UCN
Used Car News
usedcarnews
6/8/2020
National Quality Dealer Opens Strong By Jeffrey Bellant
karglobal.com
IN THIS ISSUE:
• Auto Finance • Retail Markets
Rush - Dated Material
• Numbers
TROY, Mich. – National Quality Dealer Otto Hahne was already busy when the state of Michigan approved by-appointment sales for auto dealers on May 26. Hahne’s dealership City of Cars is an Internet seller, so it started doing remote sales in April. And business is booming. “We just sold a 2019 Tesla here last week,” Hahne said from his immaculate showroom. “That’s already been shipped to California.” During the month of May in 2019, City of Cars sold 51 units. Last month, the dealership had sold 62 by May 29. “In April, we were only open two Photos by Jeffrey Bellant weeks, and sold 34 units,” Hahne said. “Last year, we sold 39 when BACK IN BUSINESS: Otto Hahne, owner of City of Cars in Troy, Mich. (clockwise from left); his son Evan, a buyer for the store; and Alan Surprenant, general manager (center of group), get we were open the whole month.” ready for in-store customers as Michigan opens up for appointment-only sales. The wholesale market has also exAnnette Chapman, executive di“One thing, as car dealers, this has ploded for City of Cars. Sales on the wholesale side tri- taught us all how to operate dif- rector of the Michigan Indepenpled, said General Manager Alan ferently,” he said. From email ne- dent Automobile Dealers Associagotiations to e-docs, everything is tion, said one of the big challenges Surprenant. “Everybody’s having such a hard changing. More and more custom- for dealers was getting paperwork time getting inventory right now, ers are expecting home delivery, for finished through the Secretary of State, which had been shut down. the prices are skyrocketing,” he said. example. “The Secretary of State had been The COVID-19 crisis has also seen On the retail side, with appointnice enough to open up early just ment-only sales, there are obvious Hahne’s market area expand. “Our business model has changed for the dealers to finalize unprochanges. The dealership is limited to 10 people or fewer. Employees drastically,” he said. “Over the past cessed deals at the end of May,” are wearing masks and Hahne of- six weeks, I would say 60 percent of Chapman said. “The people in the Secretary of fers masks, gloves, wipes and eye our sales have been out of our area. Before that, it would have been 30 State have been helpful in this proprotection for customers. cess.” “So, if a customer doesn’t have ev- percent.” That move helped Hahne deliver The store has an average invenerything, we give it to them,” Hahne said. “We also sanitize our cars be- tory of 220 cars, including highline a car to a customer that was held up units like the Tesla and an $85,000 three weeks because of the title. fore they go.” “We can’t believe how many cusHis son, Evan, a buyer for the Mercedes G-550 that sold before store, also showed how he places the shutdown. It typically sells 50 tomers waited for their cars,” he a clear blue film over the steering retail and 100 wholesale units per said. When the state offices opened, the wheel and shifter as additional pro- month. There were still challenges, even dealership had 94 titles ready to go. tection. “People still need cars. Everybody Hahne wanted to wait until June as cars were selling. “We had cars we sold over the past is saying that the economy is in for a 1 before officially opening up his physical showroom to make sure five or six weeks, but we didn’t have rough ride,” Hahne said. “You can’t titles,” Hahne said. tell it here at City of Cars.” everything is compliant first.
Announcing the winners of the 2019 Auction Excellence Awards. See back cover for more details.