WOODCLIFF LAKE, N.J. -

BMW North America honored 31 of its dealers Wednesday in revealing the winners of its annual Center of Excellence awards.

These dealerships — out of the 339 BMW dealers nationwide — achieved this status based on their 2011 “performance in customer satisfaction, outstanding brand representation, operational excellence and profitability,” officials explained.

Commenting on the awards, Peter Miles, BMW of North America executive vice president of operations, said, "BMW customers have high expectations of their vehicle and their dealer.

"It takes extraordinary and consistent effort to attain the level of a COE dealership,” he added.

Chiming in, BMW of North America president and chief executive officer Ludwig Willisch noted, "The Center of Excellence winners have done exceptionally well.

"In this Olympic year, these 31 are our top athletes, so it’s fitting that we send them to the London 2012 Olympics as their reward,” Wilisch continued, pointing out that management will be sending these winners off to the U.K. in recognition of their contributions to the brand.

This reward is particularly fitting this year since BMW is the primary mobility provider for the London 2012 Olympic Games, as well as the 2012 U.S. Olympic and Paralympic Teams, officials shared.  

2012 Center of Excellence Award Recipients are as follows:

1.   Hendrick BMW – Charlotte, N.C.
2.   Don Jacobs BMW – Lexington, Ky.
3.   Peter Pan BMW – San Mateo, Calif.
4.   BMW of Bridgeport – Bridgeport, Conn.
5.   Dreyer & Reinbold, Inc. – Indianapolis, Ind.
6.   Kuni BMW – Beaverton, Ore.
7.   BMW of Houston North – Houston, Texas
8.   Schomp BMW of Highlands Ranch – Highlands Ranch, Colo.
9.   Savage BMW – Ontario, Calif.
10.  East Bay BMW – Pleasanton, Calif.
11.  Performance BMW – Chapel Hill, N.C.
12.  Bobby Rahal BMW of South Hills – Canonsburg, Penn.
13.  United BMW of Gwinnett Place – Duluth, Ga.
14.  BMW of Stratham – Stratham, N.H.
15.  Thompson BMW – Doylestown, Penn.
16.  Passport BMW – Suitland, Md.
17.  BMW of Ridgefield – Ridgefield, Conn.
18.  Momentum BMW – Houston, Texas
19.  Advantage BMW – Houston, Texas
20.  Sandia BMW – Albuquerque, N.M.
21.  BMW of Myrtle Beach – Myrtle Beach, S.C.
22.  BMW of Monrovia – Monrovia, Calif.
23.  BMW Gallery – Norwood, Mass.
24.  Desert BMW of Las Vegas – Las Vegas, Nev.
25.  Valencia BMW – Valencia, Calif.
26.  Chapman BMW – Chandler, Ariz.
27.  BMW of Alexandria – Alexandria, Va.
28.  Braman Motorcars – West Palm Beach, Fla.
29.  BMW of Minnetonka – Minnetonka, Minn.
30.  BMW of Greenwich – Greenwich, Conn.
31.  Classic BMW – Plano, Texas

The company also noted that during this year, it will launch a number of new vehicles in the U.S., including the all-new 3 Series Sedan, 6 Series Gran Coupe and the M5 Sedan.

Top BMW CPO Dealers

In a special feature, Auto Remarketing recently highlighted the brand’s top CPO dealers in the country during the 12 month period ending this past November. 

The OEM provided Auto Remarketing with a list of its top 10 certified dealers, and several stores provided insights on what makes them strong CPO dealers and where they are finding certified-worthy inventory these days.

BMW’s top 10 certified dealers for the 12-month period ending November 2011, is as follows, listed alphabetically:

Beverly Hills BMW (Beverly Hills, Calif.)
BMW of Houston North (Houston)
Chapman BMW (Scottsdale, Ariz.)
Crevier BMW (Santa Ana, Calif.)
Desert BMW of Las Vegas, Henderson (Las Vegas)
Fields BMW (Orlando, Fla.)
Momentum BMW (Houston)
Prestige BMW (Ramsey, N.J.)
United BMW of Gwinnett Place (Atlanta)
Vista Motor Company (Pompano Beach, Fla. and Coconut Creek, Fla.)

