HOUSTON -

Group 1 Automotive, like many of its peers in the dealer group world, has seen used-vehicle volumes continue to blossom.

Or as one analyst put it during the retailer’s recent quarterly earnings conference call, it seems the used volumes for dealers may still have more room for “acceleration” than the new-car side.

A big part of that acceleration has to do with supply, says Group 1 president and chief executive officer Earl Hesterberg, whose group moved 32,491 used retail units during the third quarter, a 12.9-percent increase. In the U.S. alone, it sold 27,664 used vehicles for an 11-percent increase.

Through nine months, worldwide used retail sales for Group 1 have reached 93,913 units (up 14 percent). Its used sales in the U.S. are up 13.2 percent with 79,647 sold year-to-date. 

“We’ve been starved for used cars, and quite frankly, we still are in many segments of the market, such as a little bit older cars that are still high quality, maybe in the 3- to 4-year-old range,” Hesterberg said.

“But there’s been a lot better supply of used cars this year, and I think that’s one of the factors,” Hesterberg continued. “And I also think that we’re a lot more proficient than we once were in the used-car business. And systems and things like that, and discipline, have I think made us better used-car retailers.”

Another question during the call looked specifically at the other areas of Group 1’s business that might be helped by increased used-vehicle sales.

“Obviously, being a good used-car operator is key to being a good new-car operator, as well. So, it supports the new-car business by being able to take the trade and turn it into retail,” said chief financial officer John Rickel.

“Clearly, it helps parts and service. The attachment rates on parts and service are not the same as new, but — especially as we continue to grow the CPO business — the CPO business does have a pretty good attachment rate, and we’re running about a 30-percent CPO mix.

“And then the final piece is in Pete’s world,” Rickel added, referring to Peter Delongchamps, Group 1 vice president of financial services and manufacturer relations. “You really can’t sell the F&I unless you sell that used retail unit. We continue to drive a lot of volume through F&I, which at the industry-leading levels that we’re running, generate a lot of gross profit through F&I for us.”