Dealers Using Aftermarket Products to Move Cars

If you're feeling the ripple effects of a slow new car market, it might be time to explore new ways of tapping further into pre-owned sales. An automotive aftermarket provider in Indianapolis recently discovered how to increase business by teaming up with pre-owned dealers. The relationship is doing more than moving aftermarket products and services, as it also helps auto dealers increase profits and move inventory. The company, Certified Custom Vehicles, offers customization packages to dealers that include everything from window tint to custom electronics-in some cases, right at the time of auction.

"Certified Custom Vehicles builds unique cars, trucks and SUVs that are showroom ready," explains Michael Schwartz, president. "We draw new traffic to dealers' showrooms by offering a unique look and features that allow customers to make a personal statement."

Schwartz's company allows dealers to upgrade with an accessory package at the time of auction by offering upgrade packages on-the-spot. Alternatively, dealers can purchase unmodified vehicles, then later have them modified if they're unable to produce an interested buyer.

"In addition to offering ready-made front line vehicles, we also provide custom packages for dealers to match the latest market trends," Schwartz says. "We can take a pre-owned base model Mustang [and turn it into] a very unique vehicle that absolutely pops on the dealer lot ... all at a very affordable price. Dealers continually tell us these vehicles sell twice as fast as stock vehicles."

Bob Robichaud, a dealer based in Indianapolis, attests to Schwartz's claims.

"The Certified Custom vehicles I purchased at the auction increased my traffic and gross profit [by] about 32 percent on average, versus the stock vehicles I typically buy," Robichaud says. "These Certified Custom vehicles are giving me a great advantage over stores down the street, but more importantly, are motivating customers to buy in this tough market."

Schwartz says it's as much about updating as it is "pimping" vehicles out.

"We handle the entire process of upgrading their off-rent or off-lease vehicle to meet the latest market trends as they await sale at auction," he explains. "This provides a better choice of vehicles at auction for dealers and ultimately better resale value for the manufacturer."

The company plans to expand its concept to other major metropolitan areas throughout the U.S. in 2009.