Hyundai dealer in certified used car programme

Dubai:

The trend of carmakers and their local importers trying to get a better handle on the secondhand automotive market continues with Juma Al Majid Motors, the Hyundai dealership, opening its first certified dedicated facility in Dubai.

The 11,000 square foot pre-owned car showroom is aiming to do 1,000 odd units by the year end, according to a senior official.

“It was late last year that we decided to create a certified pre-owned (CPO) car programme, studied industry benchmarks and wrote an operating manual,” said Anis Ahmad, division manager for Hyundai CPO vehicles. “Juma Al Majid Motors had sold pre-owned cars in the past, but this is the first time we are doing certified. To set up a standalone facility was the next step.”

In the near term, the dealership plans to build up an optimum stock level, which would be in the 200 to 300 vehicle range. This operation is seen as a natural supplement to the dealership’s new car business, which last year recorded volumes of 25,000 units and is targeting 35,000 this year, Ahmad added.

“What a certified programme does is raise the residual value of Hyundai models and when that happens, it will retain a car owner with the Hyundai brand over multiple stages.”

Buyers will be offered incentives such as roadside assistance and a chance to exchange their cars within 15 days of the purchase. There will also be a dedicated area for Hyundai’s premium models — Centennial and Genesis — at the facility.

Hyundai has also been making a case for standalone pre-owned facilities with its regional importers. Its Saudi partner was the first to open one, late last year.

Running certified pre-owned programmes are turning out to be a lucrative line for the organised auto sector.

Nearly all of the volume brand dealerships are running their versions and, of late, prestige car importers are going big with it as well.