Soaring on the wings of the snowbirds

From January through March, the population of South Florida, including Fort Lauderdale, Palm Beach and Miami, doubles to about 12 million, says auto dealer Rick Case.

For Case and other dealers, that massive influx of consumers represents a business opportunity. But they have to compete for it.

Every year, retirees from the North arrive in the fall and depart in the spring. They're called snowbirds because they mimic the seasonal travel of dark-eyed juncos, small sparrows that are also known as snowbirds.

For service staffer Paul Morris and the rest of the employees at George Nahas Chevrolet in Wildwood, Fla., the snowbirds' arrival is something to celebrate.

"We see a 32 percent rise in our service business when they're here," said Morris, a senior service adviser at the Chevy store. "This time of the year, we're appointment-only in the department."

Nahas Chevrolet is one of the closest dealerships to The Villages, a massive retirement community southeast of Ocala that has been billed by the U.S. Census, for two years running, as "the fastest growing city in America." It currently has approximately 115,000 residents.

Spread over three counties, The Villages has its own newspaper, TV and radio stations. But it doesn't have a dealership within its borders, so stores like Nahas Chevrolet -- located less than a mile away -- see a lot of regular and seasonal business from retirees.

Snowbirds tend to congregate in resort areas with access to golf, fishing, beaches and other leisure activities, so dealers near those areas feel the impact of their arrival the most. At Coggin DeLand Honda, just west of Daytona Beach, Sales Manager Ian Riding says that the arrival of snowbirds ups his service business by about 18 percent.

That's partly because snowbirds are typically older and more conscientious about servicing their vehicles. "When something needs their attention, they take care of it," Riding said. Coggin is part of Asbury Automotive Group, of Duluth, Ga., the nation's seventh-largest dealership group.

Riding said that catering to snowbirds comes naturally. "They are the sort of customers you want," he said. "And it isn't just regular service. If we tell them that their brakes are OK now but will likely need attention in 3,000 miles or so, they know that they have a 2,000-mile trip coming up as they go home, and they'll typically tell us to go ahead and take care of it. They know their vehicles, and they know how to take care of them."

Morris said snowbirds often arrive for service after their trek south, but it's more typical to see them before they head back north, and not just in the spring. Many snowbirds go home for Thanksgiving, Christmas or both. Depending on where they live, they may want all-season or snow tires fitted to their vehicles before they go and removed when they return.

George Nahas Chevrolet uses The Villages' media as a way to reach out to snowbirds, along with direct mail and social media. "We're also on every movie screen in The Villages," says Buzzy York, general sales manager. Advertising in the theaters has proved to be an effective and inexpensive way to reach snowbirds.

Often, customers who start out in the service department move to the front of the store. The arrival of snowbirds boosts his new-car business by 18 to 20 percent, York said. "I have to increase my inventory this time of the year to take care of them."

Case, CEO of Rick Case Automotive Group, and J.J. Jackintelle, its president, agree that sales perk up, rather than decline, when the snow flies. So they maintain high inventories year round. "In our other markets we're not able to do that. Even in Atlanta, there is a falloff," Jackintelle said.

Case gives the snowbirds a lot of reasons to think warm thoughts about his eight Fort Lauderdale-area new-car dealerships.

The group gives customers free reward cards that entitle them to discounted gasoline and unlimited free car washes. They can earn points toward discounts on future dealership purchases, including new and used vehicles.

Case also doubles the factory powertrain warranty on all new vehicles he sells -- except for the Maserati and Alfa Romeo brands -- to 20 years/200,000 miles.

Case has no data identifying the temporary residents among his customers because many have Florida addresses, but he is convinced that these benefits keep snowbirds flocking to his dealerships.

"It motivates them to buy a new or used car or get their service here in South Florida because they're getting a better deal than they would get at their home, whether it's in Boston, Pittsburgh or wherever," said Case, 73. He has been a dealer for 54 years, having gotten his used-car dealership license while a teenager.

Rick Case Automotive Group, of Fort Lauderdale, Fla., ranks No. 26 on the Automotive News list of the top 150 dealership groups based in the U.S., with retail sales of 23,016 new vehicles in 2014. In addition to the Florida stores, the group has dealerships in the Cleveland and Atlanta areas.

Business is brisk at Case's six-story, 600,000-square-foot Honda dealership in Davie. The dealership houses 1,500 vehicles, a barber shop, an eight-pump gasoline station and is within five minutes of all but two of his Florida dealerships. Each of his dealerships has its own drive-through car wash.

Customers that sign up for the Rick Case Reward Club card, launched in 2002, earn points when they purchase vehicles, parts, accessories or services.

For example, a new or used-vehicle purchase earns 100,000 points. A customer-referral vehicle purchase adds 50,000 points. Every 1,000 points is redeemable for a $1 discount, up to 10 percent on the purchase of service, parts and accessories and 5 percent on the purchase of a new and used vehicle.

Case sells gasoline to his customers at a 2 percent margin over cost to cover credit card costs.

He also uses his gas station and car washes as a place to display new vehicle models and promote sales events. Both amenities keep customers coming back to his dealerships on a regular basis, he added.

"They've been visiting us once or twice a week whether they want gas or car washes," he said. "When they think about service or need a new car, where are they going to go? It's a great retention program." c----