Zeigler Auto Group of Kalamazoo, Mich., drastically enhanced its utilised-to-new ratio in 2021 beyond the 1-to-1 ratio it posted for 2020, organization President Aaron Zeigler told Automotive News. Zeigler rose nine places to No. 23, retailing 29,604 used vehicles very last year vs. 20,920 in 2020 — a 42 per cent boost.
Substantially rising employed-motor vehicle inventory turned a point of focus for the team in May 2020, through the early days of the pandemic, Zeigler reported. The target persisted into 2021 with the chip lack and constrained new-motor vehicle supply.
“Practically every thing that we realized about the employed-car organization improved,” Zeigler stated. “Traditionally, used cars have depreciated. All of a unexpected, they commenced appreciating, so they had been likely up in price as a substitute of down about time.”
In earlier several years, Zeigler Automotive cleared out used cars soon after 60 days in stock, aiming to stay clear of losses from their depreciation. But throughout 2021, as cars rose in price, even soon after 90 or 120 days in stock, Zeigler calm that 60-day rule.
The team didn’t escape the tricky process of discovering applied inventory, however: It bought cars at auction, sought trade-ins, acquired vehicles in bulk and worked out specials with some automakers to invest in vehicles coming off lease.
Acquiring a dealership in Indiana and four in Wisconsin in 2021 gave the team a “minimal bit of a bump in quantity,” Zeigler reported.
Action A single Automotive Group’s employed-to-new ratio also enhanced as its outlets concentrated on providing employed vehicles. The group primarily based in Fort Walton Seashore, Fla., entered the list at No. 82, retailing 11,307 applied vehicles in 2021, up 54 p.c.
In 2021, the team marketed 1.1 applied vehicles for each and every new car or truck bought — up from .7 two or three yrs back, CEO Fernando Arellano Geddes explained to Automotive News.
“In general, the used cars allowed us not only to keep the effectiveness of the quantity but also conquer functionality versus 2019,” Geddes explained. “It’s a essential, vital ingredient.”