How an HONEST CAR SALESMAN sells at DEALERSHIPS - 2022 Auto Expert: The Homework Guy Kevin Hunter

how an honest car salesman would sell a car at a dealership hello I'm Kevin hunter I'm being asked by my viewers and many who are in the car business how would an honest car salesman sell a car what a great question I don't think I've ever published a video that's likely to tick off the bad actors in the car business more than this one so if you see the dealers complaining in the comments section do us all a favor reply to the comment and let them know what you think together we can make sure there's no future for bad actors in the car business now you've heard me say that there are good people in the car business some of you can't believe it because you were burned and I get that but let me read you a recent comment from a dealership hi Kevin my name is Terry Speights and I've been selling cars for twenty plus years I currently own a used-car dealership and they want to implement a new way of transparency and straightforwardness many of the things that you talked about and are sharing have bothered me for years I have some ideas and I think you're just the right guy to talk through them with I'd love to chat with you is there a way we can get in touch please Terry is an actual dealer in the Midwest his business is real his request is real I've decided to take this on the road I'm going to help dealers like Terry win I will visit his dealership and any other dealer owners who want to lead the Renaissance in the car business just you wait those stories are going to be amazing now let's deal with the question how would an honest car salesman sell a car this is really important because the answer provides two critical pieces of information number one it provides a pathway for good dealers like Terry about how to survive do you want your customers to be excited about meeting and honest salesmen number two it helps all of you car buyers out there immediately spot people who are dishonest when you find a bad salesman at a dealership give them one chance by asking for somebody else if you're not comfortable or you don't get someone else just leave and find another place to do business with if you reward the bad guys with your business you're actually part of the problem quick housekeeping if any of you have questions on what I'm about to share put it in the comments section below you'll either get feedback from other viewers or I try to get back as often as I can subscribe to the channel if you're new here hit that notification bell so you can stay up to date alright I'm going to make it possible for good dealerships to get rid of the predatory sales attitude common to the car business and make it possible for car buyer to enjoy car shopping once again here we go here's how an honest salesman would sell a car number one build on a sound financial foundation you can't force people to follow good advice but you have to understand what good financial advice is in the first place if you think it's fine to push your customers into 72 and 84 month car deals you're wrong before you even start you may as well shut off this video until you have a change of heart I want to share a brilliant piece of advice given to me by a longtime family friend and a bank president Earl kasky he said if you need to finance your car for more than thirty six months you can't afford the car you're trying to buy he added take a longer term and you're going to be car poor for years leave your ego at the door and buy something cheaper I remember thinking that's advice you'll never get from a Salesman now why did Earl say it and a dealership finance officer never will because one is selling you a bill of goods and the other actually cares about your financial future Earl's giving you a clue about how to be an honest salesman but it all starts with actually caring about others more than your own selfish ambitions think about it if you're not starting out understanding what a proper financial foundation is in a car deal you're in no position to recommend anything else good for your customer either you can't be letting them think that killing themselves with a 64 72 or 84 month loan is okay it's not okay and you know it for all you salesmen and finance officers out there by starting out suggesting long term loans are okay you're setting the buyer up for overpriced gap insurance policies and expensive service plans and then you did even worse but letting the customer think zero cash down was okay too none of this is in the realm of affordability and you know it this is really key because you must start with a solid foundation or none of the rest of your advice and help to a customer will be worth anything and you'll be just as bad as any other person out there now let's move on to the first meeting with a customer otherwise known as the meat not everyone is aware of the fact that a car salesman is trained to get contact information from every person they are talking to and enter them into a database the salesman also has to check in with the managers desk during your visit which is an undisclosed introduction to a team of closers this teo or turnover increases the odds of closing you on a car deal today every one of you salesmen out there know that this process and all of your early questions are not about providing good customer service it's all about closing summary that car dealers try to get contact information right away that car dealers have their salesmen connect you with a closure right away that car dealers ask what your monthly payment goal is right away they don't give a crap about you because you're nothing more than a piece of meat to be added to their monthly commission sheet but what does a good salesman do he's actually focused on customer service and for me it played out just like this as I approached a person on the lot I'd ask you mind if I ask you a question are you folks looking for a Salesman are you just hoping to get some keys do a few test drives ask a few questions and then go home and think about it after a momentary look of confusion because they didn't expect that on the car lot they say we just want to do some test drives I'd come back are you sure because if you really wanted to buy a car today I'll certainly go get you a Salesman no we don't want a Salesman they say what do you do here here's where I really got to shine I'm a consumer advisor in the car business I help people get through the process of buying a car without getting ripped off I recommend you drive a few cars get answers to your questions and then I'll send you home with some things to think about and a few assignments to complete before you come back don't worry about taking any notes because I have it all outlined on a video on youtube you can watch it tonight sound easy enough I briefly explained about my website called the homework guy and then got busy getting keys and making it a fun day for them if you're sincere about helping people put up your own website put up your own videos but give actual good advice like you give your