2. Used-car appraisals: Every car that comes in for a service appointment gets an appraisal, O'Flanagan said. "We show how much they would get if they trade it in or sell it," he said. "In many cases, we can match or beat the current payment that they have" on a new purchase.
3. Dedicated employees: The employees who appraise cars with an eye to selling cars to service customers are dedicated full time to that function. That's important, O'Flanagan said.
"The temptation in most dealerships is to repurpose existing personnel -- to have the used-car manager go at lunchtime and appraise some cars. We have dedicated people," he said. "Only then did the program really take off."
In May, the dealership's Vehicle Exchange Center sold 51 vehicles at a total gross profit of about $102,000, or $2,000 each, O'Flanagan said. That included extended-service contract penetration of 73 percent, about 50 percent higher than the dealership average, he said.