From a recent email from an RSC member:
An auto dealer client has a vehicle on his lot he wants to move. Yes, he wants to move all his cars, but this one has been sitting there a while.
The vehicle might work well for me/the station. How would a vehicle barter program work? Any examples? Pitfalls?
What auto trades have worked for you? Looking forward to reading your replies - thank you!
I've trade several vehicles at different stations over the years. Do you want to trade a lease or trade to own?
If you trade for a lease, you may be responsible for a cash payment at the end of the lease due to high mileage or excess wear and tear.
Most car dealers want twice the sticker price of the car in trade, but, like everything in life, that's negotiable. Have a written trade agreement spelling out who is responsible for paying taxes, title and licensing fees before you take possession of the vehicle.
Be aware of not setting a precedent with your customer. You might want him to buy the ads next year and you wont need another car yet (one hopes). I lost a customer years ago because after doing a trade for advertsing, he wouldnt sign another contract unless it was at least 75% trade. I have done trade with many businesses, just be careful to not spoil the account for yourself. Commission on trade? Not so great.
You're right Daryl. I would probably not do it for this reason.
The best trade plan is a lease. The dealer takes the money he would pay for equivilant air time and turns it over to his lease department. The station runs air time to match that value. At the end of the period, usually a year. the dealer gets the car back and the station renews the contract with a news car.
Also, you can upsell
him for cash for holiday packages or sports, etc.
