For El Monte, Calif.-based Longo Lexus, which has ranked among the automaker’s top 10 stores for certified pre-owned sales the past two years and three of the last five, a key driver of success is training the dealership staff on the value of CPO.

“Especially Lexus — they have one of the best CPO programs around,” said James Nguyen, the store’s preowned manager. “So, we’re building value, and that’s one of those things that can help us sell the car much easier.”

That staff training starts with a philosophy that runs through Penske Motor Group, which includes Longo Lexus and three other dealerships.

“We have a Penske way philosophy of taking care of the guests first,” Nguyen said. “Take care of their needs instead of just trying to sell them.”

Find out what the customer needs in a vehicle, what they’re focused on and build value from that.

“It’s a constant reminder and a constant training for our team to be successful at what they do,” Nguyen said. “And it’s been working out pretty good.”

So well, in fact, that Longo Lexus has been selected as Cherokee Media Group’s 2024 CPO Dealer of the Year, an award presented by CarOffer.

The dealership will be recognized during the Used Car Awards luncheon, also sponsored by CarOffer, on Nov. 19 at Used Car Week, which is being held at the Westin Kierland in Scottsdale, Ariz.

Nguyen will also participate on a UCW panel sharing “Best Practices from Best CPO Dealers” on Nov. 18.

The panel of dealers will no doubt address what has been among the biggest challenges in CPO this year: finding the right supply.

Nguyen said Longo Lexus started 2024 with strong CPO sales thanks, in part, to solid inventory during the first half of the year.

But the supply is beginning to “taper off,” he said, with lease return levels at “almost next to nothing,” given the pandemic era lease slowdowns that began three years ago.

The off-lease pipeline has “hit that full stop, basically,” Nguyen said.

“So right now inventory challenges, I’m sure for Toyota and Lexus, you can see that is the most challenging thing (in) being a pre-owned manager,” he said. “Just trying to get inventory.”

But, like any savvy dealer, Nguyen and his team have adapted.

They’re turning to acquiring cars that arrive on the campus they share with Longo Toyota, which was the 2012 CPO Dealer of the Year.

And this is where the service drive comes in handy, as the pre-owned department works with the service team to find acquisition opportunities.

For example, if a repair or service cost is more than the guest wants to pay, the staff will offer to instead appraise the vehicle and get that customer into a new car.

The service lane can be a prime avenue to find consumers interested in exiting their current ride for greener pastures, so to speak.

“It’s pretty good set up for getting extra inventory that we desperately need,” Nguyen said.

It’s a win-win, much like CPO itself.

“CPO honestly is a win for every party,” Nguyen said. “It wins for retail, the front sales team. It wins for the finance department, because you can make backend (revenue). It also wins for fixed ops. It feeds the service department, gives them work. It feeds the parts department.

“It’s a very comprehensive win for the whole dealership,” he said. “I think the health of the CPO program for every dealership is very important for profits and growth.”

In addition to being a win for all departments of the dealership as well as the automaker itself, CPO can bring value to the consumer.

That’s something Nguyen and his team emphasize to customers.

The value is shown through sharing the inspection points, the reconditioning steps, the warranties, the maintenance plans, the trip protections offered through CPO.

That helps build awareness for a customer that perhaps isn’t sure of exactly what they want to buy but has a certain budget they want to meet, Nguyen said.

Showing all the processes that went into certifying a car can help build confidence in the buyer.

“The guests see a lot of value in that they don’t have to worry about the car for the next couple of years and just buy the car and drive it with peace of mind,” Nguyen said.

The Longo Lexus team join a group of distinguished dealers to have won this award. The full list of Cherokee Media Group’s CPO Dealer of the Year honorees over the years can be found below.

2023: Rick Case Volkswagen
2022: Andy Mohr Ford
2021: Roger Beasley Mazda South
2020: Mullinax Ford
2019: Cavender Toyota
2018: Trophy Nissan
2017: Kia of Irvine
2016: Fletcher Jones Motorcars
2015: Bill Luke Chrysler Jeep Dodge & Ram
2014: Hyundai of New Port Richey
2013: Galpin Ford
2012: Longo Toyota
2011: Karl Chevrolet
2010: Paragon Honda/Paragon Acura