Put Your Hand Down!

Executive Trainer - Shawn Foster

Remember that one kid in class who wanted to answer every question the teacher asked…

Even if they didn’t know the correct answer?

is in the lanes buying cars and at the dealership appraising

them.

Today, at auctions around the country, that

same personality

Why do we think, just because someone is bidding on a car in the same lane we’re standing in, that makes them the authority on its

value?

Bidding in the lane becomes a

I must win this bid!

Time and time again…

to who has the strongest arm

and the biggest ego.

contest

Some vehicles will get sold through proper marketing,

uneducated customers, and even a stroke of pure luck,

but

and will end up back at the sale in the late spring, now aged and well below book

values.

Thousands of units are bought each year and taken

back to the dealership only to find out that they

are

to sell to customers.

impossiblemany will never get sold

? When is the last time you did a Credit Bureau Analysis in your store to understand the demographics of the customers you are selling?

How often do you sit with your desk manager to make sure they know the programs of the finance companies that are loaning your customers money?

?

Most dealers will find that they do a good job delivering people with 650+ credit scores, but once they get to the low 600’s and below, their actual delivery percentages

drop dramatically.

+ 650 -Credit Score

Example:If 30% of your total pulls were below 600 credit, yet only 5% of your deliveries had a similar score, you have significant opportunity to increase your business without spending any more money.

By taking all of the credit pulls in a given month from every customer who gave you a credit application, you can determine what percentage of leads make up any specific credit demographic.

Industry benchmarks are 28% across the board for all credit tiers and most dealers are shocked to find (in the sub 600 credit scores) they are well benchmark.

Below

A Sales Process Problem

If you are one of those dealers, you most likely

have:

OR

An Inventory Problem

It’s most likely that your vehicles have aged because they do not fit the

finance sources for your customers in this credit tier.

If the problem is inventory…

1.) Take an inventory of all the finance companies you use. 2.) Identify common vehicle traits of these particular programs.

By understanding what they will lend your customers and the parameters that they use, you’ll have a significant edge over the “other guys” in the auction lane and you will know exactly

when to

Put Your Hand Down!

Learn the programs

Use discipline while stocking up+

_____________Reap great rewards this coming selling season

The hardest part about buying vehicles for your customers is:Understanding Your Finance Programs

If they aren’t using the exact same finance companies as you and selling to the exact same

customers, what you can and should spend has no correlation to what they will pay.

Stop watching other dealers to see what they will pay for a

unit.