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Old 02-08-2016, 09:49 AM   #1
TORGY
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Default new model accessory kits

How do you handle the new model accessory kit that Hyundai crams down our throats? I have tried to get our sales manager to install these on lot vehicles but he refuses to do so because of the fear of having to dealer trade those vehicles. So after the 9 months that we have to wait before they become eligible as returnable parts, if they become eligible returnable parts hey burn up all of my semi annual parts return reserves.
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Old 02-08-2016, 06:28 PM   #2
mryan55
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Not sure if this is a possibility with Hyundai -- but with Fiat-Chrysler many of the new vehicle accessories that try to get pushed via parts department are also available as factory installed options, and the way it is set up it can be a win-win situation.

1) The accessories are invoiced with the car, so no worries if the new car department needs to dealer trade them

2) The factory installed accessories count toward any incentives or bonuses offered to the parts department for the sale of such accessories

If other OEMs don't offer such a thing I have to say it certainly makes sense, makes accessories less of a perceived headache for the new car department and makes things nice for parts as well.
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Old 02-09-2016, 10:03 AM   #3
XDCX
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Originally Posted by mryan55 View Post
Not sure if this is a possibility with Hyundai -- but with Fiat-Chrysler many of the new vehicle accessories that try to get pushed via parts department are also available as factory installed options, and the way it is set up it can be a win-win situation.

1) The accessories are invoiced with the car, so no worries if the new car department needs to dealer trade them

2) The factory installed accessories count toward any incentives or bonuses offered to the parts department for the sale of such accessories

If other OEMs don't offer such a thing I have to say it certainly makes sense, makes accessories less of a perceived headache for the new car department and makes things nice for parts as well.
It would be interesting to know how many OEMs use the same system that FCA does. I know the Mopar people were pushing to make the current system happen for a long time and it appears to be a win-win for both the Parts Department and the Sales Department.

Concerning dealer trades, I'm guessing the only downside is both dealers need to check to make sure the extra accessories are included in the car when the exchange is made.
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Old 02-09-2016, 10:05 AM   #4
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Originally Posted by TORGY View Post
How do you handle the new model accessory kit that Hyundai crams down our throats? I have tried to get our sales manager to install these on lot vehicles but he refuses to do so because of the fear of having to dealer trade those vehicles. So after the 9 months that we have to wait before they become eligible as returnable parts, if they become eligible returnable parts hey burn up all of my semi annual parts return reserves.
Does Hyundai "auto-ship" the accessories or are you ordering them based on pressure from your Factory Rep?
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Old 02-09-2016, 02:00 PM   #5
TORGY
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yes whenever a new model of vehicle is released they ship the dealer a group of accessories and it is billed on the open parts account, which end up in the parts department inventory. I have told the sales manger that I will gladly sell them at the dealer cost just to get them out of our inventory, but that is not enough incentive for him.
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Old 02-09-2016, 02:06 PM   #6
TORGY
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I emailed the reps for Hyundai once again today with a few suggestions,which will probably will fall on deaf ears. but you never know.

Here are a few things that I believe would help us out as dealers.

Give the dealers the option to receive the new model kits or not, and give discounts (10-15%) to those dealers who opt in.
Larger dealers would probably purchase more start up kits generating close to the same sales that you are already getting with selling one kit to every dealer.

Offer different packages that the dealer can choose with different discounts to each level of kit that you order. (We know what we sell)
This will help everyone with in all areas with less product returns to process, meaning less revenue being spent.

Also Hyundai should take any unsold product back on a special policy adjustment without effecting the dealers accrued return allowances. Don’t make the dealer responsible for the returning of unsold accessories that they didn’t want to begin with. Were basically having to buy these parts twice, and that is not right any way that you look at it.

Please forward my concerns on to your team, for review.
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Old 02-10-2016, 08:39 AM   #7
tnpartsguy
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Quote:
Originally Posted by TORGY View Post
yes whenever a new model of vehicle is released they ship the dealer a group of accessories and it is billed on the open parts account, which end up in the parts department inventory. I have told the sales manger that I will gladly sell them at the dealer cost just to get them out of our inventory, but that is not enough incentive for him.
If they are auto-shipped without an order being generated by the parts dept, they belong to the NCD (IMHO), and should be installed.
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Old 02-10-2016, 11:02 AM   #8
XDCX
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Quote:
Originally Posted by TORGY View Post
yes whenever a new model of vehicle is released they ship the dealer a group of accessories and it is billed on the open parts account, which end up in the parts department inventory. I have told the sales manger that I will gladly sell them at the dealer cost just to get them out of our inventory, but that is not enough incentive for him.
Thanks for the update - that's really interesting.

Do you get the sensation that this is an issue with most Hyundai Parts Managers or is it not that big of a deal?
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Old 02-10-2016, 11:03 AM   #9
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Originally Posted by tnpartsguy View Post
If they are auto-shipped without an order being generated by the parts dept, they belong to the NCD (IMHO), and should be installed.
That would definitely get the attention of the New Car Department....
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Old 02-15-2016, 01:51 PM   #10
TORGY
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here is the response that I received from my e-mail to Hyundai.

I know this may sound a little harsh, but the dealer agreement states that you as a dealer will participate in all HMA related programs.
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Old 02-16-2016, 10:34 AM   #11
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here is the response that I received from my e-mail to Hyundai.

I know this may sound a little harsh, but the dealer agreement states that you as a dealer will participate in all HMA related programs.
Thanks for the update - that's interesting.

I guess it makes a Hyundai DM's job pretty easy if the dealers do not have a choice and must participate in all HMA related programs.
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