 Okay guys, today we're gonna talk about the trade-in devaluation process. Now let me share this with you. Anybody that can nail this will be a one percenter. Why? Because no one else in the industry is doing trade-in devaluation. Let me explain this to you. Back in the old school days, this was the way trade-in devaluations went. Go outside with your customers, walk around the car with them, beat them up on their trade. That way when they get inside, they'll take less money. That doesn't work. Let me share this with you. Right now in 2020, today I'm gonna give you the, like here's the test, here's the answers to the test. The way to pick up $100,000 a year on your year-to-date, just by this simple system. This video will be the video that you will never forget. Let me explain why. Because the trade-in devaluation, it happens, the trade-ins come in 70% of the time on deals, and the trade-in devaluation, one, will help you negotiate and close your car deals with ease. You'll never have to worry about combativeness and defending the pencil again in like uncomfortableness. Guess what? You'll know exactly how to preset up the sell, and secondly, I'm gonna teach you something that you've never been taught, and I promise you, no one else in your dealership does it. So, I've got the worksheet here that'll go over everything from A to Z that you need to have so that you understand every single word track and all the questions that I ask in the way that I move. So, I'm gonna start out here with section one. Section one is about, again, what no one else does, you do the write-up, right? And during the write-up sheet, you're asking how do you want your new car titled, and you're getting ready to get into the car that they're buying and the car that they're trading in. Obviously, you put the information down on the car they're buying. Here in a second, you'll probably go outside and get the VIN and the miles off it, right? What most people do at this point is they'll ask for the customer's keys and then they'll go fill out a trade appraisal outside, VIN, miles, equipment, whatever, right? And then you go and get that to your manager and he gets ready to do appraisal. No, not anymore. From now on, you are going to do an appraisal with your customer on your own trade. Let me show you this. This is unbelievable. Why? Because look, we do this step with the customer. The more time the customer spends with you, the less time they will be questioning whether they're making the right decision buying this car from you. Can I tell you what kills deals? Time. Whenever you're writing up your deal, you're getting your trade appraisal, you're running it back to your manager, your customers are sitting inside, what's happening? They're on their cell phone looking at other stores, looking at other deals, and they're doing what? They're getting things that are in their mind that are deal killers. So, how do I take deal killers out of the equation? It's real easy. I take my customer with me. And also, you're about to gather information that physically is gonna change the game. So as I'm writing it up, I say, hey, so check this out. And it says right here, let's have a look at the vehicle that you're selling us. May I have the keys? Yeah, okay, and on your trade-in today, I'd like to go out and take a look at it. Would you mind coming outside with me, sir? Ma'am, would you mind if I steal your husband for a second? I'd like to ask him a couple questions about the trade-in. She says, yeah, guess what? You take the husband, you go outside. What is it you do? It's real simple. You do a silent walk around. You say, hey, let's check it out, let's walk around it. And as you're walking around it, a silent walk around just means this. You're not gonna say anything derogatory. You're not gonna say anything defensive. I don't care if the whole back end is smashed. Let him say it, okay? Now, this isn't the devaluation process. This is just how it starts. Because obviously, now you're taking a look at it for the first time. So you kinda look at it. You kinda look down the sides and check it out. And then they know there's a ding. You just walk over, you kinda touch that. You try to rub a scratch like you're trying to get it out. And guess what? You don't say anything. Your customers will say it. Now watch, as you're going around it here, you ask simple questions like this. Is there anything that I need to know about the vehicle, right, before I present it to my manager? Is there anything that you can think of maybe you need to tell me? I would like to check it out with you. But is there anything that you would like me to tell him about your car? Guess what? Just give him the opportunity to talk while you're doing what's most important. You're looking at the car that they drove up in. You're checking out the condition of it. You're checking out the tires. Hey, I always carry a coin on me. I take a coin and right in front of my customers, I say, so when's the last time that you put tires on it? And I reach down with that coin and I put it in the tire. And what happens is, when they see me put that in there, they know whether their tires are good or bad. And honestly, I need to know whether their tires are good or bad. Why? Because a couple of things are gonna happen. There's gonna be a point during the deal that I'm missing a car deal over a trade-in and I need to tell my manager, hey, didn't anybody not see the brand new tires on the car? Are you kidding me? This thing's front line ready. That car deserves to be worth more money. If we took trade-ins like this every single day, we would sell twice as many cars. I'm gonna tell you, this is