NADA Releases New Video on Dealer Franchise Laws

By: Auto Dealer Monthly

McLEAN, Va. — New-car dealer franchise laws protect consumers during safety recall and warranty claims, create price competition and benefit automakers, says the National Automobile Dealers Association in a new animated video released Wednesday as part of its “Get The Facts” initiative.

“Buying a car is a ... complicated purchase with financing, titling, registration, insurance and trade-ins. Because cars are expensive and car buying is complex, governments set up dealer franchise laws to protect consumers, and dealers make this complex process simple,” the video explains. “But recently, some have suggested weakening these laws or eliminating them to bypass dealers completely — a bad idea and nowhere simple as it sounds.”

The new video explains the central reason why states adopt dealer franchise laws: to protect consumers and provide a competitive business environment.

The dealer franchise network is also supported by automakers as the best and most efficient way to buy, sell and service cars in the marketplace, and “dealer franchise laws just make good business sense,” according to the NADA.

“Factories get to focus on design and building great cars, while dealers invest billions in showrooms and websites to compete for local business and sell cars at a great price,” the NADA said in a statement. “And locally owned dealers

have a huge positive impact on local communities—local businesses that create more than 1 million jobs nationwide, and provide more than 15 percent of local tax revenue.”

NADA’s “Get The Facts” initiative is designed to inform the media, opinion leaders and policymakers about the numerous benefits of America’s franchised new-car dealers through a new webpage and variety of multimedia resources available here.

Resource: 
NADA Releases New Video on Dealer Franchise Laws
NADA Releases New Video on Dealer Franchise Laws

Read More

Survey Uncovers Most Common Car-Buying Objections

ORANGE COUNTY, Calif. — An informal online survey conducted by Joe Verde Sales & Management Training Inc. found that the most common car-buying objection (37%) before the salesperson has a commitment was: “I’ll think it over and get back to you.” The survey, conducted in 2013, garnered responses from 153 salespeople.

After the salesperson has a commitment and is negotiating, the three most common objections are: “I’ll think it over and get back to you” and “payments are two high” (both at 20%), and “not enough for my trade” at 19%.
 
The survey asked: “What is your most common car buying objection today before you have a commitment?” Here’s a list of responses by percentage:

• “I’ll think it over and get back to you”: 37%
• “I want to shop the competition”: 25%
• “Not enough for my trade”: 9%
• “I need to check with someone else”: 7%
• “It’s too much money”: 7%
• “I can buy it for less down the street”: 7%
• “I’m not sure this is the right vehicle for us”: 4%
• “The payments are too high”: 3%
• “I don’t have any more to put down”: 1%

 
For comparison purposes, the survey also asked: “What is your most common objection from car buyers today after you have a commitment and are negotiating?” Here’s are the top responses by percentage:

• “I’ll think it over and get back to you”: 20%
• “Payments are too high”: 20%
• “Not enough for my trade”: 19%
• “The price is too high”: 14%
• “I need to check with someone else”: 12%
• “I can buy it down the street for less”: 8%
• “Too much down payment”: 5%
• “Term too big”: 1%
• “I’m not sure if this is the right vehicle for us”: 1%

The same survey questions were posted on the site in 2012 and 156 people responded to each. The most common objection received by salesperson before they have a commitment was, again, “I’ll think it over and get back to you.” However, the response was almost double at 38%.

The question “What is your most common objection from car buyers today after you have a commitment and are negotiating?” had slightly different responses in 2012 versus 2013. The top response was “not enough for my trade” at 23%, followed by “payments are too high” at 19%, and “the price is too high” at 17%. “I’ll think it over and get back to you” was in fourth place at 15%.

“People tell you ‘No’ a lot when you’re closing. They’re nervous about spending 20 or 30 grand, and they didn’t know you, like you or trust you an hour ago,” said Joe Verde, president of Joe Verde Sales & Management Training, Inc. “So saying ‘Yes’ in just an hour means really going out on a limb for most customers.

“That’s why you have to make it as easy as possible for them to agree to purchase. If you close correctly, you’ll never ask the standard ‘Will you buy today’ question. Not only that, your negotiation will be about helping themfit this new vehicle they love into their budget, instead of whether you can ‘make them a deal today.’"

---

Resource: 
Survey Uncovers Most Common Car-Buying Objections
Survey Uncovers Most Common Car-Buying Objections

Read More