Objections Flashcards
Hi, Welcome…
…to Curry Honda. What brings you in today? Just doing a bit of looking and shopping? Perfect. Are you mostly looking for product information, pricing info, or a little bit of both?
I owe ($)!
Your payoff has nothing to do with your car’s value. If you owed zero, would you want zero? Or course you wouldn’t, you would want what it was worth. You car is worth ($). See I suggest you pay your car off. (I cant). Well then I suggest you pay it down…the difference between what you owe, and what its worth .
See (name), what you owe on your vehicle has nothing to do with the value of it. Let me suggest this: you pay the car off in full right now. See if you owed $10 million, and your car was worth $10,000, you’d pay the car off. If you owed $200,000 on your house, and you could only sell it for 180, then you’d sell it for 180, and you’d move on. You don’t stay in that house. Your car will never be worth more money than its worth right now. So my suggestion is that you pay your car off. I’ll pay you ($) for the car, and we’ll use your car as equity.
Well pay it off and you wont owe anything/ Excellent, then pay it off.
Pay off car summary close
You’ll take delivery now, assuming we pay off your car, pay the lien off, free you up from making a payment this month. We are going to use the remainder of money left over to reduce the price of the new car, we’ll provide you with preferred financing, with only ($) cash, and we keep your payments at ($). We also get you the (accessory/feature), we get you a full tank of gas, and no payment for 45 days.
Payment/Cash COMPLAINT: wont make them all
You wont make them all anyway. You said they payments are too high. So if they’re too high, you wont be able to make them all anyway.
No money down close
You will own, assuming ABC arranges financing with no money down. You payments will be agreeable. I need your ok here, here, and here. Write a check for the taxes, title and fees, and I’ll get you approved with no money down.
Reduce balance of new car close
You will own now, and take delivery, assuming we pay off the balance of your car, using rebates and discounts. Your funds will be used to reduce the balance of the new car.
Handling the assistant buyer
You must be here for a reason, if only to protect (buyer’s name) from some shady car person.
Wow, I never thought of that! No wonder Sally brought you along!
Knowing how this car is equipped, and knowing what your brother wants in a car, and knowing what your brother can afford, and knowing your brother…what advice would you give him about the fairness of the deal?
Will you be helping with the down payment, the monthly payment, the paperwork, or did you want to help with all three? Or did you want us to work this out so that the car is affordable without having to get you involved?
Payment/Cash COMPLAINT: you knew would be high
You knew that before you got here. Before I showed you a number, you knew the price was too high and the payments would be too high. Buying a new car, your payments always go up! Buying this vehicle is going to end up causing you to have a higher payment, and you knew it before you got here. So I need your ok right here, its no big deal.
I’m going to check my inventory, for what we have now, and what we have coming in.
You don’t actually have to buy something today do you?
Fantastic, that gives us some flexibility then. Obviously though, if we find you the right car and you get a good deal on it, I certainly wouldn’t stop you from doing something today either. Fair enough?
More Down: you control 2 parts
You control two parts … one is cash down and the other is terms. We can extend the term, you can add some cash… You can do one, or a combination of both to reduce your payment. How would you like to handle it? Extend the term, put more cash down, or both?
Well I just wanted to get an idea to think about, because it’s a big decision
Yes it certainly is, and I can appreciate your wanting to think about it, but let me ask you this; is there a number you would do it for right now?
Change mind?
Would there be any reason you would change your mind about this decision?
More Down: 6 things happen
When it comes to cash, you and I are just alike, we want to hang on to it. We want to keep it in our stock portfolios, money market, bank account, in the mattress, wherever we have to keep it. I get that. But please recognize this.