Chapman BMW

Bob Colabianchi, general sales manager of Chapman BMW, shared a few tips for CPO success, noting that the store is averaging about 75 CPO sales a month.

“We approach CPO kind of as a second franchise. I have got a dedicated sales staff for CPO, and we stock it on marketability and not on what is the cheapest car out there,” Colabianchi noted. “And the CPO sales staff only does CPO sales. Everyone has really bought in the program and believes in the warranty and added benefits.

“Last year, we jumped 77 percent in CPO sales. It is a tremendous amount of growth. We have always done CPO, but last year really started pushing the growth at the dealership,” he added.

As for where Chapman sources CPO inventory, Colabianchi had this to say: “The majority of the inventory comes from our captive BMW Financial Services. About 45 percent of our inventory is trades and lease returns; we have about 65 cars out of our market coming into our market a month. We also go through Manheim auctions.”

Crevier BMW

Continuing on, Martyn Mayhead, director of CPO at Crevier BMW, touted a number of tactics that have made this store strong in the certified marketplace.

“We are successful because of quite a few things … one, the quality of the cars we keep, sales processes and the way we treat the customers; we just bend over backwards for them. If there are any issues, we take care of them on the spot,” he stressed. “The matter of cars we carry also reflects on our character as a business, and the dealership has got a great reputation. But, above all, we are really particular about making sure the cars are pristine.

“To pick out a CPO worthy car, we will first look at the cars ourselves … if it has had any body work or panels replaced, we won’t take it or send it to the service department. The car has to be clean,” Mayhead continued.

“We are averaging about  100 CPO sales a month. Making it in the CPO world really depends on people, products and processes. Pricing is important; you have got to be competitive in the marketplace. But to be consistently successful, it comes down to the quality of the cars and the commitment of the sales people,” he shared.

Mayhead also noted that the dealership sources most of its CPO inventory via lease returns and trade-ins.

Desert BMW of Las Vegas, Henderson:

As far as offering tips for CPO success, Eric Ziegenbein — who is the pre-owned sales manager at Desert BMW of Las Vegas and Desert BMW of Henderson — pointed to a variety of strategies, first emphasizing training.

“Training is so important; we are also successful because of our variety of cars on our lot. We probably have one of the biggest varieties on the West Coast, I would think,” he said. “Having the right amount of inventory is definitely driving the business to our dealership, for sure, especially online.”

Ziegenbein added: “Reconditioning is so important. A dealership has to focus on having the highest level of conditioning and making their cars perfect before they get sold to make it in the CPO world.”

And it appears to have paid off, as Ziegenbein said he is “averaging about  100 CPO sales this month” when he spoke to Auto Remarketing.

In order to find the cars he needs to have such strong CPO sales, Ziegenbein said the dealership looks very hard at “unconventional” sourcing methods.
“We have been running ads and promotions and sending mailers saying we will buy your car and give you top dollar and trying to grow that idea of buying CPO cars off the street. And then, we just find them everywhere, but we definitely focus on more unconventional ways then just getting them at auctions or off lease,” he noted.

Fields BMW

Next up, Steve Higgins, general sales manager/CPO sales manager of Fields BMW, said he is seeing “about 80 CPO sales a month,” and he also shared what makes his store so strong in certified.

“I think it is the commitment to the program. We made a commitment to the BMW certified program right around 15 years ago, when they started,” he explained. “The management and sales people have bought into it (the CPO program), and it makes your life much easier when you sell a car with confidence.”

When it comes to inventory sourcing, Higgins said the store hasn’t had any real problems.

“We haven’t had trouble finding inventory. We are a large enough dealership and we lease enough cars, while also being on BMW full-circle program. We purchase every car coming off of lease,” he noted.

