Sonic Automotive has opened its newest EchoPark specialty pre-owned vehicle store in Birmingham, Ala.
The 27,000-square-foot facility is the company’s 22nd location to date and its first in Alabama.
David Smith, chief executive officer of Sonic Automotive and EchoPark Automotive, said Birmingham has long been a strong market for Sonic’s new-vehicle business.
“More and more people are getting back out on the roads as we head further into 2021, and we expect to see continued strong demand for pre-owned vehicles and rapid growth for the EchoPark brand as a result of its inventory selection, unbeatable pricing and unique guest experience,” Smith said in a news release.
Smith also said, “There is a tremendous opportunity for growth in the pre-owned vehicle market, and as we continue the rapid expansion of our nationwide distribution network we are excited to introduce the EchoPark guest experience to car buyers in the state of Alabama and beyond.”
Greater Birmingham market guests will be able to visit in person at 2001 Tom Williams Way or online at www.echopark.com to shop nearly 10,000 1- to 4-year-old pre-owned vehicles under original factory warranty. The vehicles have clean Carfax reports, and Sonic said they are priced up to 40% below new-car pricing.
The Birmingham opening follows recent openings in Maryland, Arizona and New York.
The company continues to expand its EchoPark footprint. The Birmingham opening follows recent openings in Maryland, Arizona and New York, and Sonic plans to reach a 140-point nationwide distribution network by 2025. By that time, expectations are for it to retail 575,000 vehicles annually and generate $14 billion in EchoPark revenues.
Sonic said the new facility provided EchoPark an opportunity to upcycle the building, refreshing the location with what it described as a bright, welcoming, guest-centric experience.
“We continue our growth into new markets offering a unique alternative to the traditional pre-owned vehicle dealership experience,” the company said.
The company expects EchoPark Birmingham to employ approximately 70 team members when fully staffed.
Like many of their retail contemporaries, Zeigler Auto Group is in growth mode.
But in this case, the Kalamazoo, Mich.-based group is expanding via what’s already in place at its one of its Illinois luxury rooftops.
Zeigler recently announced that it has purchased four acres of property adjacent to its existing BMW of Orland Park store with plans to renovate the dealership’s parking lot and showroom.
“We are excited to continue to elevate the Zeigler experience for all of our customers through these renovations. As always, our goal is to ensure that every customer receives the very best experience from us at all times,” Zeigler Auto Group president and owner Aaron Zeigler said.
The group indicated the project — which is slated to be completed this summer — will consist of the addition of 325 parking spaces in order to give customers a greater selection with more convenience and opportunity while shopping.
The project also includes a redesign of the showroom interior and customer lounge.
Zeigler said the interior modifications will be made to bring the dealership up to manufacturer standards. These enhancements will include interior finishes such as flooring, ceilings, furniture, a redesigned customer lounge, an overall color palette refresh and more.
BMW of Orland Park is one of Illinois’ largest volume BMW dealerships, stocking a supply of new and used BMW cars, crossovers and SUVs.
Zeigler is one of the largest privately owned dealer groups in the nation with 75 franchises and 30 locations in Illinois, Indiana and Michigan.
Editor's note: Includes updated figure from Lithia on total acquired annualized revenues.
Lithia Motors & Driveway has expanded its presence in the Southwest with the purchase of Avondale Nissan in Phoenix.
The acquisition announced Tuesday would add $75 million in annualized revenue for the retailer. Lithia’s purchases since launching a five-year plan nine months ago add up to annualized revenues of more than $4.1 billion, the retailer said.
“We are excited to welcome the high-performing Avondale Nissan team to the Lithia Motors & Driveway family,” Lithia president and chief executive officer Bryan DeBoer said in a news release.
“Their dedication to earning customers for life while making a positive impact in their local community, exemplifies our core values,” he said.
DeBoer added: “The pipeline of acquisition targets that meet our hurdle rates is the most active we have ever seen.
“We are ahead of our target of acquiring $4 billion in annualized revenues each year and are well on our way to reaching our plan of $50 billion in revenue and $50 earnings per share."
Lithia financed the purchase through capital it raised in concurrent equity and debt offerings in late 2020.