When you increase your initial investment in a vehicle. 6 great things happen for you: number 1, you lower the balance to finance, which is a driver of savings. The lower the balance to finance, the lower your monthly car note. Ok, unless I misread you terribly, you are not the type of guy who wants to brag about having the highest car payment in the neighborhood, correct. Good. 3. When you lower the balance to finance, you also lower your finance charges. Ok. That saves you money, which is what you told me you wanted to accomplish today. 4, you have the option that most people don’t have, which is to shorten the term. When you shorten the term, guess what, you save money again because there are fewer finance charges with a shorter term. And 6, when you shorten the term, youbuild equity faster, pay it off sooner, which gives you the freedom to sell it or trade it sooner, which most people do after 3 years because something cooler, shinier, or more technologically advanced comes out. A lot of people don’t get the chance to take advantage of these benefits because they don’t put enough money down.
Delivery Close
When do you want to take delivery of your new vehicle? Right away, do you want to wait until I get it clean and polished?
I need to talk to my wife.
What if she says no? Would your wife say no to the car or to the money? If you had to guess? How would you justify the price/car to her?
Ok, so does your spouse agree with your current transportation and the cost of it? See if nothing changes, except for the fact that your situation improves, would it be necessary to get her approval? Wouldn’t they approve of it if nothing changes except for the fact that you get the car you want?
Price: go older
Well how about we consider a car like this, with low miles, a warranty, a little older and save you 500/1000 dollars? It’ll reduce your payment by 12, maybe 15 dollars a month, or would you rather go with the car you have now, and pay a little extra per month?
Price: within
We’re within ($) of you enjoying your new car. In comparison to the price of this vehicle and the length of time you will own it, were talking about miniscule amounts of money, ($).
I can do better if I sell it myself
We’ll pay you ($) for your car the way it is, or you can put it on craigslist and ask ($), and benefit, what ($)? This is also referred to as sell it yourself. We’ll buy the car for ($), you can sell it for ($). You sell it for ($), you’re up ($). Just remember, you ask ($) and you take ($), you’ll still be up, what ($). Now you have to go out and advertise your car. It’ll run you $30 per week/ for 12 weeks, that’s almost ($). Not your down to what, ($)? Then you have ($) in reconditioning with no tax advantage. Don’t forget the car payment you’ll still be making on it, and miles you’ll be putting on it, depreciating it further. You’re car is never going to be worth more than it is today. So really, you’ll save only ($) by selling yourself. That makes no sense at all.
Handling the Rate Question
The rate we use to calculate the payment is a mid range rate because we have not yet pulled your credit. Let me explain how the rate works. First of we use a number of lenders, about 40. Once we get a credit statement from you, we submit it to the bank who we think will give you the best set of terms. In practical application, this is how it works. Nobody, and I mean nobody has to use one of our lenders. Its purely voluntary. However, over 85% of the people who buy cars here each month choose to use one of our lenders. Now what does that tell you about our ability to get a good rate?
Excellent. So lets go ahead and start the credit application right now.
Before getting a pencil: price/down
The price of the (vehicle) is ($). As you know, most lenders suggest 20% cash down. So, we should be looking at about ($) can you handle that okay?
How close can you get to ($)?
Payment/Cash COMPLAINT: I agree
The payments are too high: I’m with you (name). I agree with you, I completely understand. That’s exactly the reason you should own this vehicle and start enjoying it right now. Because the payments are not going to get less, they’re only going to get higher. So what the payments are a little high. I need your signature here, here, and here.
Price -Negative equity: refinance
The new car is ($), we’re going to buy your car for ($). We’re going to finance ($). You’re paying ($) now on the old car. We’re going to reduce your payments to ($) a month. That’s a ($) savings per month, with no cash down. All I need is the title to your car. (I owe X amount on the car. I cant pay it off) Great, then what do you want to do? Wantrefinance it? To refinance ($), that’ll be ($) a month. The car is only ($) per month. I can put these together, or I can keep them separate.
Payment/Cash COMPLAINT: isolate objection
The fact that you say that means that you’re a normal human being, almost everyone tell us that. The payment’s always too high. We get it, we understand, it’s not a problem. Other than the payment though, nothing else would stop you from driving that (vehicle) home today. Correct?
I am going to still shop around after this.