Momentum BMW

Moving along, Momentum BMW pre-owned director Don Schafer offered a bit of insight on how his store has managed to be a robust CPO outlet.

“I think what makes us successful is our people, and also, at the same time, I don’t skimp on the cars. I make sure the cars are done right,” Schafer shared. “You know, with certified cars, there is a little bit of latitude; but if you spend the money to do it right, the customers want that car because it is like a new car, not just mechanically, but aesthetically.”

He also emphasized that as a dealer, it’s vital “to differentiate” one’s CPO offerings from the non-CPO inventory.

“You have to be able to offer them something they aren’t going to get in just a used car. It is imperative that I have something more. You can buy a BMW anywhere in the country,” he stressed. “What makes you different?”

Turning to inventory, Schafer said Momentum finds its CPO supply “from all over.”

“We do a lot of leases that come back to us, and we also purchase a lot from BMW and the BMW auctions,” he pointed out.

Prestige BMW

Over at Prestige BMW, pre-owned manager Michael Morganstein touted the store’s teamwork and widespread support of CPO as being keys to success. 

“I think from the top down, the GM and vice president of the store are very in-tune with the whole strength of the store. We also have a great new and used department, and with the volume of sales we do, reconditioning is extremely important to us. We just work as a team,” he noted.

"We don’t just want to sell a lot of used cars; we want service and parts to be part of the equation. We look at the strength of the store as a whole, and we make sure that every part is earning money. That has been a big key to our success, and a lot of our team has been with us for a long time … and we just kill it with used cars,” Morganstein continued. 

“You have to be on it (CPO) to make it — 24/7. My worth ethic myself, I am hear six days a week, and I go through every reconditioning of every car,” he added. “You really have to be focused and on top of every car. I price every car and change my pricing every 14 days. We are on it nonstop. We are excited about it; that’s our high.”

Delving into specific sales numbers, he said: “We are averaging about 150 cars a month total, and about 50 percent of that is certified.”

When it comes to finding the right cars for CPO, Morganstein counts the dealership as “fortunate”, due to the lease returns that flow in.

“We are very fortunate because we have a big lease portfolio from our new-car clients, and those cars are coming back in the Full Circle Program,” he explained. “And we are also very fortunate that we have a wholesale division and half a dozen other high-end stores … and any of those BMW trade-ins that go to those stores, we get those trades.”

United BMW of Gwinnet Place:

Next up was United BMW of Gwinnet Place, where used-car manager Justin Hoisington told Auto Remarketing that inventory is vital in achieving strong CPO sales.

“To be successful it really takes inventory. Very few dealers go out and find the inventory. We find most of ours from BMW financial services and lease turn-ins. We are just all over the country every day, buying cars on Manheim,” he shared.

Sharing some sales data, Hoisington noted: “We are averaging about 80 to 90 cars a month.”

He continued: “It really is just about inventory. The dealers in our market that are failing, are failing because they have nothing to sell. If you have got the right cars and you price them right, you are going to sell them. I mean, there are buyers out there; you just have to have the cars.”

Vista Motor Co.

Wrapping up the commentary from BMW dealers was Frank Lynch, pre-owned director at Vista Motor Co. Lynch shared with Auto Remarketing some of his best practices for certified success.

“We are averaging around 100 CPO unit sales a month,” he said. “But we have been as high as 120 a month, as an average.”

So what makes Vista Motor Co. so strong?

“I guess it (CPO) is all about building relationships from a previous portfolio … it’s about going to events and getting inventory. We find more of our inventory comes from BMW Full Circle … we have a very large lease portfolio,” he stressed.

“CPO is all about aggressive pricing and great vehicle selection. The other fact is our attrition rate is the best. We have had the same sales force in place for roughly seven years. Our CPO department is a dealership within a dealership … our pre-owned department runs with roughly 26 employees,” Lynch concluded.

Auto Remarketing also spoke to numerous other OEMs regarding their top CPO dealers. The complete feature can be found in the Feb. 15 issue of Auto Remarketing NewsMagazine.