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Hey everyone

Brand new episode of the CDG Podcast just dropped, this time with Michael Joe Cannon, Owner of Cannon Motors of Mississippi.

He breaks down his "Circle of Life" philosophy, explaining why employee stability is the ultimate defensive play against market volatility and direct sales threats.

Used cars have become dealership darlings, and dealers everywhere keep fine-tuning or inventing acquisition strategies to feed more into their lots.

Earlier this week, we posted data on our LinkedIn page that showed that the Ford, Chevrolet, Toyota, Honda, and Nissan brands accounted for nearly half of all used vehicles sold in February.

Some commenters on our post predicted that Hyundai and Kia would be next to steal the used-car market, so we asked them for their thoughts.

Here are three reasons dealers should pay close attention to Hyundai and Kia in the used market now and in the next few years.

Used Hyundai and Kia units are turning ~30 days vs. the 53-day market avg.

iSeeCars recently tracked how quickly 1-to-5-year-old used cars are selling nationally.

The market average sits at 53 days. But the Hyundai Kona Electric is turning in the low-to-mid 30s, putting it in the same company as the Honda Civic Hybrid, Lexus RX Hybrid, and Tesla Model Y.

Backing that idea: Paul Willett, general sales manager for Spirit Lake Ford/CDJR of Iowa, said their group sells both brands fast.

  • He’s also a former pre-owned manager at Luxury Auto Mall of Sioux Falls in South Dakota.

"Our Hyundais and Kias that we take in generally tend to turn in less than 30 days, with very few exceptions,” Willett told CDG News. “I don’t care if you’re talking about their hybrids, or say, a Kia Telluride, they just tend to turn very, very quickly."

He also reminded us that the brand has overcome a tough reputation to become recognized for reliability, pointing out that they make a nice used-car choice, especially with average new-car prices hovering around $50,000.

“They're both very dependable and really positioned nicely to move up the ladder in the used car rankings in the next few years,” Willett said.

Paul Willett
Coleman
Automotive Group

Not to mention, both Kia and Hyundai offer good hybrid options, and both check another box with their warranty offerings.

Both brands' certified pre-owned programs restore their original powertrain warranties for subsequent buyers, giving used shoppers a meaningful coverage advantage that few other brands can match.

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Both brands’ used units move through recon faster than ever.

In the 2025 J.D. Power Initial Quality Study, Hyundai Motor Group tied for the highest overall corporate ranking, with Hyundai placing second among mass-market brands and Kia's Telluride winning its segment.

Nick Chivinski, vice president of sales and strategy for Savvy Dealer, which provides digital marketing services for dealerships, told CDG News that Hyundai and Kia offer competitive price points amid market affordability woes.

(Chivinski’s resume includes decades of auto retail experience, including positions in finance and pre-owned.)

Adding to his point, he said Kia and Hyundai also provide value in equipment that consumers of all budgets want.

“I think that the interior aesthetics and interior tech, for Kia and Hyundai specifically, has been better than even some of the domestics,” Chivinski said.

Nick Chivinski
Savvy Dealer

Chivinski echoed Willett’s sentiments about the brand’s improvement, noting how that shows up in service. Chivinski said 10 or 12 years ago, he would rather wholesale a Kia or Hyundai, which often had cheap parts that would break, because they were a recon nightmare.

But that, too, has changed.

“Today, I'm able to get that car through the shop just as fast as I'm able to get my own product at the shop,” Chivinski said. “Parts are available, and they’re a much higher quality car than they may have been in the past.”

1.8M Hyundai and Kia units sold in 2025 will start hitting used supply over the next 2–4 years.

Hyundai and Kia combined to sell 1.84 million vehicles in the U.S. in 2025 for a record 11.3% market share, according to a January story in the Korea Herald.

The bulk of that volume (typically) hits the used market in two to four years.

But volume alone isn't the story, because what’s really changing is how much dealers may need that volume.

Several operators we’ve spoken with say new-car margins at Hyundai stores have tightened significantly, with some seeing lower returns than expected from a brand that had been a strong profit driver in recent years. (Not indicative of every dealer, but concerning…)

Why this matters: When new cars aren’t carrying the same weight, dealers naturally look to used and fixed to fill the gap.

And that’s where Hyundai and Kia start to matter a lot more.

In Chivinski’s words: "Kia focused on retail harder, and that's going to help maintain their residual values as well, so it's a safer bet.”

And at the brand level, Hyundai sees the used-car opportunity clearly. Randy Parker, CEO of Hyundai and Genesis Motor North America, told CDG podcast host Sam D’Arc this week that the brand has improved its used car value.

"Six and a half years ago, we weren't one of the best in terms of used cars,” Randy Parker, CEO of Hyundai and Genesis Motor North America, said on the CDG Podcast. “And now, we're starting to get into that tier one level in terms of a certified pre-owned… That's a really good book of business for us and a way for us to generate profit at the dealership level."

Randy Parker
Hyundai/Genesis
North America

Bottom line: All of this is to say, Hyundai and Kia are no longer secondary inventory.

They turn, they’re easier to recon, and there’s more supply coming. And with new-car margins tightening, these are the kinds of units dealers are going to rely on more.

The stores that recognize that early and start leaning in now will be in a much better position as that volume builds.

Agree? Disagree? Feel this way about another brand?

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Thanks for reading, everyone.
— CDG

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