"I Need to See if I Have a Job Before I Can Buy a Car."

"I need to see if I have a job before I buy a car."

I hear that daily. I sell cars in Michigan and it is no surprise that if the Big-3 disappears, so will Michigan. Most of the jobs here depend on one of the Big-3--whether it is a supplier, restaurant, car dealership or your average car salesperson (GULP!)

Well, I find it very hard to believe that the government will let that happen. After all, the Big-3 pretty much helped win World War 2 with its manufacturing base and GM helped save this country's economy after 9-11.

So, why the wait?

Well, to put it bluntly, a third of $25 Billion is enough to give, for example, GM a couple of months before they run out of cash. Our government that can spend $20 Billion a month in Iraq to help people who pretty much by now hate us wants to make sure that they don't throw away month that may cause the war to end (by lack of funds) one month earlier.

In other words, they want to make sure they get paid back. They want the Big-3 to be able to change their business practices so they no longer lose money but can pay it back. This will of course require concessions with the UAW, suppliers, excess dealers, etc.

You know what else it will require?

They will need to sell more cars!

OK--now we get to the meat and potatoes of this article.

Right now, I am doing nothing but calling customers. Unsold prospects, previous customers, etc. They are all telling me they want to wait until they see if GM is still there before they buy or if they will have a job.

I think GM will get their bailout and I think they will strive to sell more cars because right now, dealerships are not buying cars from GM and guess what--dealerships are really GM's customers, not the average consumer. The only way dealership will buy more cars is if they sell the ones they have right now (or at least think they will sell the ones they have right now.) Surely, someone at GM will be smart enough to see the relationship and make it worth it to buy a GM car, truck or SUV.

SUV? What's that? Oops--gas is back under $2.00 per gallon so I went back to my old ways. Sorry about that...

Car, truck or crossover.

What does that mean to you?

It means this: start a "vehicle shopping service" for your customers.

What is a "vehicle shopping service?" It's simple. You ask your customers what they want, when they want it, how much they want to spend and tell them that you check the programs daily and will call them when it is the optimum time to buy. When it becomes that time (after all of this blows over) then call them all and say, "Now is the time!" and you will sell a ton of cars.

I know it's stressful right now. I sold 15.5 last month--made a lot of money, led the dealership in the roughest market in the country (Michigan) and have exactly 0.5 out right now, November, 23. But I keep plugging away making my calls. When all this blows over, I will probably have a 30 car month.

It is hard to stay positive but we must. We are a rare breed. We have huge highs and huge lows but if you can make it through these lows and learn some great habits, you will have some VERY HUGH highs in the future.

Also, it is a great time to use a program like my Car Sales Assistant 2008 follow up CRM software. For time time being, I am offering a 25% off coupon because I know times are tough (and I only have 0.5 cars out... ;-) so use coupon code TAKE25 at checkout to get the discount. This is only for a limited time, by the way.

Here is a link to my store where you can purchase if you'd like...

Whether or not you use my software, I appreciate you reading this blog. Hopefully you can find one little tidbit to help you make a sale and get you through the roughest patch we will ever see in our careers.

Marv

Feel, Felt, Found

Want a quick and powerful method to overcome 90% of the objections out there?

Here you go--it is called feel, felt, found. How does it work? It would be easier to give an example.

CUSTOMER: I will not buy because the car is red.

YOU: I understand how you feel. I had a customer last week who felt the same way. You know what he found out though? He found out that he could settle for any color if the deal was good enough--he saved thousands of dollars and just called me yesterday and told me he loves his new car.

OK. Lets try another one.

CUSTOMER: I can't buy until the stock market picks up.

YOU: I understand how you feel. I had a customer just last week who felt the same way until he found out that the deals are excellent right now because of the bad economy. When the economy picks back up, the deals won't be nearly as good so you might as well take advantage of the savings and do business right now.

Get the picture?

Anytime someone has negative equity in a trade, I can honestly understand how they feel because I have had--on average--$4500 in negative equity in my last three trades and I am in the car business!

If anyone ever complains because they can't afford a payment, I certainly understand how they feel because I support a wife and two kids with only my income and I understand what it is like to be on a budget.

This is a very powerful close--probably one of the most powerful. Please remember that sometimes, people will make a statement like "That is a high payment" and it should be treated as a statement unless they turn it into an objection like "I will not buy the car because that is a high payment." Then you can blast them with feel, felt, found, overcome the objection and hopefully find a bank to approve them.

CSA 2008 Downloading and Updating just got easier!

I finally broke down and bought a good install building program to make installation of CSA 2008 as well as the updates easier.

If you have ever had trouble downloading Car Sales Assistant 2008, you can now download it here.

