How would you respond?

Antwaun DeGraffinreed
I just received this message from a customer this morning. How would you respond to this message? "Antwaun, I had tried to send you a message through the ebay listing on the 2011 Forester and had said that if we couldn't get into the 17's then we would have to walk. Well after finding out what we are getting from insurance that is not totally the case. You had said that $20,000 could be done, if you could get us to a final price of $20,000 (out the door price, tax, and title included) we might be able to swing it. That would also depend on financing, 1.9% or lower ? I mean, lets think about this, what is the incentive to buy a 2011? at $21,000 or even $20,000? when someone can get a 2012 for just a little bit more. I mean as soon as we drive the 2011 off the lot it a one year old car that just took a huge hit in value as compared to driving a 2012 off the lot at the same time.Whats the sales pitch to counter this? Because right now I can't see it. I hope that you can see my point. Thanks for checking on it."
James Bazuik
Clearly he wants the 2011 rather than the 12 or this conversation would be over. You need to ask a few questions. Firstly you don't lose money on a car until you sell it. Ask him if he is planning on trading it in in the next year or two? If the answer is NO than you can show initial savings in the 2011. if he is going to run it into the ground re-sale is now a none issue. So he is saving (initially) which is what he wants. If the answer is yes...tell him to buy the 2012. He will buy a second and third car from you for stealing him the right direction. Consider lifetime value of this consumer. Treat him right, stear him the right direction and he and his friends will make you money
James Bazuik
Auto correction for all the errors
Dennis Galbraith
Antwaun, I assume both the 2011 and 2012 Foresters are new vehicles. Let me know if I am wrong about this, because the answer will be different, New-to-new comparisons across model years is a common problem this time of year. In this case, the Forester had no changes from one model year to the next, and the customer is correct that a 2012 will hold more value than an identical 2011 purchased on the same day. However, the difference is not as great as one might think. She is not going to trade it in when she drives it off the lot, so the relevant amount of depreciation needs to account for a few years and miles. I looked at the trade-in value on kbb.com for a 2009 and 2010 Forester, both the same generation as the 2011 and 2012. I used 40,000 miles for both, and added no equipment. I held the condition constant by selecting the top box for all condition items. The difference in trade-in value was only $1,827. Therefore, that is about what she could expect the difference to be in two years. But that's not the end of the story. If she bought the 2011 for $1,827 less than the 2012, the sales tax would be less by the tax rate times $1,847 (different by state). The annual registration may be more on the 2012 as well. It takes a few minutes to do this kind of evaluation, but with that kind of professional assistance and transparency, you will likely be seen as the right store to buy from in either case.
Antwaun DeGraffinreed
Thank you James Bazuik and Dennis Galbraith for taking time out of your busy schedules to reply to my question. You both made great points and I will indeed use both of these to help close the deal. Dennis they are both new so your answer was right on point. I will keep you posted on how the deal works out. Thanks again!
Bryan Armstrong
Dennis, Nicely done! IMpressive points and tips. I'm taking notes!

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