As a car salesperson, you’re often the first point of contact for customers walking into the dealership. One of the most common questions you’ll encounter, and often very early in the conversation, is “What’s my car worth?”. It’s a natural question, as customers want to understand their budget and the value of their current vehicle when considering a new purchase. However, directly answering this question with a number upfront can be a pitfall that experienced sales professionals learn to navigate.
Why is it that sales management, and not you, handles vehicle appraisals? It boils down to expertise and strategy. Appraising used vehicles is a specialized skill, a core component of the sales manager’s responsibilities – and a significant reason for their higher compensation. For you, the salesperson, prematurely stating a trade-in value can create scenarios that are difficult to recover from, potentially jeopardizing the deal before it even gets off the ground.
Let’s look at a couple of examples that highlight why giving an off-the-cuff valuation is risky.
The Perils of Early Valuations: High and Low Ball Scenarios
Imagine the actual trade value of a customer’s vehicle is $5,000.
The Deliberate High Ball: Setting Unrealistic Expectations
A salesperson, aiming to be agreeable and keep the customer engaged, might tell them, “Your car? It’s probably worth around $8,000!”
Initially, the customer is thrilled. You’re the salesperson who finally told them what they wanted to hear! They stick to you like glue, feeling confident and positive. However, the honeymoon ends when the actual appraisal comes in, and the numbers don’t align. Suddenly, you’re in damage control, having to explain the discrepancy and potentially lose the customer’s trust. The “deliberate high ball,” even with good intentions, often leads to a difficult negotiation and a strained customer relationship.
The Accidental Low Ball: Alienating Potential Buyers
Conversely, imagine you accidentally undervalue the trade-in. “Hmm, based on what I see, maybe around $3,000?”
In this “accidental low ball” scenario, the customer might perceive you and the dealership as dishonest or trying to cheat them. They become immediately distrustful, and their enthusiasm for buying evaporates. They might walk out, telling their friends and family about their negative experience. An accidental low ball can kill the deal instantly and damage the dealership’s reputation.
A car salesperson engaging with a customer who is asking about their car’s worth, illustrating the initial customer inquiry about trade-in value.
Navigating the “What’s My Car Worth?” Question Like a Pro
So, how do you handle the inevitable question of “What’s my car worth?” without stumbling into these valuation traps? Here are some proven strategies and word tracks to guide you:
Scenario One: The Direct Inquiry
Customer: “Mr./Ms. Salesperson, can you tell me what my car is worth?”
Your Response: “Yes, I certainly can help get you an accurate value for your trade-in. To start, could you tell me a bit about your vehicle? What make and model is it? Do you have the maintenance records handy? Knowing more about its history and condition will help us get you the most precise appraisal. In the meantime, to make sure we’re finding you the perfect new vehicle, would it be alright if we talked about what you’re looking for in your next car first? That way, we can find the right match for you, and then I’ll have our expert vehicle appraiser give you a professional evaluation of your current car. How does that sound?”
This approach acknowledges their question, expresses willingness to help, and smoothly redirects the conversation towards their needs in a new vehicle, delaying the immediate valuation.
Scenario Two: The “What Will You Give Me?” Question
Customer: “What will you give me for my car?”
Your Response: “That’s a great question! To give you a precise number, we have a dedicated vehicle appraiser who specializes in evaluating trade-ins to ensure you get the fairest market value. But before we jump right into the appraisal, let’s explore what you’re looking for in a new vehicle. Finding the right car for you is the first step, and then we’ll get your trade-in appraised ASAP. Does that work for you?”
Again, you’re validating their question while shifting the focus to the vehicle purchase process.
Scenario Three: The Persistent Customer
Customer (A): “I want my car appraised first before I look at any vehicles on your lot!”
Customer (B): “I need to know what you are going to give me for my car before I can decide what car I can afford.”
In these situations, avoid arguing or becoming confrontational. The customer is expressing a need for information and control.
Your Response: “Okay, absolutely, I understand. No problem at all. To get the appraisal process started, could I please get your car key, ownership, and mileage? Do you happen to have any maintenance records with you, and has the vehicle ever been in an accident?” Also, ask, “Could you point me to where your car is parked so the appraiser can easily locate it?”
A customer firmly stating their need for a car appraisal before considering new vehicles, highlighting a common customer demand in trade-in discussions.
Your next step is crucial: take this information to your sales manager immediately. Explain the customer’s request and your approach. The goal here isn’t necessarily to get an instant appraisal, but to demonstrate to the customer that you are listening and respecting their needs.
When you return to the customer, say something like: “Great news, Mr./Ms. Customer, we’ve started the appraisal process for your vehicle. It will take just a few minutes for our appraiser to complete their evaluation. While we’re waiting, let’s use this time to explore the features you’re looking for in your new vehicle. What are some of the things that are most important to you?”
This keeps the sales process moving forward, allowing you to find a vehicle that meets their needs while the appraisal is being handled by the appropriate personnel. In many cases, the manager might not rush the appraisal immediately, but that’s not the primary objective at this stage. The key is that you’ve acknowledged the customer’s request and are working with them, not against them.
Timing is Everything: When to Discuss Trade-In Value
So, when do you tell the customer what their car is worth? The most strategic time is after they have selected a vehicle from your inventory and have expressed genuine interest in purchasing it. Once they’ve emotionally connected with a specific car and see themselves driving it, the trade-in conversation becomes much more productive.
This approach, while sometimes perceived as “old school,” is rooted in years of successful sales experience. It’s about timing and patience. It’s about following a well-structured sales process that prioritizes the customer’s needs and manages the trade-in conversation strategically.
Darin’s Key Takeaway
The principles discussed here are often reiterated by sales managers because they are time-tested and effective. While other sales methodologies exist, mastering these fundamental strategies for handling the “what’s my car worth” question will provide you with a solid foundation for success. It’s about having a strategic game plan, honed through experience, that allows you to navigate customer interactions effectively and close more deals. By understanding the pitfalls of early valuations and implementing these techniques, you’ll be well-equipped to handle the “what’s my car worth” question with confidence and professionalism.
