MARQUIS BRANDS AND A FAMILY ATMOSPHERE HAVE DRIVEN SUCCESS FOR THIS 15-DEALERSHIP AUTO GROUP FOR MORE THAN FOUR DECADES

by Laura D. C. Kolnoski • Photos By Premier Digital Photography

The Ray Catena Auto Group has come a long way from
Kearny, New Jersey, where Mr. Catena began his career selling pre-owned vehicles. Today, the business has over 15 dealerships in New Jersey and New York, offering premium luxury car brands such as Mercedes Benz, Lexus, BMW, Porsche, Maserati, Land Rover, Infiniti, Jaguar, Mini, Smart, and Sprinter vans. A new Audi dealership will open in Freehold by the end of this year, and the firm is planning its next Jaguar showroom in Brooklyn. The Edison location is among the top five in the country, and the group ranks seventh in the nation for Land Rover sales.

Ray Catena and his wife, Elsie, continue to work at the firm daily, while son-in-law James “Jim” Buchanan oversees numerous aspects of the business. While he is characterized as General Manager, Buchanan wears many hats. The Florida State graduate, who majored in political science with a double major in businesses and communications, is married to the Catenas’ daughter Sandy. Before joining The Ray Catena Auto Group 21 years ago, he was a regional sales manager for Hiram Walker and Pete’s Brewing Company.

“First and foremost, I try to help our people get better educated at their jobs,” said Buchanan, who interacts directly with all store managers. In 2012, the business sold 15,849 new and more than 2,500 pre-owned vehicles, and those figures rose in 2013 to 16,555 new and 2,860 used vehicles. This year, Buchanan is projecting total sales of up to 21,000 new and used cars.

“We represent great brands and our customer base is second to none,” he said. “There are no games, and we offer the best, highest quality service possible. At our level of the game, you don’t have to offer gimmicks or promotions. Our customers expect a certain level of service, however; the service department is what really benefits our future growth.”

Monitoring that service is a three-tier system of separate yet coordinated departments: the Office Department handles all paperwork, Sales Managers oversee showroom operations, and Service Managers handle all parts and service. All look out for each other to ensure transactions proceed smoothly, and at every opportunity, Buchanan credits and praises company employees for doing so.

“The best part of my job is dealing with the people who work for us,” he said. “I love the interaction, helping them achieve goals and grow within the company. If we grow a brand, we see people’s success grow, because customers have to like and trust the person they are buying from.”

Catena prefers to promote from within, particularly in the management ranks, and Places College graduates as delivery consultants to gauge their potential. Teams are cultivated and a philosophy of meticulous personal attention is stressed. Unusual in the car dealership world, the business does not offer financing, which can inflate costs and often needlessly complicate a sale. What all stores do offer is a warm atmosphere, and automotive specialists who tailor the car-buying experience to the individual.

Buyers seeking to upgrade often return their vehicles for trade-in; those cars are then offered to other customers, some are even certified with the same guaranteed performance and quality as new vehicles.

In the service and parts departments, technicians will, for example, point out the amount of wear on brake pads (revealing how much life realistically remains) rather than undertake immediate replacement, saving consumers unnecessary costs. Director of Fixed Operations, Bob Gallagher—an original employee from 1977 at Mr. Catena’s Fair Lawn Chevrolet dealership—is in charge of service and parts in all stores.

“In our business model, it’s all about selling good quality products, offering a good quality experience, and then offering the best service; a simple philosophy that has made the business successful with customers and manufacturers,” Buchanan said. “Our overall model is unique in the industry and it keeps people coming back.”

Customers include well-known professional athletes, actors, doctors, and others who gravitate to the top brands the company offers. Some can take a $40,000 Mercedes Benz and elevate it to as much as $500,000 depending on options and extras (panoramic roofs and quality sound systems are the most popular options). A rare few ordered the new limited-edition Porsche 918 Spyder, including a well-known hedge fund manager—a long-term customer who ordered the hybrid drive supercar three years ago.

At the other end of the spectrum are sub-compact Smart cars, which Buchanan calls a good and safe car that fills a critical commuter niche. In addition to selling Smart cars to those who use them to shuttle to ferries and train stations, the dealership has sold a number to governments, including a fleet to Seaside Heights used for parking enforcement.

“Our goal is to keep fulfilling the different product desires of our customers,” Buchanan said. “Throughout our company and dealerships, interaction allows us to know who bought what car in each store. That background helps in decision-making; we know the customer in front of us. One of my biggest thrills is when you lose a customer to another brand, say, and they come back and report that they prefer to buy cars from us. That says a lot about a company.”

Further continuity and consistency is achieved through hiring generations from the same family. (There are three sons of long-time employees at the firm’s Edison location.) In addition to ongoing expansion, The Ray Catena Auto Group is keeping an eye on the future of the industry. Buchanan explained that while the hybrid and electric car markets are growing, the government has a further regulatory aim of cars communicating with each other to prevent collisions.

“The consumer also wants a good experience with their phone in their cars, of course, too,” he added, predicting “incredible” new technology coming from Apple, Microsoft, and Samsung.

“We are always looking to grow; Mr. Catena has a lot of irons in the fire,” Buchanan said. “He is a motivated man who loves his business, loves the industry, and is respected. Older customers come in with kids and now grandkids. At the end of the day, we are really in the people business. If you have a great relationship with your customers, they will come back.”