Phil Klima sits in a former Lincoln Mercury dealership in Brunswick, Ohio, overseeing an operation that moves more than 180 vehicles a month. Some months, it’s 200. The numbers put KDK Auto Broker ahead of every independent dealer in the county and 90 percent of all dealerships in the state, new car franchises included.
Not bad for an outfit that started two decades ago selling 20 cars a month out of a modest Cleveland lot.
“We saw an opportunity to be able to compete on a more level playing field against larger dealers if we had a proper marketing plan as well as more competitive pricing,” Phil Klima says. “We saw quickly that by having the best auto photos and descriptions as well as the best prices we could outsell much larger players in our field.”
The strategy worked. KDK Auto Brokers climbed from scrappy underdog to one of Ohio’s top independent dealers by betting early on online sales when most of the industry still relied on foot traffic and newspaper ads. Phil and his father, John Klima, built the business on transparent pricing, detailed listings, and a willingness to undercut competitors who didn’t see the internet coming.
Phil brought 17 years of automotive experience to the table. His background spans domestic brands and import luxury lines including Mercedes, BMW, Audi, Lexus, Toyota, Honda, Hyundai, and Mitsubishi. John came to the partnership with a resume that included ranking fifth nationally in Lincoln Mercury sales and running what was once the highest volume pre-owned vehicle operation in Ohio.
Together, they turned KDK into a volume machine that routinely lands in the top 8 percent for monthly sales in the state. Autotrader recognized the dealership as one of its top performers. The Better Business Bureau gave it an A rating.
The internet angle wasn’t just about putting cars online. It was about understanding how online shoppers behaved differently from lot browsers. They wanted information upfront. Clear photos from multiple angles. Honest descriptions of conditions. Pricing that didn’t require an hour of negotiation. KDK gave them exactly that, and the approach separated the dealership from competitors who treated their websites as afterthoughts.
The automotive industry in the early 2000s was still figuring out digital marketing. Most dealers had basic websites with stock photos and vague descriptions. Some didn’t list prices at all, forcing customers to call or visit in person. KDK took the opposite approach, treating online presentation as seriously as showroom presentation.
From Budget Cars to Volume Sales
The early days were humble. Phil and John started KDK Auto Brokers in Cleveland between 2003 and 2005, targeting budget shoppers looking for reliable transportation in the $3,000 to $8,000 range. Phil learned the business from the ground up during those years, handling mechanical and cosmetic reconditioning himself. The work was hands-on. The margins were thin. The operation moved 20 to 30 units a month.
By 2005, they’d outgrown the original location and expanded to Brookpark, Ohio. The new facility had space for more than 140 cars. Sales jumped to 80 or 100 units a month as KDK shifted its focus to high-volume, low-margin internet sales. Phil picked up new skills during this phase, managing a growing staff and coordinating off-site service and reconditioning operations.
The real turning point came in 2007 when the Klimas bought a former Nissan dealership in Brunswick. Three acres. Room for over 200 cars. Phil took on dual roles as controller and operations manager, overseeing marketing and daily dealership functions. Monthly sales climbed past 160 units. The inventory mix expanded to include import luxury brands and domestic trucks and SUVs.
“There was a former Nissan dealer that was being sold very close to where we live,” Phil Klima says. “When we were able to strike that deal and move in, it had a sudden positive impact on our company and was a defining moment that helped to pivot us to being one of the top two or three volume independent dealers in the state of Ohio.”
The Brunswick location changed everything. The proximity to home simplified logistics. The larger footprint allowed KDK to carry a wider range of inventory, attracting customers across different price points and vehicle preferences.
The growth didn’t stop. In 2016, KDK acquired a second Brunswick property, a former Lincoln Mercury dealership sitting on just over 10 acres across the street from the existing lot. The move optimized reconditioning and streamlined operations. Sales pushed past 180 units monthly, with certain months hitting 200.
Having reconditioning operations directly across the street eliminated the coordination headaches of off-site work. Cars could move between locations quickly. Quality control improved. The entire process became more efficient, allowing KDK to turn inventory faster and maintain the competitive pricing that had become central to its identity.
KDK Auto Brokers’ Core Values and Customer Focus
Phil Klima describes the dealership’s approach in straightforward terms. Transparency. Integrity. A servant mindset. The values aren’t slogans. They’re practical tools for building repeat business and maintaining a positive reputation in a competitive market.
“Our core values center on being transparent with our customers, having a high level of integrity and having a servant mindset,” Phil Klima says. “We find these values are very critical for fostering long-term loyalty and repeat business from our customers as well as a positive reputation in our area.”
The mission is equally direct. Put customers first. Provide a quality product. Price it below market. KDK measures success partly through standard financial metrics, but Phil says the real priority now is net positive influence on customers and employees.
The car business has a reputation for brutal hours. Salespeople working until 9 or 10 at night. Managers putting in 60 or 70 hour weeks. KDK Auto Broker tries to buck that trend by offering what Phil calls the best hours in the business, giving staff more time with their families. The approach addresses an industry problem while helping retain employees in a field known for high turnover.
The dealership faced a significant challenge when it took on a new car franchise that turned out to be a poor fit. Phil had to let go of employees and rebuild over 18 months. The retooling process tested the operation, but KDK came through on the other side with a staff Phil describes as diverse, drawn from different places and backgrounds.
Beyond the Dealership
Phil’s work doesn’t end when he leaves the lot. He runs a commercial real estate business focused on what he calls above-average workforce housing. His portfolio spans Ohio with holdings valued at more than $10 million. He also coaches his son’s CYO athletic teams and supports local charities.
The real estate business follows a similar philosophy to the dealership. Provide quality at fair prices. Focus on serving a specific market. Build long-term relationships.
John Klima’s side ventures run in a different direction. He’s been collecting art, rare manuscripts, maps, and books for over three decades.
The father-son partnership extends into real estate investing beyond Phil’s independent holdings. Together, they’ve acquired nearly 800 units in a portfolio valued just under $70 million, built without syndicators or outside investors. John provides financial backing while Phil handles operations, a division of labor that’s proven effective across both automotive and real estate ventures.
KDK Auto Brokers Invests in Community
KDK Auto Broker has supported multiple charitable causes and community initiatives over the years. The list includes the West Side Catholic Center and several local schools. The dealership sponsored the full annual tuition of one student at The Welsh School at St. Ignatius. It has also contributed to Incarnate Word Academy and St. Ignatius High School, among other causes.
Phil graduated from St. Ignatius High School in Cleveland with honors and studied finance and business at Fordham University in New York City. John graduated from Ohio Wesleyan University and has been married to his wife, Barbara, for 47 years.
The charitable work ties into Phil’s broader view of success. Financial metrics matter, but they’re not the only yardstick.
“We do measure success by the typical financial yardsticks most companies use, but of more importance to us at the stage we are in now is the net positive influence that we can have on our customers and employees,” Phil Klima says. “This carries a lot of meaning for us.”
That perspective represents a shift common among businesses that have achieved stability. Early years focus on survival and growth. Later years allow for broader considerations about legacy and community impact.
KDK’s online strategy put it ahead of competitors who were slow to adapt. The detailed photos and descriptions that seemed like overkill in the early 2000s became standard practice as internet sales took over the industry. The competitive pricing that helped KDK stand out against larger dealers remains central to the operation today. The approach hasn’t changed much. The scale has.
