The psychology of selling a car – 5 tips to get a better price

Tip #1 Build a good relationship with your customers

A good relationship starts with learning about each other. It’s vital that you learn the names of your customers. From the moment you get a lead and first contact them until the final sale, make sure to always address them by their name and try to tailor the experience to them and their interests. 

Building trust is the key to successful business. In fact, according to this survey, 60% of customers whose shopping experience was personalized are likely to bring in repeat business. There is no better advertisement than word of mouth, and it’s free! 

Next step is learning about their needs. You need to ask genuine questions about their situation, such as what they are looking for, their financial situation, their previous car and car usage, etc. 

For example: Will you be using this car for work or for weekend trips? Are you going to be driving the car, or is it going to be a car shared with the whole family? Do you have children or pets?

This way, you can build a genuine relationship with your customer, getting to know them and their needs and make them feel like you truly care about them being happy with their purchase, rather than looking at them as just a number.

Tip #2 Know your product

This may sound obvious, but it isn’t as easy as it sounds.

You need to be able to show the customer their dream car just based on a couple of questions. Besides their dream car, you also need to show them similar options that will persuade them that the most expensive dream car is what they truly need.

You need to be knowledgeable about the technical specs, car mileage, the previous owner, and anything else the customer might want to know. Remember that they will have likely seen your website (and the websites of your competitors), so they already know the basic things. What they want from you is your professional advice and expertise.

What happens when you don’t know the answer? Be honest about it. It’s never a good practice to lie to your customer. If there is something you don’t know, you can always check and get back to them. It shows your genuine approach and prevents any misunderstandings from happening.

Tip #3 Use nonverbal communication strategies

There are ways to communicate a message other than just words. Psychologists have done extensive research on the gestures, posture, eye contact, tone, and so on, which indicate how interested or comfortable your customer is.

First, make sure to keep eye contact. Be an active listener, try to nod and smile when they are talking. Ask questions not only about their car needs, but also about them as a person. Where they work, what their hobbies are, all of these things will make them feel at ease. They will also give you hints for your sales pitch

Make sure you balance “selling” with “befriending”. Of course, if you only chat and never get to the sale, that is no good either. However, if you push the sale too much, the customer might get overwhelmed and lose interest. 

It is also important to treat every customer with respect. Every customer should be treated equally regardless of how knowledgeable or interested in cars they are or how rich they look. A businessman in a suit might be less likely to actually make the purchase than a mom wearing jeans. Do not assume anything about your customer; instead ask! 

Tip #4 Know how and when to talk about the price 

Buying a car is a big purchase. Most people aren’t going to decide to buy a car in 5 minutes. It also comes with a lot of different types of costs.

Be open about the costs associated with the purchase. Your dealership takes a fee and the customer also has to pay tax. The customer should know the costs when making their decision, not when they are about to sign the deal.

So when should you mention the price? The answer is simple: When the customer is ready to buy.

You go for a drive, your customer enjoys it, they can imagine themselves owning the car and they are ready to buy. Now is the time to start discussing different purchase options. Try to be as open and as helpful as possible. Can’t afford the car? No problem, you can discuss paying monthly or trading in their old car.

Another thing to remember is that they have likely also received offers from your competitors. So it is important that you are honest with them about the price instead of trying to overshoot or sell for as much as possible. 

If they feel comfortable with you, they will tell you the offer they got from your competitor. It is then your job to convince them that the extra money they are paying will be worth it. Do you offer warranty or after-sales service? Tell them all about it! 

It is also possible that they will go to other dealerships before they make their final decision. This is your chance to shine. Show them that you were more honest, more willing to listen to their needs, and that you care more than your competitor, and many will be willing to pay the extra buck for your service.

Tip #5 The sale isn’t done with the payment

As we’ve previously mentioned, it is vital to build good relationships with your customers in order to get repeat business

Feel free to contact them after a couple of days, making sure that they are satisfied with their purchase. Answer any questions they might have after having used the car for a while. You can even ask them for a review or to leave a comment on your website. Follow-up calls are a great way to show that you care about your customers as well as a way to get feedback on your service.

Nowadays, people have access to the internet and many check reviews before even checking what cars you offer. Try to ensure that your customers are actually happy with their purchase so that they talk about their experience in a positive way. The good word is sure to spread!

In this article, we have discussed 5 tips to help you boost your sales. The competition is tougher than ever, with many online and offline dealerships on the market. The cars that you handle will likely be quite similar, so the best way to differentiate yourself from your competitors is to provide genuinely good service!