Things I learn with every deal

[Ian 15]

I've only been selling for a short while, and confess to having lots to learn. I thought this thread could be useful to post - as the title says - thins I (we) learn with every deal.

 

A week ago a couple appeared on the yard at quarter to five, looking at a very nice diesel Picasso we have for sale. Ten minutes later I'd persuaded them that buying it was the Best Thing In Their Life. They asked how much deposit I would take, and I said £100. £100 later I asked when they wanted to collect their car and pay the balance..."we're waiting for our insurance payout, we've wrote our car off". OK, thinks, I, not a big problem.

 

The gaffer gets back and although pleased, says be ready for them to cancel. Sure enough, this week they did - they have only been offered £800 for their car, leaving them £1,200 short. So now the deal's fallen out of bed and they're borrowing a relative's motor that is unused anyway.

 

 

[GreenGiant 287]

Yeah, had many a situation like that over the years.

We've all had the punters who will put a small deposit on one at your place and then troll round to the oppo's site and do the same there, decide overnight which one they prefer and then, the next day, a flood in the loft, sudden unexpected redundancy, or a very sick relative will appear on the scene and your car can no longer be afforded... "sorry 'bout that, but we need the money..."

It's difficult but, fwiw, this is how we do it:

Firstly, deposit is a minimum £500. If that is no problem, this lets you know immediately the level of commitment is high.

Secondly, if they ask if it is refundable, this also lets you know immediately the level of commitment, but not in such a good way.

We ask why they would need it to be refunded and suggest that, if they can think of ANY reason why they wouldn't wish to proceed, then don't put down a deposit in the first place.

Thirdly, the "can I put a holding deposit on it and let you know Monday?" is always, ALWAYS answered with a no and an explanation that, if someone comes in before then and puts their flexible friend on the desk wanting to buy the same car, I'm going to take their money. If I tell them they can't buy it because there's already a deposit on it and you then tell me you don't want it either, I've lost the sale twice. So you either buy the car now (£500 dep) or take your chance and come back Monday.

I don't think I've ever lost a sale because of this.

[umesh 336]

We've all that - it does happen ! As Green Giant says .. Reasonable deposit - and explain that its not a holding deposit but commitment to buy AND its non refundable you soon find out how serious they are. to be honest 90% of the time you get a feeling with the customer - many,many times old fashioned but a handshake deal works well with most of my customers !

[Gavin@Rousdon 137]

Pretty much what Green Giant says, in my eyes a car isn't sold until a decent deposit has been taken. I refuse to take 'holding' deposits over the phone from customers who are a few hours journey away but insteed will will 'hold' the car from the time a customers journey starts until the time they arrive, the last thing I want is to take a car off sale on a Tuesday and wait until Saturday for them to view it.

Other than that I operate a 'first come, first served' policy which I find is the fairest way. The art is making sure you control the process and not the customer.

[Ian 15]

Thanks for the feedback, advice and encouragement. At this stage in my career I'm frightened to death of deals falling out of bed so hate to push potential customers. I think I'll up my £100 deposit to £200 though, that's a bit more of a commitment. Problem is most of our cars are less than two and a half grand.

[Andy Entwistle 96]

Don't worry Ian, its part of life, if every deal we shook on went through, we'd all be much much richer than we are ..... 

[Ian 15]

Cheers Andy, a couple in the bag today made me feel a whole lot better.

 

On today's second deal I learnt that some buyers are frightened to death of used car sellers, he seemed convinced I was trying to fleece him, but some re-assuring words and a cuppa calmed him down. I even delivered it for him!

[Autolink100 34]

I agree 100% with the comments about a decent deposit, I always ask for a minimum £500 and it rarely causes a problem. Sometimes they genuinely don't have it in their current account and that is fine, I'II take £300 as an absolute minimum. I find that  sort of figure usually guarantees a bit of commitment and I have very few deals fall out of bed.

 

 

[Ian 15]

What sort of value are your motors though?

[used car seller 8]

one thing ive learnt over the years, NO car is sold until it drives off the forecourt, a thousand and one things can [ and ive seen it ! ] happen, never count your chickens until theyre all in shed or something somebody once said , probably me, i cant remember

[Ian 15]

Agreed - nothing goes in the 'sold' book until I've waved it bye-bye off the pitch.