the car to step up and put all the money in. Why can you say that? Because you know this car. Why do you know it? Because you took the time to do what other salesmen won't do. Listen, short cutting and not knowing, now you know, and if you don't do this, your short cutting will keep you from being a 1%er, which means you'll automatically default into the other 99% who aren't making any money. If you wanna start killing it, this is how we do it. So, I do a little silent walk around on the car, right? Which means I'm just kinda walking around it. Honestly, I need to really see how nice their car is. In a minute, there's gonna be a pencil come out, a proposal, right? That I'm gonna have to go serve to my customer, and I really need to know what kind of shape this thing's in. Who's gonna defend the pencil? Me or the manager? Me? Because here's the deal. If you're gonna be a high-cheaper and you're gonna be a closer, you're gonna close your own deals. You need to know anything and everything that's wrong with their car. Now, watch this. I don't want anything derogatory said. I'm gonna show you in step one and step two, we ask questions. I'm gonna give you the questions to ask when we're inside. So, with step one, it'll be how to, right? You're gonna test drive this vehicle with your customer. You're going to do your own appraisal. So I walk around it, I check it out, I touch this. Now, what happened here? Did you buy it that way? And guess what? You just go around the vehicle. You're a human being, act like a human being. Now, you say, hey, you know what, Tom? I'd like to drive it down the road, jump in with me. Guess what? Now you take him down the road, you appraise it, you check it out, you check the full-wheel drive, you check the reverse. You look for anything and everything that could possibly be wrong. Why? Because you need to know those things during the negotiation. Two, you're continuing to build rapport with your customer, right? Report's everything. Most people can't close a car deal because the report goes away. Guess what? You continue to build report and then you keep probing for information about the trade-in so you can really understand what they've been doing with this car, what kind of shape this car's in, any problems that they've had, or if it's honestly the one in the million nicest trade you've ever seen in your life so you can get ready at some point if you need to to fight for it. It's your money. Nobody's gonna watch your money more than you will. So guess what? You're gonna take yourself to a whole new accountability level. Now, when you get back with the trade-in, you're not appraising it to put money on it. You're appraising it to do two things. One, to be able to defend the pencil when it comes out if they want more for the trade. But two, honestly, to really understand like what they've been driving and to continue to do what? Build report and not let them sit alone. You're taking this guy with you whether he's got a beater $1 trade or a $50,000 beautiful Lexus. It doesn't matter. You're taking them with you. Why? Because you don't want to sit there by himself. Understand this law. If they sit by themselves, especially in the technology age, then you walk into a customer and say, hey, guys, can you turn your phone off? We don't have cell phones in the dealership. No. So how are you gonna keep them off your phone? Keep them busy. That's how you're gonna do it. So from now on, they're going with you and watch this. When I get back, or even before I drive it, I can say, hey, Tom, do me a favor. Would you turn over, here's the keys. Would you turn over the odometer real quick? Would you read the exact miles off for me? I knew it was 72 something. Would you read the exact miles? Have them help you. And then guess what? When he reads off 73,000, oh, okay. So 73,743. Guess what? And it reminds him that, man, my car's getting up there in miles. Guess what? This is how we work. Now, Tom, a real quick question. Now, with the 70,000 miles, do you have an extended warranty still on the vehicle or is it out of warranty? Now, look, when we get into negotiating later on, do you think that that question's important? Very. How many of you are finding that information out right now? Not very many of you. We're going to ask it during the trade appraisal devaluation. Why are you out there with him? Because you're getting information on it and because you're taking him with you so he doesn't sit by himself. And secondly, you're gonna have to say, and could you read that VIN number off to me? Sometimes they're hard to get. Could you read that VIN number off? Have them help you. Take control of the cell. If you can take control right now, do you have to do this? No. No, you don't have to do it. If you wanna become better, I challenge you by the end of this video to take everything you've learned and literally go put it into practice and I promise you this, your gross will be like this. And plus, you'll never miss a deal again and your customers will respect you because you're actually a professional. Do I sound like a professional? Yeah, you know why? Because I am one. There was a day I wasn't one and I paid dramatically for it. You don't need to pay for it anymore. I'm gonna give you, here's the test. Again, here's the answers to the test. I'm gonna take exactly how to do it. Let's go into step two, okay? These nine steps and the things that I do, it's all right here, which I've given you basically a briefing of, but it's all right here, so you can follow it. Section two, devaluating the trade-in before the proposal. What that means is, now that we got off the test drive, I mean off the