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THE DEALERISSUEPLUS: Update on CPO Sales

VOL. 5, NO. 1, JANUARY-FEBRUARY 2017

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By Sarah RubenoffCorrespondent

TORONTO — Treat your used and CPO customers the same way you treat your new-car customers. This seems to be a recurring theme

at dealerships that sell certified vehicles. And the case is much the same at Toronto’s Lexus Downtown.

But the luxu-ry dealership that has been in busi-ness since 2011 takes it a step further, says general manager Christopher Lina.

Lina told Auto Remarketing Canada

the store has an indoor pre-owned showroom that holds more than 50 Lexus CPO vehicles.

How does this help the dealership se-cure used sales? Well, when customers enter the pre-owned showroom, they are often con-

fused, said Lina. They automatically think the cars are new.

“It’s on a different floor than the new cars, but everything looks like a brand-new show-room and new vehicles, mostly because of the stringent CPO specs,” said Lina. “It’s not like an outdoor used-car lot where there is dust, dirt and more. These vehicles are pristine and look like they just came off a car from Japan.”

At Lexus Downtown, 70 percent of the used cars at the dealership are certified — at a minimum.

As for how the dealership’s staff treats CPO guests, Lina says sometimes pre-owned guests need even a bit more attention than new buyers.

“People are sometimes nervous about get-ting a pre-owned vehicle because of the histo-ry,” said Lina. “They really want to make sure they are getting the best bang for their buck.”

Naturally, when a guest comes in for a new vehicle, they know they are getting a full warranty — and the price is not going to differ very much from one dealer to another.

“But every pre-owned vehicle is unique,” said Lina, which makes presentation and ser-

vice even more important. “There are no two pre-owned vehicles

that are the same, and when you can highlight that a vehicle has no scratches, looks brand new and it’s pre-owned, that right away gives them huge confidence that this is the right purchase decision,” said Lina.

What are the best sellers in the dealer-ship’s pre-owned showroom? That would def-initely be the brand’s SUVs — the Lexus RX and the Lexus NX.

“These are by far our best-selling CPO

vehicles consistently,” said Lina. “SUVs have definitely taken over the market. I’m not sure what you drive, but I don’t see any more house-holds that don’t own an SUV.”

Taking customer service to next level

Customer retention is key for Lexus Down-town. In fact, more than 75 percent of their used inventory is directly tied to the flow of lease re-turns and early terminations of leases.

By Sarah RubenoffCorrespondent

CORNER BROOK, NEWFOUND-

LAND and LABRADOR — Corey Stone, gen-eral manager of Fairway Honda — a Steele Auto Group store — says being part of a well-known dealer group has been very beneficial for the rooftop. The dealership, which has been in business over 25 years, has been a part of Steele Auto for about two years now.

“The biggest benefit is inventory manage-ment,” Stone said. “It’s really about inventory. Access to inventory.

“And we find it’s beneficial for being up-to-date, problem solving, reporting. It certain-ly helps us manage the used-car department and the entire store as a whole,” said Stone.

Reputation is key, as well. And the stats back it up. The store has

generally been able to secure 75 percent of its used cars from customer retention and trade-

ins. When asked how his store secures such high customer loy-alty rates, Stone had this to say, laughing-ly: “We sell Hondas.”

But in all hones-ty, the dealer says for the last few months he has depended on the factory remarket-ing programs, such as a partnership with

Enterprise, to secure enough quality used in-ventory for his pre-owned lot.

“We partnered with the local rep from

these programs and have been able to secure some good inventory from them, as well,” said Stone. “So, we have been using some of those avenues to beef up our inventory and to get us the off-brand inventory that we are looking for.”

The dealership also works with Steele Auto Group through an internal dealer group wholesale program, which Stone said has made “a significant and positive impact on sales.”

“It allows us to buy certain products that we might need, specific to customers and cus-tomer requests, or just what we believe will sell if one store is overstocked or has some leases they don’t want,” Stone added.

Dwight Brown, used-car manager at Fairway Honda, told Auto Remarketing Can-ada that before Steele Auto took over, Fairway Honda was known on the used side of things as “a Honda store.”

Fairway Honda had lots of custom-ers looking for pre-owned Hondas, but what about the guests in the market for a different

nameplate or model? “What we’ve

done in the last cou-ple of years and that we are still striving to do with our mar-keting and such is re-ally diversify and of-fer people a full com-plement of inventory of all brands, makes, models; not just Hon-da,” said Brown. ”And

so we are seeing quite a bit of success there. We are getting a lot of late-model vehicles, wheth-er it’s Ford, Dodge, Chevy, and really trying to

expand our presence in the market with much more diversity of high-quality vehicles.”