That’s ok, most smart buyers do. The process of shopping is to eliminate the people who you don’t want to work with and vehicles you wouldn’t consider, right?
Out of curiosity, what was it about us that made you choose us first?
Our bank doesn’t need any money down
That’s good, but just in case they may need something, how close can you get to ($)?
I understand, and that’s not a problem. May I make a recommendation that may save you some time and
trouble?…
NO
That’s fine, take your time. I’m here if you need me. What are you looking for today? That way, I can just point you in the right direction.
Objection: Maybe I should wait to see if prices go down
That’s fair. Sometimes they go down, sometimes they stay the same, sometimes they go up. The one thing I know for sure, is if you have a car that you’re considering selling, I know for a fact what’s going to happen to its value. It will depreciate. Because we value price the cars here, and we take into consideration all those things, you’re guaranteed to get a fair deal every time.
I’m not buying a car today
That is totally fine. I am just happy you decided to put our brand on your shopping list. We will make today just an info day. I will help you answer any questions you may have. May I make a recommendation that may save you some time and trouble?
Invoice
Tell you what I’ll do sir, I’ll sell you the car for invoice. The invoice on the car is ($). We sell you the car for invoice. At that number, we lose money, because we have a facility to run here. The car is ($). Add $2500 for me. The car, you buy it at invoice. Me, I’m not free.
The amount paid to the manufacturer is ($). Facility expense is $450 per car, advertising is $340, finance charges are $300, commissions for sales and managers is $560, attendants, gas supplies, fixing cars is $220, total cost to the vehicle is ($). That is our break even number. I’m sorry, that’s our number, our cost before hold back. Our hold back is $500, we get that from the manufacturer. Out break even on the car is ($). We’d like a profit to at least the state taxes.
Sir, the government’s going to make 7% on the car, and they’re not even in the car business. We deserve to make at least that much. We service the car, we get it ready, we back it up. We got it here for you. We’ll finance it for you. We’ll service it, we’ll take care of it. We’ll get it ready for you. We’ll offer you a free oil change once a year, and a free loaner when you need one. And we want at least what the state makes.
Ok perfect, so you and I can work together then right?
Tell me, are you looking for something similar to what you’re driving now, or something completely different? Or, did you come in today for a specific vehicle?
Oh this is not right. I appreciate your time, and can I get a business card?
Sure, no problem, but can I ask you a question? What interested you the most about this vehicle, the price or the make and model?
Great, before you leave I would like to show you a couple of other vehicles that have (address objection) that we should be able to get you a great deal on.
I only have 15 minutes.
Sure not a problem. Tell me, what did you want to get accomplished today?
Great! Let me give you some info and set an appointment to have you come back soon.
Shop Walk (optional)
So while management is appraising your vehicle and working out a great fair deal for you, I want to give you a tour of our facilities.
This is where you’ll get your first oil change… Here’s my distinct competitive advantage…
So who will you be insuring your new vehicle with? Fantastic, we do lots of business with them If anything were to happen, you can be sure our body shop can handle it. I’ll call and get coverage transferred so you can be insured before you leave.
No money down close
So John will own (car) assuming Honda arranges financing with no money down, payments will be agreeable, I need your ok here, here, and here. And I’ll get you approved with no cash down.
Oh really, to where you live and work?….build rapport…so for you, if you could find the right car, and get a good deal with a local dealer that you’re close to, for service and so forth, that would be ideal for you?
NO
So in your mind, you want to shop and make sure you get the best possible deal, but the reason why you came here first is because it made sense seeing as we’re the closest?
If all things were equal, so to speak, concerning the vehicle and the pricing, then I assume it would make sense to still do business locally, again out of convenience?
Before getting a pencil: close
So folks, what you’re telling me then is, if we can take your car in trade, ($) cash down, and keep your payments at ($) a month, you’ll buy the car and drive it home now, right? Okay, go ahead and acknowledge it here and I’ll present your offer.
No payments close
So (name), you will owe now, assuming we pay your present vehicle off, saving you from making any present payment due, also, no payment on the new car for this month, (next month), and no payments until (month).