devaluation, and we're pulling back into the store, where do I wanna park his trade-in? Where do I wanna park it? Right next to the car he's buying. Most of the time I do that. Why? So before he walks back in that door, he can remember and see exactly how nice and new the new vehicle is. One more last touch on emotion before we get to the pencil. It's very smart. Hey guys, I appreciate you watching the video. This is just one of the 21 videos that's in the brand new course. Click the link below in the description box, and you can actually get access to the full course now. Let's get back to the video. Okay guys, we're gonna talk about section two now. Section two is gonna talk about devaluating the trade-in before you actually go and give the keys to your manager. Okay, now watch this. You have the trade appraisal in front of you, right? You've already driven the trade with your customer. You already have asked some questions. You went around the car. You fully understand the vehicle that they have. They've been with you. Guess what, man? You're getting close to being able, number one, to defend the pencil whenever you get the pencil in a minute from your manager. But number two, also weaken some of your customer's points because a lot of the times they're emotionally attached to their car, not saying they don't want to part ways with it, right? But there's certain aspects that because we present it wrong or when the objections start flying in, we don't know how to handle it. Had you not done any of that stuff I just talked about, you would be that guy with the deer and the headlight look that would start negotiating down or asking, well, how much would you take for your trade? Or not even have the cell set up to make you the most gross profit. So let's get into devaluating the trade-in. This is gonna be inside. I'm gonna show you how we're gonna do it and what you're gonna ask. So you're walking back in the store and you say, hey, man, I appreciate you, you know, let me borrow your husband for a minute, right? We went and checked the vehicle out. So before I give the keys to my manager, all right? And he actually goes and puts a value dollar on it. My manager, watch this. My manager gives, my GM gives, top dollar for vehicles that have been serviced the best. So what that means is a lot of the times if I can supply him with everything that you've done to your vehicle within the last two years, he will give top dollar for this trade-in and guess what? That's what we want. Would you mind sharing everything that you've done with me, done with your trade-in within the last two years? So they say, yeah, so I put an alternator in it. Awesome, okay, and how much did that cost? 700 dollars, okay, what else did you do? We did brand new tires, awesome, I love it. And what did that cost you? And then what happens is I just gather that information because the whole motive and goal of my question is to give them more money for their trade-in. So I wanna scoop information out of them at this point that only the top salesman in the country slow down and make this step happen, okay? The second question that I'll ask after that one and I get all that information would be my service manager's goal, my service manager's goal, right, is actually to take these vehicles and to get them like new for the next customer that's gonna own them. So a lot of the times, even though that our mechanics are great, sometimes there's some things that the eyes just can't see. Something that a scan tool doesn't pick up. Would you mind sharing with me just so I can make sure that obviously we're in a new business right now? When we resell your car, we get anything and everything fixed to make it new for the next customer. What are some things that you would tell me that we would need to do to get it ready for the next customer that's gonna own it? Man, that question, they start laying it in your lap. You guess what? Now you have all the things they've done to their vehicle within the last two years, the money they spent on it and how do I close? How do I teach you guys how to close? Money justification, I'm telling you right now it's about to be lights out. You're gonna take that information, remember to remember what you hear, we're gonna use it during the closing. Why in this course is it called zero to 100,000 fast? Because I can teach you just with one, this one little trick, which is not a trick, it's actually just being professional and doing your job. It's how to do what your competition isn't doing. Customers have never been asked questions like this. You know why? Because everybody's just winging it. Salesmen are so good at winging it. I'm gonna teach you from all the mistakes that I made that cost me a lot of money, how for you to not make those mistakes and for you to just stack it on your paycheck, that's what this course is about. Getting back to the trade-in devaluation where I teach this video, I want you to understand this, this right here, my service manager's goal and then my GM gives top dollar for vehicles that have been, those two questions, that allow you for him to tell you what needs to be done now and then what he's already done. One, what he's already done accumulates ownership costs which means what? If they say they can't afford it well they can't afford not to do it and then secondly, the 1200 that you spent last year, remember when you did the tires, when I'm negotiating, I say well they take that 1200 divided by 12 months in a year, last month you said you had a 380 payment but because you did the alternator, remember that, that you told me about earlier when we were talking about your trade-in? Well that