CHARLOTTE, N.C. -

When the new-car market has gotten tough, Hendrick Automotive Group dealers have pushed harder on the used-car side of their operations.

And that, director of variable operations Chris Little says, has helped the dealership group realize approximately a 10-percent gain in used-vehicle sales year-to-date.

With used sales soaring in recent years amid a challenging new-car market and the impact of the Japanese tsunami last year, Hendrick dealers have been able to develop strong best practices in the used-car market and this year’s results are proof.

“People got better in the used-car business. It’s been tough when the (new-vehicle) SAAR’s been down at 9 million and with not enough new cars, that whole process has really evolved used-car operations,” Little told Auto Remarketing in an interview on Friday. “You have to be really good in used cars to be profitable, and so we really emphasize heavily that used cars really affects every department in the dealership.

“We’re real big in the CPO side of life. We believe in the programs, we believe in the manufacturers,” he added. “We think that provides a stepping stone to ultimately buy a new vehicle.”

Although Hendrick has seen gains on the CPO side, as well, Little acknowledged that it’s challenging to find the right inventory.

And here’s where the best practices come in handy.

“I think where we’re able to find good quality used cars is through our service department and in our data mining with a company called Xtreme,” Little noted.

If 100 customers come through the service lane, Little explained, 15 to 20 of them are typically in an equity position on their car. The dealer can then offer to pull them out of their current deal, trade in their ride and put them into a new car.

“That pulls customers forward,” he said. “Two things great happen there: we get great quality used car that’s one-owner, usually local, traded in; and we also move a new car. So that’s really fueled us to be able to put used cars on our lot.”

Little added: “There’s a lot of gold in those hills, as they say. But you’ve got to work it the right way.”

In addition to working the auctions and utilizing their relationships with OEMs to generate used inventory, the stores also put a heavy emphasis on generating trade-ins.

“We don’t miss car deals. You got a trade, you got a deal,” he said.  Little added that part of the benefits to getting a trade-in is being able to offer the next customer a vehicle from their own area.

“People like to buy in the areas that they live in. And if you can show them cars that are from that area, it works well," he noted. "So we really put a heavy emphasis on the trades that customers are bringing in.”

Editor’s Note: Stay tuned to the June 1print issue of Auto Remarketing, where we take a look at used-vehicle volumes across the industry, including more used volume perspective from Little.