Windows 98, ME, NT, 2000, XP
http://www.carsalesassistant.com/software/CSA2008_Setup.exe

Windows Vista:
http://www.carsalesassistant.com/software/CSA2008VistaSetup.exe

To update to the newest version (3.0.2) download and run the updater program
http://www.carsalesassistant.com/software/CSA2008_Update.exe

Marv

How to be Successful in this Economy

By now, I'm sure you have seen the results of the media and presidential election created bad economy. I know I have. By the way, this is my 4th election selling cars and they are bad times economically! Why? Because you have two guys running who are spouting nothing but negativity against each other all over the mass media. You have presidents spouting something they know nothing about (economics) saying "If this bailout doesn't pass, we will be in another great depression!" Uh--it passed and the stock market is tanking... You have CEO's of auto-makers worried more about selling fewer cars and saving a few bucks per car thank how to sell more cars! Wow--how did we get from there to here? Was it just people buying homes they couldn't afford? Was it me talking a bank into approving someone who had no business buying a car? Was it a war that jacked up fuel prices that made broke people broker? Was it lack of leadership? Was it the media? Yes--all of the above and more.

Today, when I was getting ready for and walking to my car, my neighbor came up to me and asked, "How are you selling cars when banks are not financing them anymore?"

Thanks, media!

"I sold 4 in the last 2 days," I answered.

"Wow--how in the world did you get them financed?"

Thanks, media!

"Just like all the ones for the last 12 years," I explained. "I take their credit information, submit them to a bank, and get them approved."

Maybe the banks have tightened up, maybe not. I haven't noticed. Everyone who has come in front of me and wanted to buy a car has gotten approved with the exception of one guy who wanted to buy a Corvette with no credit, no job, etc. The so-called credit crunch made no difference for him.

Now granted, banks are tightening up but don't you have more than one bank you can submit a customer to?

OK--how to be successful in today's "bad" economy.

• Stay away from the newspapers, news on tv, the internet--they have nothing good to say.
• If someone walks on the lot, greet them, do a great job building excitement and value and sell them. I promise you this--they would not be wasting the gas to come on the lot if they weren't interested.
• Stay away from the other salespeople--let them have their huddles talking about how bad it is. Walk right past them and grab every "up" you can.
• Tell customers it is a great opportunity. 12 years in the car business and I have never seen deals like the ones we have (over $8000 in rebates on certain vehicles).
• Maybe use the credit thing as a close. "If I can find a bank that still has money, would you like to get some of it before they run out?"
• DO NOT CHECK TO SEE HOW MUCH YOU HAVE IN YOUR 401k! You will just depress yourself. It will come back--just like it does EVERYTIME it falls (which has been about 20 times in my life alone and I am 41 years old.)
• Do a better job following up. 2 out of 4 of my sales in the last 2 days were from repeat customers and I have a few more in the works.
• Smile all day--it is catchy!
• Send out a post card to everyone in your database letting them know that you still have money to loan and that rates are cheaper than they have been in a long time.

That reminds me--my wife got a new credit card in the mail--the old one expired. You know what they guy on the phone asked? "Do you have any balance transfers? I can give you 1.9% for 1 year." Wow--what does that tell me? They would not be offering 1.9% if they were almost out of money.

Lastly...

• Get ready for the "BOOM!" It will happen like it always does after a bust. I don't care which person wins next election--America will have a new and fresh outlook and there will be a boom.

Thanks for reading my ramblings and go out and sell a car today!

10 Tips for New Car Salespeople

I had someone just email me with 3 months in the business and asked me for some tips and here's what I emailed him in no particular order. If I would have known these years ago, I would be way better off today.

1) Stay away from other salespeople--especially below average ones. They will try to get you down to their level.

2) Treat everyone on the lot as a buyer. Never pre-qualify

3) Put everyone you talk to into CSA 2008.

4) Send something out every month to the people in CSA 2008 (postcards work great)

5) When someone leaves the lot and doesn't buy, call them as soon as they leave and leave a message on their home phone. "I have some great news--call me back as soon as you get this." If they are interested, they will call you back. Great news can be more for trade, new rebate, another car they can look at, etc.

6) Start high in negotiations--it's easier to go down than up.

7) Take every deal--mini or otherwise. They might refer someone that you can make some money on.

8) Test drive with your customers. If not, they will conspire against you.

9) Use a good greeting like "Welcome to ABC Motors. My name is Justin and you are...?" "John." "Nice to meet you John. Is this your first time up here or have you been here before?" Remember: He who asks the questions controls the sales process.

10) Never give up on a customer until they say NO at least 5 or 6 times. If they say NO 6 times, do a turn-over (TO) to your manager.

