Automotive News - October 16, 2017 - Supplement - S16

16 | OCTOBER 16, 2017
S T E W H A N S E N D O D G E - R A M - C H R Y S L E R - J E E P, U R B A N D A L E , I O WA

FCA's Chrysler Direct program
boosts store's new, CPO sales
Deal clears used cars,
lures new-car buyers
Printed in Automotive News March 6, 2017

John Irwin

jirwin@crain.com

tew Hansen Dodge-Ram-Chrysler-Jeep in Urbandale, Iowa, is addressing the growing glut of used
vehicles on the market by doubling down on its certified pre-owned program.
Since the beginning of the year, the dealership has taken advantage of a program from
Fiat Chrysler Automobiles designed to have
dealers buy its vehicles coming off lease, said
Steve Amos, the store's used-car manager.
Under the Chrysler Direct program, dealerships that buy off-lease vehicles from Chrysler Capital receive a coupon for $500 off a new
vehicle to give to prospective customers.
Chrysler Capital was formed by Santander
Consumer USA Inc. and FCA to provide private-label financial services to FCA dealerships and customers.
Steve Amos, used-car manager at Stew Hansen Dodge-Ram-Chrysler-Jeep, says the $500 coupon
The program is proving to be a boon for the
draws new-vehicle buyers while the use of off-lease vehicles comforts used-car buyers.
dealership's new- and used-vehicle sales,
Amos said.
on FCA's off-lease vehicles since the program
Prospective new-vehicle buyers are drawn
went into effect.
in by the lure of a discount, while used-car
"Payment drives a lot of
"Certified, for us, is a good story to sell,"
buyers feel comforted by the fact that the
where you go. It's about
Amos said, saying it can better allow for cusCPO cars are off lease and not, say, from a
bringing them back in, getting
tomers to come back for service or another
rental-car company.
vehicle down the line.
"Generally, people take care of their
the service and making them
"Payment drives a lot of where you
lease cars, and it's a better story to
Chrysler
a customer for a lifetime. The
go," he said. "It's about bringing
sell for our customer," Amos said.
Direct proves
big thing is to get customers
them back in, getting the service
"It's easier to sell an inspected
to be a boon for
to come back."
and making them a customer for a
off-lease car than it is to sell a
new- and
lifetime. The big thing is to get cusrental that has 30,000 miles on it
Steve Amos, used-car
used-vehicle
tomers to come back."
in six months."
manager, Stew Hansen
sales.
In addition to providing a potential
Stew Hansen, in a northwest subDodge-Ram-Chrysler-Jeep
benefit to dealerships hoping to boost
urb of Des Moines, sold 1,250 CPO vehitheir certified pre-owned sales, the program
cles last year, Amos said, making it one of Fiat
could serve as a way to help FCA address
Chrysler's highest-volume CPO dealerships
since the depths of the recession, jumping to
the glut of off-lease vehicles returning to
in the country.
4.4 million units in 2016, according to Manmarket.
The Chrysler Direct program could push
heim. Off-lease volumes outpaced CPO sales
Amos said the Chrysler Direct program
that number even higher in 2017, Amos said.
by 18 percent last year, the group said in its
helps it to "set a new standard, and it helps
The dealership aims to sell 100 to 110 used
annual Used Car Market Report. The report
on their part to get rid of their pre-owned
vehicles per month, and it is selling on the
did not break down off-lease volumes by
cars."
higher end of that scale this year.
manufacturer. a
Lease originations have grown at a fast pace
The dealership has been relying much more

Table of Contents for the Digital Edition of Automotive News - October 16, 2017 - Supplement