Price: base
Sir, we’re already at ($) a month. The car with no options is ($) per month. You add the (feature, feature, feature), and that brings you to where we are now. So let take them off. Lets remove the equipment, and the payments will be ($) than where you want to be at. Or we can pay cash for the equipment, and the payments will be ($) less than you want. Or we keep the equipment, and you keep your cash, and we pay the extra money. You deserve it. Lets do it.
Need to think: Ben Franklin
Sir, I understand how hard it is to make a decision. I face the same thing when I buy something, big or small. It has been said, that Ben Franklin, one of the founding fathers of our nation, when faced with a big decision, would write down the pros and the cons of that decision on paper. So he could get a true evaluation, an analytical, logical evaluation of what the right thing to do is.
Price: stoplight
Sir the last thing you want to do is be at another stoplight in your life, and see exactly what you should be driving sitting next to you, with the perfect person sitting in the passenger seat, when you should be in that same car. You ever pulled up to a stoplight and looked over and said …God, that’s the car I should be in�? well you know what, its been long enough for you.
Are you mostly looking for product information, pricing info, or a little bit of both?
Pricing
Perfect. Well here we use value pricing. Are you familiar with value pricing as compared to one price?
Great, let me share with you the difference. The one price store has a fixed price, that’s really not flexible. The good news is, everybody pays the exact same price. Bad news is, if the market changes and the management is not flexible, you may end up over paying.
Our pricing policy is simple. We assess each individual vehicle on a number of variables. For example, what the supply and demand of the vehicle is, the time in inventory, the condition, the options and equipment on it, and of course the incentives from the manufacturer. So we actually structure the pricing based on the market, and our pricing is designed to be fair and flexible, so that you get a good deal, every time. Fair enough?
Before getting a pencil: trade
Perfect, when I was in the sales office, I took a peek in our trade file, and I noticed the last time we took in a car similar to yours, it was stocked in for ($). Is that what you had in mind? Write it down as you ask it.
No worries, management hasn’t even finished appraising your car yet. That was the last one we took in, and I’m sure it wasn’t as nice as yours, but I was just curious as to whether that was what you felt yours was worth, just for my own information.
Don’t worry about that right now, once your car has been appraised, I’m sure you’ll be happy with the numbers
If my pricing were similar, or even a little bit higher, as long as it was not unreasonable, wouldn’t you
rather still buy from me?
NO
Out of curiosity, why do you say that?
Absolutely, I wouldn’t want you to pay too much either. I’m not asking you to pay anymore than what’s fair. I’m asking you, if I was worth it, wouldn’t you want to?
Story
Its ok, I understand. I hope you can appreciate why I felt like I had to ask. What you’re asking me to do, is something outside my ability to authorize. Lets you and I propose it to management, and we’ll see whether or not management can honor this number that you’re looking for.
Trying to negotiate on price
Our dealership doesn’t do all that back and forth stuff, because they just try to give the best deal right up front. That’s what our customers have asked for, and we listened. What is it that you think is wrong with these numbers?
Terry, I know that you’re used to having to negotiate every time you buy a car, but that’s why I told you at the beginning that we’d give you the bottom line up front.
You don’t seem happy now that we did it your way? I sometimes wish my boss would actually leave some negotiating room, because people seem to prefer negotiating, even though they say they don’t. Let me ask you this Terry, if I had come out $1,000 higher, and made you beat me down that thousand, could I maybe have had a better chance of earning your business?
Before getting a pencil: payment
Okay (name), based on these figures; you should be looking at a payment around ($). Can you handle that okay?
Well you could handle about ($) couldn’t you?
