some reconditioning of its own? Or could it use a complete overhaul? Do you take all of the steps necessary to conduct a successful trade interview? Remember that when it comes to trade appraisal, the more you do the more you make!
Kelly’s Korner, March 2003, p. 26.