Mike Kelley
Boston-based Bourne’s Auto Center is leveraging its unique market position to drive impressive volume while navigating the challenges of being an independent used vehicle dealer.
The dealership currently has more than 450 vehicles on the ground plus a full-service department and body shop. But the core of their success lies in their systematic approach to vehicle acquisition and sales, said General Manager Mike Kelley on a recent episode of Daily Dealer Live.
What they’re saying: "We have a phenomenal buying team. Our buyer's been with us for over as long as I've been here—23 years. He's just all day, every day, every avenue that you can be on, all of the online sites, all of the Manheims. You name it, we're there," said Kelley.
However, buying directly from other dealers' service lanes proves challenging for independents.
"We have tried it, and tried it, and tried it—and it's very difficult because that value add is just not there for us to be like, 'hey, you've got a Toyota Camry, we can flip you into a new one, same monthly pay.'"
By the numbers: Bourne’s sells about 300 vehicles monthly retail and 100 wholesale. The dealership tries to retail every possible trade-in. About 35-40% of customers have trades, but only ~15% of those are retaliable.
"A lot of them drive that car into the ground until there is not much left of it. But if there's anything left, we're gonna try to sell it," Kelley explained.
Current breakdown:
60% acquired through traditional auctions
Goal of 500 direct consumer purchases this year (up from 200 last year)
46% of inventory priced under $25,000
Need for speed: Bourne’s has operated under a fixed "one price" strategy since 2003, eliminating negotiation and accelerating transactions.
"We want customers in and out within 45 minutes," Kelley explains. "Once that customer says we're gonna buy, we want to get them signed to paperwork in and out within 45 minutes. The one price does that."
The model extends to trade-ins—Bourne’s prices are tight with little room for negotiation. This consistency has built trust: 50% of customers are repeat or referral.
Between the lines: Kelley acknowledges that independent dealers lack the fixed operations absorption that franchise stores enjoy. But their volume-focused approach compensates.
"We're in for volume," he says, achieving a $150 cost per sale through heavy third-party marketing instead of competing with franchise dealers on search terms. "Low front end gross, pick up the backend and move as much inventory as we can."
Big picture: The disciplined approach paid off during recent market volatility.
"We are seeing with the spike that went on around the tariff stuff, dealers started going to auction and buying like crazy. We didn't do that. We kept steady," Kelley said. "We thought it was going to be short lived—and that seems to be paying off because the customer is just so priced out."
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