Tom, Jane, let me ask you this; how close to ($) could you come, and still buy the car right now? (Write it down)
Money: math
Ok, the payment is nothing more than basic math. That payment includes the balance to finance, which is all the standard features on the (vehicles) and all the options you said you had to have, freight, getting the vehicle from Flatrock, Michigan, and all the governmental mandated safety and emission features. And you have negative equity, so part of the old vehicle is in there too. Now what comes off of it? Well ($) our discount to you, ($) Honda rebate and your ($) cash down. You credit drives the interest rate. And then the last part is the ter
Savings Plan Close
Ok, tell you what. My brother showed me this a while back, and I had never looked at it this way before. But the numbers are what the numbers are. He showed me the big picture. What we’re looking at now is a ($-$) payment, and you don’t want to pay that. I don’t blame you! But if we look at the big picture, what’s going to take place over the next 5 years, you may find it to be a bit more palatable.
I’m gonna use ($) because the math is easier, at 60 months. Everyone knows a vehicle depreciates, that’s not news to anybody. But what most people don’t realize is that when you purchase a vehicle, it also creates a savings opportunity.
Now, where does the saving opportunity come in? If you’ve ever gone to a financial planner, or saw one on tv or ever read a book on financial planning, anybody worth their salt who’s trying to help you save money tells you to move yourself up the food chain, pay yourself first. So what a good financial planner will tell you is this: pay your mortgage, pa your rent, buy your groceries, but then write the next check to yourself and put it in a savings account. Because what most people who don’t save very well do, is they spend their money ,hoping to save a little bit at the end of the month. But guess what…there’s too much month, and not enough money! But your car note has a tremendous feature that most people don’t see. Your msrp, which you’re not even coming close to paying is ($). Your vehicle, when you get finished paying for it, is not going to be worthless. Its going to have a value. Now what that value is going to be is sometimes a mystery. But the general rule of thumb, is that your car will be worth 42% after 5 years. If you keep it in great shape, it’ll be worth more. If you bang it up, it’ll be worth less. Do me a favor, take (MSRP) and multiply it by 42%. ($). So here’s what happens. You make your ($) payment, and you keep making it. And bingo, after you make your last payment, you get back to you, what many people never see- is the title to that car. And its free and clear. Its like a share of stock worth ($). You can borrow against it, sell it, turn it into cash, trade it, you can do it. But this is the money that your payment has allocated towards it. If you take ($) and divide it by the term of the loan, which is 60, what’s the number? ____. Every time you write a check to Ally Finance, or whoever you choose to finance with…take (monthly payment) and subtract ($). ($) is your net payment. That ($) is going to the (Last name savings account) in the form of a free and clear title. So you’re really paying ($) for the privilege of driving and showing off the car, I saw the way you smiles when you got out that car…and you’re paying ($) to yourself, to your savings plan. I know you’re trying to make the best decision that makes sense, sign right here
Price: rather
Ok, if price was the same, which vehicle would you rather own?
If the customer inquires about a car that has been sold:
Ok, come on inside and let me check the availability of that vehicle.
Price -Negative equity: not real payment (short)
Ok I’m with you. The payment at 60 months is ($-$), but that’s not quite correct. The payment is actually ($-$). I know what you’re thinking …If that’s the real payment, why did you show me the that payment for?�. Well I showed you this payment, because we have added the ($) negative equity into the balance to finance. So we’re willing to pay off your vehicle, in fact, gladly so. If you handle the negative equity, meaning you take your ($) cash down, up to ($), we’ll pay off the rest of it, and that’ll reduce your payment by ($). Will you put down some additional to reduce your payment?
Payment/Cash COMPLAINT: knew before
Ok I can appreciate that, everyone wants a lower payment. However, when you came in here, you knew exactly what the price of the car was, you knew that you didn’t want to put down any money and use your trade equity, and that’s what the payment is. So I just need you to okay it here.
What about the value of our trade- in doesn’t that count?
Oh yes, of course, but banks just like to see that 20% down in cash
I only came here because you’re close.
Oh really, to where you live and work?….build rapport…so for you, if you could find the right car, and get a good deal with a local dealer that you’re close to, for service and so forth, that would be ideal for you?
I really don’t have a clue what I am looking for
Oh I get it! There are so many makes and models out in the market today, it can be overwhelming. How familiar are you with the models we carry?