This purchase follows Lithia’s acquisition of Fink Automotive Group in Florida earlier this month.
Lithia announced in February that it has purchased a Land Rover dealership and a Chrysler Jeep Dodge Ram store from Fields Auto Group. Both locations are in the Orlando, Fla., area. Lithia also opened a previously awarded Infiniti store in downtown Los Angeles.
As part of its efforts to reduce its environmental impact and align with the Paris Agreement’s climate change mitigation goals, CarMax announced its commitment to achieve net zero carbon emissions by 2050.
CarMax said it will initially use a strategy with two scopes as defined by the Paris Agreement. The first is to reduce its own emissions. The second scope is to increase the share of renewable energy in the company’s overall electricity supply.
The company said it expects those efforts to include using energy conservation measures to avoid and reduce emissions.
Those efforts could also include:
— applying on- and off-site renewable energy generation;
— implementing renewable energy procurement strategies, such as renewable supply contracts, and power purchase agreements;
— purchasing verified and socially beneficial offsets if necessary.
CarMax said it has already made meaningful reductions to its carbon footprint.
It is targeting a 50% reduction of greenhouse gas emissions by 2025, compared with a 2018 baseline.
In addition to its net zero initiative, CarMax is focusing on the expanding electric vehicle market, with CarMax chief executive officer Bill Nash saying the company intends to be a leader in offering used EVs as the market evolves and grows.
Related to that goal, the company expects to invest in training, tools, and internal infrastructure to strengthen its ability to service and recondition EVs.
At the end of May, CarMax will publish its 2021 Responsibility Report, which will provide more information on CarMax’s net zero efforts and other ESG topics, at https://socialresponsibility.carmax.com.
CarMax said it is currently evaluating Scope 3 value chain emissions.
Sonic Automotive has expanded its EchoPark standalone used-car store network, and once again done it through acquisition.
The retailer announced the purchase of the Carbiz dealership group on Tuesday, bringing EchoPark into the Baltimore-Washington market.
The two-store Carbiz group has a Baltimore location and a Laurel, Md., store, which have been renamed EchoPark Baltimore and EchoPark Laurel, respectively.
With the addition of these stores, EchoPark now has 21 locations. That sum includes retail hubs and delivery/buy centers.
“We are excited to add Carbiz to the EchoPark family, expanding EchoPark’s footprint into the Baltimore-Washington area and offering new guests in this market the inventory selection, exceptional pricing and extraordinary guest experience that has become synonymous with the EchoPark brand,” Sonic and EchoPark president Jeff Dyke said in a news release.
“This latest addition, coupled with the recent acquisition of Used Car King, marks EchoPark’s entry into the mid-Atlantic and northeast markets as we continue the expansion of our nationwide distribution network,” Dyke said.
Sonic has retained the 65 associates of Carbiz as EchoPark employees. The retailer is looking to fill 30 EchoPark positions immediately and aims to have 150 within the first year.
Carbiz was a family-owned business started in Baltimore in 2003.
In a news release, Carbiz chief executive officer Evan Burney said: “We are thrilled to have Carbiz join EchoPark Automotive. For years, we have been expanding our online footprint. At the same time, we believe customers should have the ability to shop how they want to shop, including completing transactions online or coming into the dealership.
“With its progressive model and similar company culture, EchoPark was a clear match for us and I’m excited for my team and I to join an accelerating industry disruptor. I want to thank all of our customers for their patronage over the years and look forward to continuing to serve them as part of the EchoPark family,” he said.
Last month, Sonic announced it had opened an EchoPark location in the Phoenix suburbs.
A few days earlier, the retailer said it brought two Used Car King locations in New York State into the Echo Park fold. That move expanded the EchoPark program into the Northeast for the first time.
Sonic opened four EchoPark locations in the fourth quarter.
Hendrick Automotive Group is taking its Hendrick Autoguard vehicle protection and maintenance service program and extending it to other dealer groups through a new affiliate called NationsGuard.
Johnny McKellar — who is the senior vice president, chief marketing and administrative officer of Hendrick Autoguard — is the president of the new NationsGuard affiliate.
He joins the podcast with Andrew Walser, president of Walser Automotive, which is partnering with Hendrick for this program.
