Objection Handling: Expert Tips for Handling Objections

Although related, objections and obstacles are not the same. Objections typically refer to specific concerns or hesitations that a customer raises during the sales process. They are a common challenge that can be overcome with preparation. These could be related to price, product or features, and can be addressed by providing additional information before moving on.

Obstacles, on the other hand, are broader challenges that can hinder the sales process such as, "May I walk around by myself, or I do not want to test drive a car." These are distinct issues and often require a more strategic approach.

There are three main reasons why people raise objections: fear, defense mechanism, and conditioning. Fear is the primary driver. Customers are often afraid because they are asked to make a significant financial decision, despite receiving value. This fear can stem from various concerns, such as committing to a long-term payment plan or parting with their money. The second reason is an elevated defense mechanism. This is an internal response that causes customers to become overly defensive, especially during the visit to the dealership. Gradually alleviating these defensive postures is crucial. The third reason is conditioning. Customers are often accustomed to raising objections; they perceive it as the norm rather than simply agreeing to purchase the car.

There are essentially three major objections. The first revolves around price or payment, as customers may feel the price is too high or the payment is unaffordable. The second concerns trade value, with customers believing they are not receiving enough for their trade-in. The third involves the need to think about it, as customers often want to go home and consider their options. While there are other objections, such as being the first place visited or wanting to consult with an advisor, these are not as common.

Customers bring up these three objections for several reasons. First, they're often the first ones that come to mind and seem the most logical to customers at the time. For example, if you provide them with a price, they might easily respond that it's too high, or when you offer a trade value, they might say it's too low.

Another reason people object is that they're accustomed to getting their way. For instance, when a customer says the payment is too high, many of us are trained to respond by asking, "What payment did you have in mind?" This inadvertently gives control to the customer and instead of being in control of the sales process, they relinquish that control. It's necessary to maintain control and not give in to every customer objection. Instead of immediately asking the customer for their desired payment or trade value, it's important to have a reasonable response ready to address their concerns.

Should they be afraid of us as salespeople? The answer is yes, they should. Why? Because we are trained professionals. We excel at what we do, engaging in sales daily, whereas most people only buy a car once every four or five years. Customers expect us to be adept at handling objections and negotiating. However, many of the tactics used to overcome objections in sales involve pressure, which are not always be beneficial.

When you ask someone to buy, they don't usually say yes right away. This is normal. While some may agree immediately, most will say no and raise an objection. Our aim in sales is to make objections easier to overcome. We want objections that we're familiar with and can handle effectively. When a customer says, "I want to go home and think about it," it indicates that our presentation may not have been compelling. On the other hand, objections like, "The price is too high," or "You're not offering enough for my trade," signal that the customer is likely to buy. Understanding these objections and how to address them is essential.

We should welcome objections in car sales. They're normal and expected. Having prepared responses is crucial; otherwise, objections can derail the sale. Without proper responses, you'll struggle to close deals. Customers might say they want to think it over, compare prices elsewhere, or come up with other excuses. If you're not trained to handle objections, you'll find it challenging to overcome these hurdles. It's important to stay strong and confident in the final stages of the sale to successfully close deals.

It's essential to be ready for objections and have a response. Objections are a normal part of sales and having prepared responses will help you overcome them.

Seven Key Steps To Handling Objections:

1. Listen to the objection.
2. Empathize with the customer.
3. Restate the objection.
4. Isolate the objection.
5. Respond to the objection.
6. Confirm your answer.
7. Write it down.

4 Reasons Why Customers Buy a Car

Most in our industry don’t understand they buyer and truly confuse their buying priorities. When this happens the sales process gets misused and sales are lost. Most think the number one reason a customer buys a car is the salesperson. And that is not true. The number one reason why a customer buys the car they buy is the product. They like the car. Nobody buys a car they do not like, just because they like the salesperson. This is why the qualification step in the sale process is so misused. When we ask to many questions as salespeople we scare the customer, then they get scared they get defensive and when they get defensive they lie Most sales are lost because the salesperson put the customer on the wrong car based on bad qualification questions that forced the customer to lie.

The second reason is now the Salesperson. They like the salesperson. If the salesperson has done a great job selecting the right car, but the customer does not like the salesperson the customer will just go elsewhere to buy the car. And in reverse, nobody buys a car they do not like just because the like the salesperson.

The 3rd reason is the Dealership. Buyers want to purchase from a dealership that will treat them fairly and support them through their ownership period. That is why the Service Walk is so critical in your sales process. It introduces them to the dealership and what they can expect in the way of service after they purchase their new vehicle. Knock the service walk out of the park and you greatly increase your chances of selling them a car.

And finally, The 4th reason is the price. Everyone wants a good deal and most also know that you need to make a profit. Sell them on the first three priorities and, in most cases, the price will take care of itself.