own mother the homework Guy branding wasn't a marketing gimmick it was a legitimately fair honest transparent way of doing business with car buyers and they loved it this initial connection with the customer is really important it my customers think wow did we just get a lucky break and then when they got home and watched my video on YouTube they thought they had found a saint in the car business I say this because I thought you should know that a really good sales process causes people to put a ton of faith in you and they will feel fortunate to have found you for every other salesman out there 95% of the customers who meet them will see him or her as a scumbag right from the start fair or not that's just reality the Gallup poll that ties a car salesman with a telemarketer and a congressman for the least trusted profession it confirms that that's the elephant in the room nobody trusts you in the first meeting you have with a customer you have to call out that elephant in the room and absolutely shatter the scumbag stereotype and you'll never do that by saying I'm not a scumbag like those other guys my process was so different that within minutes of meeting me people would say it's so nice to meet someone we can trust within minutes you guys if your current salesmen watching this I caution you against thinking wow this is a genius gimmick I need to use those lines you're going to make a huge mistake if you don't figure out something right here right now the moment your customer sees you're different and is now placing their trust in you never betray that trust everything you do must build more trust they will count on you asking for your advice on everything betray their confidence and you're done for my salesmen and dealers in the audience here's my 10 tips for becoming a top performer and for all the right reasons number one remember Earl's advice about the 36 month car loan when my client finished their homework and we sat down to talk if I knew they were financing I asked them questions built around the 36 month loan model I'd ask the customer do you have money to at least pay the tax title and license fees everyone should know that it's foolish to finance taxes and license fees and I told my customer so be is it possible to put 20% more cash down again it's foolishness to finance a car without a good cash down payment and see based on a 36 month note what's the comfortable payment you think fits into your budget we'd already talked about how foolish long-term loans were I started with Earl's advice the smart plan the answers to these three questions tell you what your price limit is now let me demonstrate how the math works if you said you're comfortable monthly payment was four hundred thirty five dollars and he answered that you could pay tax title and license and he said sure I can put 20 percent cash down and you've agreed to the thirty six month loan the math paints the picture of a twenty thousand dollar price limit with four thousand dollars cash down fifteen hundred sixty dollars in tax title and license fees paid out of your pocket as well for a total of five thousand five hundred sixty dollars out-of-pocket using a six point eight percent sales tax and a very average five percent interest rate to create the example we hit your $435 monthly goal but now you know what the shop for a car that's twenty thousand dollars or less now think about it any customer who likes this perspective is out drooling on a vehicle they can't afford if you are unscrupulous and only care about yourself you help them destroy themselves financially they'll sign out on that eighty four month loan without any cash down on payments they can't afford it's only a matter of time before a tow truck from the bank is in their driveway towing that vehicle away with its bloated loan now you don't think this happens last year's repossession facts showed that for every 2.1 car sold in the market one existing vehicle on the road was repossessed what just happened to your repeat customer and all those referrals you would have had if you had been watching out for your customer monthly payments mean nothing when the rest of the equation doesn't add up you understand now you can use my equation above an easy calculator at car payment calculator net and now you know what you can afford number two I always told my customers to get pre-approved at their own bank or credit union first before they made any decisions I included these instructions have your credit union give you a pre-approval based on a 36 or 40 month note at the max add your own cash into the equation and you now know what you can afford this also tells you what interest rates you qualify for if the dealer finance officer should offer you financing you have a benchmark to compare so tell your customers to get pre-approvals and shoot for 36 or 48 months max number three working with the customer conduct a fair market analysis of the car you finally land on do it together on the internet there are so many sites you know the good ones car gurus cars.com auto trader make sure your customer knows the fair market price has seen all the information with their own eyes and the two of you come up with an agreement on what the fair market price is for the car that you're on it's up to your dealer to be competitive if they're not you're going to help your customer get the fair market price that's what I always did let me give you an example sometimes it took two hours but if our car was eight hundred dollars over fair market price I always ask my customer when's the last time you made four hundred dollars an hour let's sit here until the price makes sense no matter how much the manager offended them with the first pencil their second pencil and so on also known as the first second and third offers my customer patiently waited nobody was being forced in to sit there the customer actually enjoyed it watching the managers worked for them and noticing that each time they came back the price was getting right like some of you I had buyers that said I don't care if the dealer gets screwed I want the car as cheap as possible well you know what I turned that customer over to somebody else I was working towards fairness made that obvious and expected the same out of my customer if you run into a client who's just as bad as any dishonest car salesman out there turn them loose what I learned is that most people will agree to pay a fair market price they know you have to make a profit they just don't want to be gouged if you do the homework and let them see every single step of it this understanding is quite easy to reach number four contact at least three dealers for a trade-in appraisal so they get a fair trade evaluation show them how to do it right over the phone then show them how the book out process works and help them realize how important it is to be honest about the condition of their car when it comes time for your own car appraiser to look at their trade tell them to wait until your customer standing right there go over the car with them with your customer and then