Stew 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 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.
The program is proving to be a boon for the dealership's new- and used-vehicle sales, Amos said. Prospective new-vehicle buyers are drawn in by the lure of a discount, while used-car buyers feel comforted by the fact that the CPO cars are off lease and not, say, from a rental-car company.
"Generally, people take care of their lease cars, and it's a better story to sell for our customer," Amos said. "It's easier to sell an inspected off-lease car than it is to sell a rental that has 30,000 miles on it in six months."