In the years following the recent recession and new-car sales decline, used-car supply was in a pinch. So finding cars for certified pre-owned programs often proved to be challenging.
Dealers had to get creative to find CPO-worthy vehicles for their lots.
However, used-car supply — like new-car sales — has rebounded in a big way in recent years.
So how has CPO sourcing strategy changed as a result?
That’s the question we posed to top-selling certified pre-owned dealers for Fiat Chrysler as part of the Best CPO Dealers issue of Auto Remarketing.
“We’re continuing to see used-car prices flatten out from what had been record highs, because the supply is increasing. With all the online options to acquire inventory, we continue to identify more sources to supply our growing CPOV program, such as Chrysler Direct,” Michael Sego, executive vice president of Jeep Chrysler Dodge Ram of Ontario, said via email.
“This website lists all the lease returns throughout the entire country, and is a good source for non-rental vehicles with fairly low mileage,” he said. “One of the keys to being competitive in today’s CPO market is to utilize the technological tools available, which emphasize speed and efficiency.
“Lastly, it is simply about creating awareness of your CPO program and the benefits of it, to be genuine when dealing with your guest and simple and transparent in your pricing ... to make the process easy and straightforward.”
At Bill Luke Chrysler Jeep Dodge — the automaker’s No. 1 CPO volume dealer and Auto Remarking’s 2015 CPO Dealer of the Year — dealer principal Don Luke said: “This is a good tool to sell more product. We certify every Fiat Chrysler product in our inventory that qualifies.”
Yark Chrysler-Jeep-Dodge in Toledo, Ohio ranked seventh on the FCA list with 977 certified sales last year.
“CPO inventory has become a ‘core’ product and our purchasing strategy definitely targets these units,” said Bob Lutz, inventory manager at Yark Automotive Group
Steve Amos, the pre-owned manager at Stew Hansen Dodge City Jeep, said: “The biggest part of keeping up with the certified program would be having the correct processes in place to get them from raw trade in or purchase car to on the lot in fast and efficient way looking the part and being ready to be driven home.
“Having a large selection of FCA certified products helps us hit our monthly goals of selling at least100 certified vehicles and continuing to grow as a business by putting customers in certified cars with great certified program warranties.”
The complete top 10 CPO dealers for FCA is below, along with city and 2016 CPO sales:
1. Bill Luke Chrysler-Jeep & Dodge (Phoenix) 2,989
2. Stew Hansen Dodge City Jeep (Urbandale, Iowa) 1,249
3. Airpark Dodge Chrysler Jeep (Scottdsale, Ariz.) 1,201
4. Jeep Chrysler Dodge of Ontario (Ontario, Calif.) 1,123
5. Route 46 Chrysler Jeep Dodge (Little Falls, N.J.) 1,040
6. Westbury Jeep Chrysler Dodge (Jericho, N.Y.) 1,034
7. Yark Chrysler-Jeep-Dodge (Toledo, Ohio) 977
8. Mac Haik Dodge Chrysler Jeep (Houston) 967
9. Ken Garff West Valley Chrysler (West Valley City, Utah) 966
10. Westgate Chrysler Jeep Dodge Ram (Raleigh, N.C.) 964