Lastly, Honda provides a customer reten-tion plan that works to bring customers back into Fairway Honda, as well.

“But we also have to make sure we create great experience to capture those customers and get those customers back and have the invento-ry we need to reach our goals,” Stone concluded.

Fairway Honda is particularly careful to find quality used vehicles as it promotes the Honda factory CPO program at its store.

“We love CPO here. We find it’s an easy transition for us. With our Honda brand, we are probably certifying 50 percent of our used inventory,” Stone said. “And that’s been very good for resale confidence with the customer. We enjoy it, we like it, and we find we close deals because of it.”

At the core of used and CPO sales for Fairway Honda are the Honda Civic and Hon-da CRV. The store does find the trucks do par-ticularly well, too.

“If we have an Odyssey van or if we have a Honda Pilot — these products never sit on our lots for very long. They are in high demand, and hard to find,” Stone added.

As for why customers keep coming back to Fairway Honda, from a manufacturing

point of view, is that store is the only Honda dealership in the market area.

“Our programs are solid. We are very competitive,” said Stone. “On the people side, I would think we have great staff. One of the goals of our store is our managers; we definite-ly are pushing for that customer experience. It’s the number one priority in our store. Cre-ating the best customer experience possible.”

The store is also very “process driven” — they try to follow the same process for each customer, to build value in the “Fairway Hon-da experience.”

“I spend a lot of time as a GM making sure that the atmosphere and morale in our store stands up to par, so that when someone enters our store there’s a great vibe, there’s a great feeling and friendly environment.

“Everyone tries to do that, but I believe we do it consistently,” he added.

The Newfoundland and Labrador-based dealership is also in the middle of building a new facility.

“This is something that we will really try to leverage because we are in a smaller store now trying to accommodate a large customer base,” Stone said. “Our customers are excited, too.”

Fairway Honda plans to open the doors at its new location this September.

How? Well, beyond the obvious, Jiwani says customers “just go online and find Google reviews, Yelp reviews, DealerRater, and see what other people are saying.”

Jiwani said he can think of at least five to 10 of his customers that live much closer to other auto dealers, but they still drive all the way to the closest OpenRoad Auto Group store to purchase their next vehicle.

“They bought from us because of the repu-tation we have, because of these online reviews. And I think it’s paramount right now. You can’t hide those things anymore, so if you are doing well, people will tell people, and if you are not, people will also tell people,” Jiwani explained.

The dealer group’s positive reputation plays right into the success of their programs that promote online reservation and deposits.

“A lot of people, especially pre-owned,

they understand that these cars online are go-ing to be perfect when they get them,” said Ji-wani. “They are getting tons of pictures; they are getting full disclosure; they know every-thing about the car already.”

At OpenRoad, dealership management aims to provide a “no surprises” experience with its online customers. This may mean go-ing the “extra mile” says Jiwani, but it again comes down to providing the customers’ pre-ferred buying experience.

“Some people feel more comfortable buy-ing online in their homes, and we just want to help facilitate that more than anything else,” said Jiwani.

“And again, more than anything else, it’s just to adhere to what the customer wants and listening to what the customer wants and then following through. The main thing is that we follow through,” he concluded.

OPENROAD // continued from page 14

“There are no two pre-owned vehicles that are the same, and when you can highlight that a vehicle has no scratches,

looks brand new and it’s pre-owned, that right away gives them huge confidence that this is the right purchase decision.”

Christopher Lina General Manager, Lexus Downtown

Steele Auto’s reputation, inventory programs boost Fairway Honda

Corey StoneFairway Honda

Dwight BrownFairway Honda

Christopher LinaLexus Downtown

Steele Auto Group’s Fairway Honda. Photos courtesy of the dealership.

Lexus Downtown uses indoor CPO showroom & service to ‘wow’ pre-owned customers

LEXUS // continued on page 18

CPO showroom at Lexus Downtown. Photos courtesy of the store.Concierge desk at Lexus Downtown.

OpenRoad Auto Group’s Mini Yaletown.

LEADING Dealer Groups & Franchised Dealers

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Editorial Calendar Editorial Calendar

International Used Car Industry Report will include data and analysis covering every corner of the remarketing business.

