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

Zeigler Auto Team of Kalamazoo, Mich., drastically enhanced its employed-to-new ratio in 2021 outside of the 1-to-1 ratio it posted for 2020, corporation President Aaron Zeigler instructed Automotive News. Zeigler rose 9 places to No. 23, retailing 29,604 made use of vehicles previous yr vs. 20,920 in 2020 — a 42 % increase.

Dramatically rising utilized-car stock became a issue of focus for the team in Could 2020, in the course of the early days of the pandemic, Zeigler explained. The focus persisted into 2021 with the chip shortage and constrained new-vehicle offer.

“Just about all the things that we realized about the utilised-car enterprise changed,” Zeigler stated. “Traditionally, used cars have depreciated. All of a unexpected, they started appreciating, so they had been likely up in benefit alternatively of down over time.”

In past years, Zeigler Automotive cleared out used cars following 60 times in stock, aiming to prevent losses from their depreciation. But in the course of 2021, as cars rose in price, even just after 90 or 120 days in stock, Zeigler calm that 60-working day rule.

The group did not escape the hard undertaking of obtaining employed inventory, having said that: It acquired cars at auction, sought trade-ins, bought vehicles in bulk and worked out promotions with some automakers to obtain vehicles coming off lease.

Getting a dealership in Indiana and four in Wisconsin in 2021 gave the group a “minimal little bit of a bump in volume,” Zeigler stated.

Action 1 Automotive Group’s utilized-to-new ratio also improved as its outlets concentrated on selling used vehicles. The team dependent in Fort Walton Seaside, Fla., entered the listing at No. 82, retailing 11,307 applied vehicles in 2021, up 54 %.

In 2021, the group marketed 1.1 used vehicles for every single new car offered — up from .7 two or 3 decades in the past, CEO Fernando Arellano Geddes told Automotive News.

“General, the used cars allowed us not only to maintain the efficiency of the quantity but also overcome performance vs . 2019,” Geddes stated. “It can be a key, important part.”