New Update for Car Sales Assistant 2008

Hi, Everyone!

Been a very busy person--was salesperson of the month last month, am now leading the dealership in new car sales for the year and even started a two out rally in the 7th in softball today that got us the 4 runs to win the game!

But that has nothing to do with this post. Just wanted to brag a little bit!

Well, I now have a new update for Car Sales Assistant 2008 up and running. You can download the update here and if you are not sure how to update, please check out the tutorial here.

I've fixed some bugs and crashes and added some new cool looking menus (click the picture above to see them.) By the way--the kid in the pic is my son Alex--still too young to buy a car but cute none the less.

Please keep the bugs coming to me so I can squash them and thanks for all of your patience when waiting for fixes. I have been working hard on a new huge HUGE HHHHUUUUGGGGEEEE program that is about to hit in the next couple of days--something that I am very proud of.

Haven't purchased CSA 2008 yet? Visit my store and watch the sales happen!

http://store.carsalesassistant.com


Marv

The Importance of Follow Up

In my 12+ years of selling cars, I have never seen it slower in regards to the number of "fresh ups" that come into our dealership. Nothing seems to work--advertising, bill boards, direct mail, etc.

So--what do I do to sell more cars?

Well, I follow up with everyone that I have talked to at the dealership.

I use a combination of my Car Sales Assistant 2008 program and a legal pad. The program to help me keep track of contact and the legal pad for an "overview" of the people I have talked to. When I get someone back in, I write SOLD with a big black magic marker--it kind of gives me positive reinforcement! Plus--it looks cool when the manager comes by.

Why is follow up so important?

Well, here are some truths about people that come up on your lot.

• For the most part--they are in the market for a car.
• For the most part--if they came to your lot, they are at least considering something that you have to offer.
• For the most part--if they come on your lot, there is a huge chance that they will be buying something within the next few weeks. Some sales trainers have stated that most will buy within a couple of days but my experiences have stated within a few weeks.
• For the most part--you have an 18% chance to sell someone who comes on your lot.
• For the most part (getting tired of the "for the most parts yet?" It will be a given for now on...) That leaves 82% of the people who came on your lot who didn't buy.
• If you do a good job following up on those 82% of the people--any one of them you get back on the lot, you will have about a 50% chance of selling them a car.

Wow--what does that mean in mathematical terms?

If you talk to 30 people in a month, you will sell about 6 on the spot. Out of the other 24, if you do a halfway decent job doing follow up, you might get a third back on the lot--so, 8 will come back. Out of those 8, you will sell 4 (on average.) Can you see where this can be important yet?

OK--I am sitting on 8 cars right now (it's slow here in Michigan--as of yesterday, I was leading the board with 8...) Out of those 8, 4 were "be-backs" that I got back up and sold. Actually, my closing ratio for be-backs is higher than 50% (you can track it with my software) so I work real hard to get people back up to the dealership.

I see people all the time who catch an up and if they don't sell them, their ego gets in the way and they assume that the people just couldn't buy, etc. Well, they are dead wrong and they are losing sales by the dozens.

OK--here are some concrete steps you can take to increase your sales IMMEDIATELY!

• Treat everyone you talk to as a buyer. They would not be there wasting their time (for the most part--sorry) unless they were at least "thinking" about getting a car.
• If they don't buy, give them a "great news" call. "Hey Jim--I have some great news--call me as soon as you get this message." When they call back, "Great news--I have another manager that wants to take a look at your trade. When can you bring it by--right now or later this afternoon?" Remember--if they come back--you have a 50% chance of closing them on the spot.
• Send them a thank you letter for stopping by with a business card in yours since they probably threw yours away or added it to a pile.
  
• If the don't come back--call them again from time to time but always have new information for them--such as new rebates, a great used car you just got in, a new car with the color they really wanted, etc.
• If they don't call back after 3 calls, I assume they have bought somewhere else or do not want my product. Sorry--I don't call until they "buy or die"--there are too many others to call. I do give them a final, "Do me a favor--if you are out of the market, please call and leave me a message on my voice mail so I can quit calling you." (Mention the voice mail because that is non-confrontational--they may not have the guts to tell you live over the phone.)
  
• Put them into your master database like the one on CSA 2008. Send them something once a month. I have had people come back literally years later and buy off of me. "I bought somewhere else but they treated my like crap," I hear a lot.
• I send out postcards (easy to print with CSA2008--sorry about the plugs for my software--it really does help people sell tons of cars.) because they are easy to read and don't look like all the other junk mail we all get.

Well, just some quick tips--do some follow up on everyone (except for those who cannot buy) and you will be amazed about how many extra cars you will sell a month.

Marv