Pricing Objections in Car Sales

Objections to pricing in car sales, or just sales in general, is a common occurrence. As a car sales professional, if you want to hold gross in your deal, it’s crucial to be able to know how to handle this. These are perhaps the most common objections in car sales and has the potential to do a lot of damage. Pricing objections can make you lose gross or even kill deals if handled incorrectly. Some common examples of these types of objections are:

“The price is too high.”

“It’s too expensive.”

“XYZ Dealership can do it for $3,000 cheaper.”

"Is that your best price?"

However, pricing objections like this don’t have to damage your deal if handled correctly. When a customer states “the price is too high,” be prepared to easily overcome it! Pricing objections in car sales repeat, so since you know it’s coming, stay locked and loaded with various different techniques to handle it. In this blog, learn how to handle “the price is too high” and other pricing objections like a car sales pro!

Understand the Why in “The Price is Too High”

In order to properly handle and react to pricing objections, you first need to understand why this objection is so common. Does every other dealership in the country offer a lower price than you? Certainly not! The reality is that customers have been raised to be cautious when buying a vehicle. A majority of the time that you hear “the price is too high,” buyers are likely just testing you. They feel uncertain that they truly are getting the best deal, and need to check. It’s simply a reflex reaction and not a real objection.

Car sales professionals who constantly struggle with pricing objections should recognize this. There's no need to get offended or fall off process because of this. Since it's highly likely just a test, confidence is key. When car salespeople start to fumble or sound unsure, it makes customers lean into objections harder. So, when you get hit with a pricing objection, make sure you stay confident and convey that your buyer is getting an amazing deal.

They Just Want to Win - "The Price is Too High"

Most likely, when you encounter a buyer who will not budge on pricing negotiations, they’re just looking for a win. They just want to feel that they are getting the best price. So, give them a win! When you make it feel like a great deal, it becomes a great deal to the buyer. Typically, pricing negotiations are over a small portion of the total price of the car. So, convey with your attitude that customers are already getting the best price, and watch a lot of no-budge buyers move on!

“(Customer’s name), I guarantee you that if you want the best price, then you’ve found it. This vehicle has all of the equipment and features you want and is a great deal. C’mon, sign here!”

Remember, customers feel that they have to test you. They’re just tossing out an objection to see if something happens, but they’re not serious objections! It’s surprising how often you can move past “the price is too high,” just by having the right attitude! More importantly, approaching each deal with this attitude usually prevents this type of negotiation from happening in the first place!

https://www.youtube.com/watch?v=SXGrbxILhZo

Third-Party Validation

Customers trust third-party websites such as TrueCar and Kelly Blue Book because they're separate entities from dealerships. So, whenever possible, be able to support your pricing with a third-party source. Customer will immediately feel that they can trust your price when it matches a third-party price. If you know a buyer is coming in on a certain vehicle, quickly check online and see if you can find something to back up your price.

On the other hand, customers will often use third-party prices to object to your dealership’s prices. In this scenario, confidence and logic reigns supreme. It’s important to keep in mind that third-party websites are reliable and have good prices. Therefore, when a third-party price doesn’t match your dealership’s pricing, there’s no reason to panic. Simply say:

“TrueCar? Great! If I was buying a car, that’s what I would do as well. Can you pull up the vehicle so I can take a look?”

Assure buyers that they did the right thing and check out the third-party website together. If the buyer has found a similar vehicle with drastically different pricing, there’s almost always a good reason. This could be differences in equipment, features, mileage, etc. Once you can logically explain this to the buyer, they will feel that your price is justified.

Negotiate with Inventory When “The Price is Too High”

Regardless of if the buyer has objected at this step or not, the negotiation process starts during fact-finding. Here, you’re finding out what is important to your customer. This way, you will land them on the perfect vehicle! Hopefully this means that they won’t object to the pricing, but if they do, you will be prepared to negotiate elsewhere!

When you know what equipment and features the buyer needs to have, you can set yourself up for success earlier in the deal. Alongside the vehicle they want, offer a less expensive vehicle with less features and equipment. Then, when a buyer asks for a lower price, offer to take another look at the lesser vehicle. If they truly want those features or equipment, then this is a good way to remind them of why the price is what it is. Before you ever negotiate with price, negotiate with the vehicle. It’s logical! We naturally pay more for extra features and equipment, and buyers are used to this.

“It’s Too Much Money” is Not What It Seems

A common mistake in car sales is assuming the buyer has a problem with the pricing when they do not! "It's too much money" does not always equal a problem with the price! In fact, a lot of the time, this objection isn't related to the vehicle pricing, but the wording of the objection throws salespeople off. Before focusing on the pricing, find out if the buyer has an issue with the payment, down payment, interest rate, or trade value first! Make sure to delve into this objection and find the specific source of frustration on the buyer's end. If you assume things are pricing objections, they very well might become ones. Keep your deals healthy by never assuming the buyer is specifically objecting to the price!

https://www.youtube.com/watch?v=mkUCEFOOlB0&t=2s