alternator that cost you $1,200, guess what? Divide that by 12 months in a year, that's roughly $100 a month in a small maintenance payment. I know your payment to the bank was 380 but what you spent in ownership was actually 480. So last year your payment wasn't 380, it was actually 480. And when I compare that to the new vehicle that hasn't full warranty, if that happened on this car you wouldn't have to spend that. Do you see how when you gather this information that the whole playing field changes, the whole game changes, okay? So ask these questions, they'll give you a lot of the leeway, now look at where we stand, we've got all this done. I'm gonna read a couple of things off to you and then we're gonna sum it up and go over review. This is very important. It's the missing ingredient to holding gross and building trust, the trade devaluation. The trading is one of the most emotional aspects of negotiating. Here the vehicle has loved, repaired, cleaned and relied upon this car for transportation over the last couple of years they've owned it, okay? It is usually a vehicle that they have feelings for in some way or another or in some cases or even attached to, okay? Because of this it is usually area of the deal that causes the most stress and our goal is to cause no stress and no friction. So doing it my way the way I'm teaching you pushes all of that out, okay? Not because they're not ready to part with it but because of how we handle the presentation of the figures, right? Presentations, everything. Rarely do we take the time to explain our process and how we arrived at the top value for the trading because we don't understand it. You'll understand it now, okay? Usually a salesman generally goes into negotiation with a number for the trade in that he or she doesn't understand or doesn't know how to defend. To make matters worse, we are very quickly to back off of our number that we give them on the pencil and give in when the negotiation starts due to not having a plan. You have a plan with this trade into valuation now. And lastly, with the proper trade to valuation you can clearly lower the customer's expectations for their trade in before the pencil. Guys, I wanna tell you, everything in this course is sit here and mapped out A to Z so that you understand, I mean literally every single step, every single work track that it has. And to sum it up, I just want you to understand the clearness of this is that what we have here is a customer goes with you to drive the car. You take them outside, okay? You say, ma'am, can I borrow your husband? Or sir, would you mind coming outside with me for just a second? I was gonna look at your trade in, I have a couple questions I might have so I'd like to have you come with me. Is that okay? Yes, they go outside with you. You walk around the car, you do a silent walk around. You check it out, you put a coin in the tires. You check it out, you're a friend of them. You're building reports, you're going around it, right? It's like you're doing your job but you're also with your buddy, okay? That's you guys. And guess what, while you're going around the car you check it out when you're ready to get inside. Hey, Tom, would you get me those miles? Hey, Tom, can you read that VIN number off to me? Take control. Now, say Tom, jump in, let's go take this down the road. In case I have any questions, I can ask you. You and Tom go down the road, when you get back you pull it next to the trade in, right? I mean to the car that they're buying. Tom sees the car that they're buying one last time. Maybe I even give a little quick walk around, put some emotion back on it. He sees himself driving it home. We're going back inside. When we go back inside the building, I'm going to ask some questions. My manager gives top dollar. My service manager's goal is. And then now I've got all this information. I'm going to go get this to my manager. I understand his trade like the back of my hand. Do you understand? Confidence comes from competence. And competence was just born in this one little field. In 21 sections of the course, you get nothing but competence in every single section. The trade devaluation, it's never talked about. People say they do it, no they don't. I can look at your year today and I can tell you whether you're doing it or not. Now, now that you know what your competition don't know, if you don't shortcut, you will kill it with this. This is one step that makes a giant change in the game. Now, you ask your questions, now what do we do? You give your appraisal to your manager, okay? And you're ready for your pencil and you say, hey, as soon as you get back, I'm going to be with my customers. Page me, I'm ready to go close this deal. Watch this, you're ready to defend the pencil, your manager drives the car and what happens? Complete mastery. You are so ready if that customer says, well, I need more for my trade. Okay, well now I know what needs to be done to your car. I can talk about it. Now I know what you've done to it in the last year is I can talk about the money you've invested in it and then what else can I talk about? I can talk about a lot of things. I've driven it, I've checked it out with you, I've gone around the car. I can defend this more than anybody. More than likely, all of the steps that I have done, not only does it prepare me for the next step, but it also allows my customer to start understanding that their car probably would be worth a little less than they thought it would be worth. This is the trade-in devaluation. Guys, have a great day, I'll see you soon. Let's get to work, work, work, work, work, work, let's get to work, work, work.