Automotive News - February 11, 2008 - (Page 24) 24 • FEBRUARY 11, 2008 Biggest Lexus dealer opens used-car store Arlena Sawyers asawyers@crain.com JM gets bigger Facts about the stand-alone used-vehicle dealership opened by JM Lexus Sells 3 brands of certified used cars and trucks Keeps about 500 used vehicles in inventory, valued at about $11 million Is part of a $26 million expansion project that also includes a collision shop scheduled to open in late 2008 or early 2009 manager of JM Lexus. By comparison, a full-sized dealership operated by CarMax Inc., the industry leader in The store has a comfy living-room feeling, with Lexus luxury and cappuccino. The largest-volume Lexus dealership in the United States wants to apply its formula for success to selling used vehicles. JM Lexus in suburban Miami opened a used-vehicle superstore last month as part of a $26 million expansion. The stand-alone store sells only certified used cars and trucks, either under Lexus’ certified brand or the JM brand. The used-vehicle store occupies a former Dodge dealership across the street from the Lexus dealership in Margate, Fla. It stocks about 500 used vehicles, said Jim Dunn, general used-vehicle sales, typically has 300 to 500 vehicles. Dunn said JM Lexus opened the separate dealership because it was running out of space for its used-vehicle inventory. JM Lexus is owned by JM Family Enterprises Inc., a diversified automotive company created by industry pioneer Jim Moran, who died last year. Like the Lexus dealership, Dunn said, the used-vehicle store has a customer lounge that resembles a living room and a cappuccino bar. Its showroom can display as many as eight vehicles. The dealership allows buyers to cancel vehicle purchases within 72 hours and get a full refund. ‘Luxury-car experience’ “We offer a quality product and a luxury-car experience, whether customers buy a Chevrolet or a Bentley,” Dunn told Automotive News. Last year, JM Lexus sold more than 2,000 used vehicles. More than twothirds were used Lexus cars and trucks. Of those vehicles, 80 percent were certified by Lexus’ factory program. Before JM Lexus opened the standalone used-vehicle store, Dunn said, the dealership stocked about 250 used cars and trucks at a time. That inventory is now twice as large. Dunn said the dealership is keeping some late-model certified Lexus vehicles on the new-vehicle lot. That inventory provides “an alternative for a customer who may be looking at a brand-new car and can’t quite reach it,” he said. IN COMPLEX FINANCING, IN-DEPTH MARKET EXPERTISE WINS HANDS DOWN EVERY TIME. 3 levels The used-car dealership sells three brands of certified vehicles: 1. Vehicles sold under Lexus’ certified brand are no more than seven model years old and have fewer than 70,000 miles. They are reconditioned to factory standards and covered by a limited factory warranty of 100,000 miles from when the vehicle was sold as new. 2. JM Signature Certified vehicles of all brands, including Lexus, are typically under seven model years old and have fewer than 70,000 miles. They are inspected and reconditioned to the same level as Lexus-certified vehicles, JM Lexus says. They are covered by a 3-month/3,000-mile bumper-to-bumper warranty from when the used vehicle is sold. 3. JM Certified vehicles typically are seven model years old or older and have higher mileages. They are covered by a 60-day bumper-to-bumper warranty. JM Lexus sells at auction used vehicles it takes in trade that don’t qualify for certification, Dunn says. “The most important service a preowned car is ever going to have is the reconditioning before we put it on our lot,” Dunn said. “If there are any imperfections or any problems with the vehicle (while under warranty), our service department eats the bill. We don’t have that happen very often.” As part of the JM Lexus expansion, the dealership also plans to open a new on-site collision center late this year or early in 2009. Lexus will certify the 50,000-square-foot center, Dunn said. He added: “There is only one place where a Lexus customer wants to take his vehicle if they’ve had the misfortune of an accident. That’s to us.” c If your business is mobility or transport, we speak your language. Because we understand your industry so well, we create unique financing solutions that match your business requirements perfectly. Act now by calling us on: +49 69 7431-0 www.kfw-ipex-bank.de http://www.kfw-ipex-bank.de http://www.kfw-ipex-bank.de
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