To listen to this episode, click on the link available below, or visit the Auto Remarketing Podcast page.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
Penske Automotive Group said Tuesday it has rebranded its standalone used-car store program in the U.S. to create one global brand for all of its used-vehicle SuperCenters.
More specifically, the six CarSense stores in the U.S. are rebranded as CarShop locations, matching Penske’s existing 11 CarShop stores in the U.K.
“With this name change, we are taking the next step in the development of a global used vehicle SuperCenter brand,” chief executive officer Roger Penske said in a news release.
Last year, Penske’s used-car stores moved more than 50,000 vehicles, pulling in revenues of more than $1 billion, the CEO said. And the retailer is expecting even more growth in this program.
“By the end of 2023, our goal is to expand CarShop from 17 locations to 40, grow annual unit sales to 150,000, and increase revenue to $2.5 to $3.0 billion, more than doubling the size of the existing business while generating earnings before taxes of approximately $100 million,” Penske said.
The company said CarShop provides up-front, no-haggle pricing and a money-back guarantee. The CarShop website allows for a fully digital experience, giving shoppers the ability to select vehicles, get customized payment information and schedule home delivery.
Sonic Automotive continues to expand its standalone used-car program, announcing Tuesday it has opened an EchoPark Automotive location in the Phoenix suburbs.
The store, located in Avondale, Ariz., is Sonic’s 19th EchoPark location.
On Friday, the retailer said it brought two Used Car King locations in New York State into the Echo Park fold, putting the count of retail stores and delivery/buy centers to 18. That also expanded the EchoPark program into the Northeast for the first time.
Sonic opened four EchoPark locations in the fourth quarter.
“Our fiscal year 2020 success reflects EchoPark’s continued value proposition and its truly unique guest experience, inventory selection and unbeatable pricing,” Sonic and EchoPark president Jeff Dyke said in Tuesday’s news release. “We’re kicking off the New Year by opening an EchoPark store in a new market, right here in Phoenix, Arizona, and will continue executing our accelerated expansion plan, bringing the EchoPark guest experience to many additional markets in the coming months.”
It was a record year for EchoPark in 2020, as the used-car stores pulled in all-time highs for revenue and retail sales volume.
Specifically, EchoPark generated $1.42 billion in total revenue during 2020, beating 2019 figures by 22.1%. EchoPark retailed 57,161 used vehicles last year for a 15.4% hike.
Sonic opened seven new EchoPark stores in 2020. By 2025, it aims to have a 140-point, national EchoPark distribution network, with the used-car program pulling in 575,000 retail sales annually as well as $14 billion in annual revenues.
“EchoPark continues to break records. For fiscal year 2020, we achieved all-time record revenue and retail sales volume while opening seven new EchoPark locations during the year,” Sonic and EchoPark chief financial officer Heath Byrd said in a news release. “EchoPark’s growth and performance tell us two things: the EchoPark hybrid business model continues to be compelling, and the market for specialty pre-owned vehicles continues to be favorable for expansion.”
Sonic Automotive’s specialty pre-owned vehicle brand now stretches into the nation’s most densely populated region — the Northeast.
On Friday, the company announced the expansion of the EchoPark Automotive network with the addition of Used Car King in the New York markets of Cicero and Cortland.
Sonic highlighted these two Used Car King locations bring EchoPark’s nationwide count of retail stores and delivery and buy centers to 18, following the recent openings of four new EchoPark locations during the fourth quarter.
Furthermore, the addition of Used Car King expands EchoPark’s geographic footprint into the northeastern United States, serving buyers throughout New York State and beyond.
EchoPark Automotive opened in 2014, focused on making the used-vehicle buying experience faster, easier and friendlier. Officials called it a “natural choice” for Used Car King to join the EchoPark network. The locations now are known as EchoPark Cortland and EchoPark Cicero.
“EchoPark’s brand promise is centered around offering below-market pricing, high vehicle quality and an extraordinary guest experience,” said Jeff Dyke, president of Sonic Automotive and EchoPark Automotive.
“With thousands of delighted guests across all of our existing markets, we are excited to bring the same great EchoPark experience to new regions of the U.S. as we continue our rapid expansion,” Dyke continued in a news release.
