Where top Hyundai dealers find CPO cars
As part of our “Best CPO Dealers in the United States” edition this winter, Auto Remarketing reached out to a few of the top-selling Hyundai dealers about certified pre-owned supply.
We asked them to share some of the strategies they use to make sure there’s enough CPO inventory on the lot.
“We are in a fortunate situation that we create our own CPO inventory,” said Scott Fink, the president/chief executive officer, Hyundai of New Port Richey — Hyundai’s top-selling CPO dealer and Auto Remarketing’s 2014 CPO Dealer of the Year.
“We trade our Hyundai owners out of their vehicles aggressively in an effort to accomplish two goals: No. 1. Sell another new Hyundai. No 2. Create another CPO Hyundai that we can market. This strategy enable us to ensure we have a strong inventory from sedans to crossovers to take advantage of the CPO demand in the market place. We have yet to have to go to the auctions (on site or online) to purchase inventory.”
Over at Lester Glynn Hyundai — which ranked fourth with 771 CPO sales in 2015 — president Adam Kraushaar said: “First strategy is to actively work the service drive. We are very successful in upgrading owners of 1-3-year-old vehicles into new vehicles. Generally, those trades are extremely well maintained. We can put a more aggressive ACV because we know the reconditioning cost will be minimal.
“Every lease turn-in goes through the process to determine if we want to own the car. First we try to do that at the time the person is buying a new car. If it doesn’t make sense we ground the car and get a market based price … Finally, our fleet of loaner cars come out as certified.”
At Rick Case Hyundai in Plantation, Fla., general manager Leroy Larson says that an ideal scenario would be for the store to get all its supply in as trade-ins and then sell each of those customers a new car, but he acknowledges “that’s not realistic.”
However, the store has found success through a number of methods, including reaching out to its customer database and offering to either trade those customers out of the car or buying their cars outright, even if the shopper doesn’t buy a new car.
In fact, Rick Case Hyundai advertises that it buys cars from consumers.
The dealership also works the service lane to find ideal trades, Larson said, and offers those consumers high values on the trade or low purchase/lease payments. They may also turn to the factory sales in the auction lanes
At Jim Ellis Hyundai, Wesley Ellis — who is the vice president of Jim Ellis Hyundai/ Jim Ellis Volkswagen of Atlanta — said the store’s strategy is to hit auctions, its own internal database and sourcing the waiting room of its service department.
Finally, Lenny Checheris, general manager of Luther Bloomington Hyundai, detailed his store’s strategy, a bit of which involves focusing on off-lease.
“We have always been strategic with our acquisition of pre-owned Hyundais. We have found success by acquiring vehicles through live Hyundai auctions, lease returns and using sourcing software in our service department,” he said. “We also made a decision in 2011 to really focus on leasing. Lease returns have been our best source for late-model, quality Hyundais. Most lease return vehicles were bought and serviced here, which provides a great history for our future Hyundai owners.”
The complete list of Hyundai’s top 10 CPO dealers for 2015 is as follows:
1. Hyundai of New Port Richey 1,344
2. Rick Case Hyundai (Plantation) 1,104
3. Hardin Hyundai 802
4. Lester Glenn Hyundai 771
5. Jim Ellis Hyundai 763
6. Doral Hyundai 724
7. Planet Hyundai 703
8. Conicelli Hyundai 612
9. Hyundai of El Paso 604
10. Luther Bloomington Hyundai 588