July 6, 2022


The Automotive Fanatics

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Top 100 retailers ranked on used-car sales: Shift in focus

Top 100 retailers ranked on used-car sales: Shift in focus

Zeigler Car Group of Kalamazoo, Mich., substantially enhanced its applied-to-new ratio in 2021 further than the 1-to-1 ratio it posted for 2020, firm President Aaron Zeigler told Automotive Information. Zeigler rose nine spots to No. 23, retailing 29,604 used autos previous 12 months vs. 20,920 in 2020 — a 42 % improve.

Considerably increasing applied-car stock became a issue of focus for the group in May perhaps 2020, in the course of the early days of the pandemic, Zeigler mentioned. The concentrate persisted into 2021 with the chip scarcity and constrained new-car or truck provide.

“Pretty much every little thing that we understood about the made use of-auto enterprise transformed,” Zeigler mentioned. “Historically, used vehicles have depreciated. All of a sudden, they started off appreciating, so they have been heading up in price in its place of down in excess of time.”

In prior several years, Zeigler Automotive cleared out employed vehicles soon after 60 times in stock, aiming to prevent losses from their depreciation. But during 2021, as automobiles rose in value, even right after 90 or 120 times in stock, Zeigler relaxed that 60-day rule.

The team failed to escape the complicated process of obtaining applied inventory, nevertheless: It purchased cars and trucks at auction, sought trade-ins, bought vehicles in bulk and worked out promotions with some automakers to buy autos coming off lease.

Paying for a dealership in Indiana and four in Wisconsin in 2021 gave the group a “minimal bit of a bump in quantity,” Zeigler explained.

Phase 1 Automotive Group’s used-to-new ratio also enhanced as its shops concentrated on selling made use of motor vehicles. The group based mostly in Fort Walton Seaside, Fla., entered the checklist at No. 82, retailing 11,307 employed vehicles in 2021, up 54 percent.

In 2021, the team sold 1.1 utilised automobiles for every new automobile bought — up from .7 two or a few years back, CEO Fernando Arellano Geddes told Automotive Information.

“All round, the utilised autos permitted us not only to continue to keep the functionality of the quantity but also get over functionality as opposed to 2019,” Geddes stated. “It truly is a crucial, essential element.”

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