Welcome to Sales Consultant Success Tips.
If a customer is trading in a vehicle that is 3 or 4 years old, the payment has likely gone up significantly because of price and interest rate increases.
The following is called an UPGRADE Close and will help you to overcome this challenge:
“Mr. Lee, your payment does increase by $153 per month for the new Escape versus your current one. However, let’s have a look at what the “real payment” is on your current Escape.
According to the CAA the average vehicle owner will spend $1,400/year in repairs and maintenance once the manufacturer’s warranty has expired. That’s $116/month. In my example I have cut that to less than half at just $50/month.
With your current Escape, you will be spending at least $50 more per month in fuel versus the new Escape. The new Escape gets better fuel economy.
With your current Escape, you will be paying a higher insurance premium. Most insurance companies will charge $200 - $300 less per year for a new vehicle because of new safety technology. In my example I have used $20/month.
So, with the added monthly maintenance expense, higher fuel cost and higher insurance premium, the “real payment” on your current Escape goes from $406 to $526 per month. This is also known as the “effective payment”.
With the new Escape you get fresh, sleek styling, new technology, new convenience features, new safety features and a new comprehensive warranty for $559/month. The difference between the “real payment” and the new payment is $33.For the additional $33/month of “real money”, you would be making a really wise decision. Would you like to pick up your new Escape early next week or later in the week?” Consider joining us for our 1-day New Age Negotiating and Closing Workshop (both LIVE and ONLINE) or our many other Sales Consultant Professional Development seminars and workshops.
I’m Hector Bosotti with Wye Management.