before he sits down to put the information into the dealer software ask him to turn that screen around so your customer can watch you're forcing your guy to put in the proper trim levels the miles etc you see even delist print out their trade evaluations they often leave unanswered questions in the database so the car comes out undervalued and then they print out a very low number as evidence of transparency when in fact it's just the opposite it's a big fat lie with an accurate book out and the three other dealer bids you and your customer can determine the right number for their trade then you sit down and wait for the managers to get it right number five if the customer indicates they're interested in the service plan or warranty of some kind shop them together on the internet you'll find lots of information on pricing and even complaints on lousy suppliers of warranties make sure they know the good ones from the bad ones make sure they aren't getting gouged and make sure the customer knows any plans offered by your finance officer are always negotiable just like the car price was number six show the customer what other products might be offered to them in finance be honest about what's good or bad it's unlikely that you have any of these things on your own car and that should be evidence enough about what you should be suggesting to your customer number seven you have to coach the customers on what fees they're likely to see in finance and review the legitimate fees as shown on the state website tax title and license look them all up you know as I do that document fees are some of the most commonly abused fees explain that document fees fit in the category of ADM fees additional dealer market they don't have any purpose other than to pad dealer profits to be clear I'm not opposed to dealer profits not in the least bit but I am opposed to charging people for things and then pretending it's not simply for dealer profits document fees are exactly that along with several other fees they'll encounter in finance make sure they know about all of them number eight tell them they must read every line ask questions about every detail on the final copy tell them they should not sign anything they aren't comfortable with let them know they can always tell the finance man I want to go out and talk to my salesmen before I sign that and just get up and come out and find you don't betray that trust if the finance man is out in the weeds tell them if they have a question about a product use your smart phones to research it together if you want them to think of you as a trusted source will actually be one number nine this is the serious litmus test but you have to be willing to tell your customer that they can get up and walk out of the finance office if that officer mistreats them they can ask for a different finance officer if they want to stay with you and do the deal anyhow but nobody has to put up with nonsense if your finance officers aren't getting that they can't mistreat your customers find yourself a new dealership to work at and then come back to my site and report them put it right on these videos buyers deserve to know who the thugs are number 10 review the customers contract after they've signed out don't do it in the showroom floor go out and sit in their new car look over the documents as long as my customer hasn't left the dealer the delivery isn't complete and everything on the car contract is still negotiable you see now why those finance officers didn't like me now you'd agree that this process is both fair and honest but what had earned the trust of the customer is that I made the entire process very transparent yours has to be too when you do the stuff with them show them everything make your car appraisers show his book out process shop trade values of other dealers shop market values with them on the internet they see it all they see your effort and they know they have a friend in the car business you now have a customer for life do you car dealers out there the problem isn't that tough to fix you dug yourself into the hole that you're in I just gave you a way to dig out there is no need to be dishonest there's no need to control the customer there's no need to be pushy and coming up with new gimmicks to empty the pockets of your customers despite everything you believe about car prices there's no need to win the race to the bottom if you're doing that you're doing so many things wrong that there's no real value in your sales process you're only using a price to get a customer in your door and once there you rip them off every way you can you need to fix all of that nonsense and there's no time like the present customers are sick and tired of the old broken predatory business model if you appreciated this video presentation today there's a couple ways you can say thanks give a thumbs up or leave a nice comment share it with your family and friends on social media and for those of you who want to leave a tip I'll put a link in the description box below just don't hurt yourself a dollar - says a huge thank you I want to say one thing about the PayPal tip jar some people think it's really stupid but I like it for two reasons it's the best measure of how much people appreciate what I do that tells me what I'm really hitting a homerun with my content when even a dollar shows up because there's zero obligation for anyone to do that however I also have some really fun plans for it we are traveling the country to different dealerships helping car buyers get fair car deals we're doing it on our own dime and your tips just help to fund that however we are also taking it an extra step if we come and represent you for your next car deal in your city we are also adding to your cash down payment isn't that exciting I'm so fired up to see you in your town someday soon I'm dead serious it's going to be a fabulous year making car buyers happy by doing so car BIOS or learn from these deals because we're putting them all on camera it would also help to continue highlighting what needs to be fixed in the business and give a few bright spots we find out there either way the bad actors are going to have to clean up their act thank you so much to everyone following the channel your subscriptions your support and the many kind comments are always appreciated well now it's time for me to get back to the best part of my day I'm Kevin hunter until next time take care [Music] [Music]

Channel: Kevin Hunter The Homework Guy

Views: 252,406

Keywords: Car prices, Car prices set record highs, used car dealerships near me, car loan calculator, Auto sales, Used cars, Car, Cars, Car dealers, Automotive news, Car news, Automotive, Vehicle tax, Vehicle fees by state, Auto Shop, Car parts, Auto market, car dealer finance office, rebates for new cars, car loan scam, dealer rip offs, market watch out for this financing scam, what to do when a dealer lied to you, illegal things car dealers do, what to do if a dealership rips you off

Id: 4pn-UaODU50

Length: 19min 30sec (1170 seconds)

Published: Thu Mar 12 2020