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Pre-owned Prices Are a Secret!

Do you have the price of your pre-owned vehicles displayed clearly on the vehicle?

Do you have the prices of your pre-owned vehicles displayed clearly on the vehicles? If so, well done; if not, why not? Do you have something to hide? Is there something wrong with the vehicle? Is it a secret? Why isn't it priced? These are some of the questions that a customer is asking themselves when they drive through your lot and don't see any prices. There have long been, and will long be, two schools of thought on this issue. In today's market you need to decide which works best in your market and for your dealership, but let�s take a closer look at the issue from a customer�s perspective. We first need to determine how a customer looking for a pre-owned vehicle has chosen the route of pre-owned rather than new. If a customer is specifically looking for a pre-owned vehicle, wouldn't you agree that they must have done some research and have determined, based on their own budgets, that they are not in the market for a new vehicle due to price? That being said, if they are now in the market for a pre-owned vehicle, do you believe that they are looking for a 97 Chevrolet Malibu because that is the specific vehicle they want? Perhaps they have determined that a 97 Malibu is in the price range they want due to that same research. Consider that if you had a 96 Lexus that is coincidentally the same price as the Malibu, they may choose that one. Many of us would agree, customers in the market for a pre-owned vehicle are trying to get as much bang-for-the-buck as possible while still meeting and hopefully exceeding their required needs. I think it is safe to say that customers are shopping prices first and vehicles second when in the market for a pre-owned vehicle. With that in mind, do you feel that a customer driving through your lot would prefer to see a displayed price on the window, or not? In most states, and in all provinces, new vehicles have displayed prices in the window, and how often does a customer looking for an entry level 2-door vehicle come into the showroom and inquire on the luxury SUV? They don't, because they know already that it is not within their budget. The first school of thought is: If you have displayed prices in the windows of your pre-owned vehicles, wouldn't the same principle hold true? The other school of thought is: Vehicles without a displayed price force the customer to come into the showroom and ask a salesperson additional information on the vehicle, including price. This thought is very effective as well, as the customer is now in the hands of our salespeople who will utilize their skills to "land" the customer on one of our vehicles, even if it is not the one they inquired about. There are several key elements that are missed with this approach, and they are stated in the questions at the beginning of this article. There are many more that are not listed above. What if the customer does not inquire? What if they just leave? What if the vehicle that they are looking at is in the range they want, and is more vehicle than they expect to get for their money, how will they know? Is the salesperson going to "size-me-up" first and then give me a price? Is the price going to be the same for me as the next person who inquires? Does it make a difference which salesperson I ask for a price? Will it be the same? The reality is, when we advertise pre-owned vehicles in the newspaper, TV, radio, we price them don't we? So those vehicles do indeed have a set price don't they? Yes, there are some customers who will see the displayed "asking" price and leave, even though you and I know a deal could have been worked out. However, which customer do you think is in the majority, those who see no pricing at all and leave, or those who think the price is too high and non-negotiable and leave? I think so too, so what are you waiting for? Get those pre-owned vehicles priced right now and good selling!