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USED CARWEEK

2017

NOVEMBER 13-17 . LA QUINTA

. CA

A leader in the subprime credit industry, Autonum Capital with over 12 years of experience has a wide range of services and products directed to both dealers and consumers. Serving Quebec, Ontario and now Atlantic Canada, the core business consists of offering subprime financing solutions to consumers. Autonum underwriters are seasoned professionals offering an average response time of less than 15 minutes. In September 2017 Autonum created an industry first by offering same day funding. They have assisted thousands of customers get into a reliable vehicle while helping rebuild their credit score. Autonum also work with dealers to increase sales, with marketing plans that optimize online visibility and maximize digital footprints through targeted campaigns and videos. With the recent launch of the AutonumGO sales platform, consumers are now able to shop for vehicles in their local area with pre-approvals directly online.

Visit www.autonum.ca or call 1.866.243.6235 for more information.




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IN PERSONAuto Remarketing Canada ConferenceIN PERSON

Why Participate?

Data-Driven Content

Better position your business and career with data-driven content that offers actionable solutions for addressing your pain-points. Take advantage of cross-learning opportunities that will arm

you with a 360° view of the used-car industry and the impacts of changing consumer behavior, new technologies, regulations and future forecasting.

Brilliant Speakers

Connect with and learn from accomplished thought leaders and innovative industry disruptors who will engage you in conversations that will ignite your business engine and strengthen your data-

driven decision-making skills. Personalize your agenda by choosing from a variety of workshops, panel discussions, and keynote presentations.

Expand Your Network

Meet with the used-car industry’s smartest and most powerful people and expand your professional network during daily

refreshment breaks, evening receptions, and celebratory social events. And those are just a few of the scheduled networking opportunities on the agenda.

Celebrate Industry Excellence

Recognize the remarketing and used-car professionals whose record-breaking accomplishments are inspiring the rest of the industry. Join in us in celebrating the

Remarketing’s Under 40, Executives of the Year, Profiles in Leadership and other outstanding individuals and companies.

Cutting-Edge Expo Hall

Connect your brand face-to-face with C-level leaders, decision-makers, and influencers who are the driving force behind the remarketing and used-car industry. The Expo Hall is the go-to spot for networking, featuring a curated and engaging experience with today’s cutting-edge solution providers.

Contact us to inquire about sponsorships and exhibiting opportunities.

Manager 26%

Other 21%

Dealer/Principal 20%

Executive 15%

Director 11%

Senior VP 7%

720+12+Hours of

Networking

58 Speakers

22Workshops

9 Keynotes

8Panel Discussions

3 CONTENT TRACKS FOCUSED ON

Retail — Auto Finance — Remarketing

2017 Attendance

Attendees

42

935

Sponsors

IndustryPartners

Exhibitors

26%

21%

20%

15%

11%

7%

AttendanceBy Title

2017



THE WESTIN HARBOUR CASTLE TORONTO

MARCH 2018

T H ESAVE DATE

arcanada.autoremarketing.com



Upload all artwork to sacommunications.com/ad-uploadWomen and Automotive Conference

IN PERSONWomen and Automotive ConferenceIN PERSON

New FormatIn response to our attendees, we condensed the day’s content to fit into a 10 a.m. – 3:30 p.m. schedule to allow more working women to commute to and from the event. Sessions featured high-ranking women who share their leadership journeys and lessons learned via keynote presentations and panel discussions.

Raising AwarenessOne of the reoccurring topics of discussion at the 2017 Women & Automotive Forum was the industry’s need to reach out to young women in high-school and college and share with them to the many career opportunities available across the automotive industry. With that in mind, our goal is to have more students present at next year’s event.

Networking & MentorshipThroughout the day and in between sessions, the women and men who attended the event were busy making new connections, discussion leadership advancement opportunities, and some even took it a step further by establishing a mentorship relationship. Our hope is to make mentorship a growing part of the annual forum.

MARCH 2018

T H ESAVE DATE

THE WESTIN HARBOUR CASTLE TORONTOwomenandautomotive.com

CONTACT US TO INQUIRE ABOUT SPONSORSHIPS AND EXHIBITING OPPORTUNITIES.


Amanda Dunlap [email protected], ext. 121

Jessica Johnson [email protected], ext. 144

Steve Leslie Associate Publisher/[email protected], ext. 156

Joe Overby Senior [email protected], ext. 129

CONTACT US: 800-608-7500 919-674-6020

919-674-6027 (FAX)

autoremarketing.com/arcanada

Cherise Klug Media [email protected], ext. 130

Erin Sayre Sales Support and Media [email protected], ext. 118

Bill Zadeits [email protected], ext. 117

Auto Remarketing Canada is published by

301 Cascade Pointe Lane, Cary, NC 27513

in print / online / in personmediakit.autoremarketing.com/pdf/arc_mediakit_2018.pdf ·...

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