At the time of the acquisition, the company said all 38 Used Car King associates were retained and have become valued employees under the EchoPark brand.
Sonic also noted an additional 25 members of the local community have been hired and EchoPark is looking to fill another 12 positions immediately.
“We anticipate additional hiring needs as the business matures into the second and third quarter of 2021 and beyond,” EchoPark Automotive general manager Dan King said. “The EchoPark retail hub store in Cicero, New York, where pre-owned inventory is processed for reconditioning, will eventually serve markets throughout the Northeast as the footprint of our brand expands in the coming years, leading to additional hiring needs.
“EchoPark offers all of the wonderful benefits one would expect from a rapidly expanding Fortune 500 company, providing competitive wages and undeniable opportunity for advancement. It’s an exciting time to be in the retail automotive arena,” King went on to say.
In the news release, Used Car King chief executive officer Todd Caputo reflected on making this move with Sonic Automotive. As featured previously in Auto Remarketing, Caputo has been in the used-car standalone store game since the 2000s.
“Since the day my father Joe Caputo opened Sun Auto Group in 1978, we've been providing value to our customers and there is no doubt in my mind that EchoPark Automotive is ahead of the curve,” Caputo said. “We couldn’t be happier to have the Used Car King brand join the EchoPark family as we both share the same goal — to make our customers happy by offering them great cars at excellent prices.
“While you will see a new name and logo, you can anticipate the same great experience that you’ve come to expect from Used Car King; that will remain unchanged,” he went on to say. “Thank you to all of our customers, and we look forward to a new relationship with EchoPark Automotive and continuing to meet your needs.”
Friday’s announcement continued Sonic on its path toward expanding its EchoPark footprint to a 140-point nationwide distribution network by 2025, with the expectation of retailing 575,000 vehicles annually and generating $14 billion in revenues by that time.
It was a record year for Sonic Automotive’s standalone used-car store program, as EchoPark pulled in all-time highs for revenue and retail sales volume.
Specifically, EchoPark generated $1.42 billion in total revenue during 2020, beating 2019 figures by 22.1%.
EchoPark retailed 57,161 used vehicles last year for a 15.4% hike.
And the standalone stores closed the year on a high note, as well.
“Our EchoPark business achieved strong top-line growth during the fourth quarter, with record quarterly revenues of $386.9 million, up 25.4% from the prior year period. EchoPark’s continued growth demonstrates the significant benefits we offer our guests, who continue to see value in the excellent pricing, inventory selection and buying experience that EchoPark offers,” Sonic and EchoPark president Jeff Dyke said in a news release.
“This in-store experience, combined with our hybrid approach between online and on-site, offers consumers a full range of buying options in order to provide their ideal pre-owned vehicle purchase experience,” Dyke said.
“With the opening of four new EchoPark points in the fourth quarter and the recent acquisition of two pre-owned businesses in Maryland and New York, we remain committed to developing our nationwide distribution network, which we continue to expect to retail over half a million pre-owned vehicles annually and drive $14.0 billion in annual EchoPark revenues by 2025.”
As for 2020, here’s a breakdown of how EchoPark fared, followed by used-car results for Sonic's franchised dealer stores.
Included in that total EchoPark annual revenue figure was $1.22 billion in used-vehicle revenue (up 22.3%), $28.72 million in wholesale revenue (up 25.3%), $39.34 million in parts/service/collision repair revenue (up 36.8%) and $132.03 million in F&I and other revenue (up 16%).
In addition to the aforementioned retail sales, EchoPark sold 7,178 wholesale vehicles in 2020, a 24.3% hike.
Gross profit per unit for EchoPark (total used vehicle and F&I) was $2,013 last year, down 12.3%.
Within its franchised dealerships, Sonic’s used retail revenue was $2.35 billion, a 5.9% decrease. Wholesale vehicle revenue came in at $168.66 million, a 6.3% decline.
Those stores retailed 101,864 used vehicles last year, down 9.6% year-over-year. They wholesaled 24,879 used vehicles, a 12.3% drop.
Gross profit per unit on used was $1,207, a 7.9% decline.
