Gardner begins the conversation by discussing the ways car dealers can obtain valuable late-model trades. He says that the Joe Verde Group has been in frequent discussions with their clients on this very issue. Right now, there are multiple ways to obtain inventory. However, Gardner says the best vehicles are the ones that dealers trade for. Joe Verde calls vehicles that are late models, had only one owner, and maintained very well, valuable trade-ins that are easy to sell.
Customer trade-in values are hitting all-time highs. Gardner says now is the time for car dealers to go the extra mile to earn customer trade-ins. Car dealers primarily should look for late models, low-mileage SUVs, and low-mileage pickup trucks. Gardner says the story behind the customer trade-in is so valuable in selling the vehicle. When it comes to used vehicles, customers are very interested to hear all the details concerning the vehicle’s history.
“That type of story gives a salesperson confidence,” said Gardner, adding that customer trade-ins are being overlooked due to concentration on auctions. “And the gross is typically higher on those types of vehicles.”
Gardner believes that car dealers are missing a tremendous opportunity to obtain customer trade-ins from previous customers. Car dealerships that have already won a customer’s business have the best chance of earning the customer trade-in if they continue to pursue a solid relationship with the individual. Unfortunately, many car dealerships make the mistake of letting car buyers walk out the door without keeping in touch with them. Gardner shares a scary statistic that 90% of salespeople don’t stay in contact with their customers long term. The follow-up is the most crucial aspect of keeping customers engaged with the car dealership.
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