Zeigler Automobile Group of Kalamazoo, Mich., considerably enhanced its applied-to-new ratio in 2021 over and above the 1-to-1 ratio it posted for 2020, business President Aaron Zeigler informed Automotive News. Zeigler rose nine places to No. 23, retailing 29,604 used motor vehicles very last yr vs. 20,920 in 2020 — a 42 per cent enhance.
Substantially expanding made use of-motor vehicle inventory turned a place of concentration for the group in Might 2020, for the duration of the early days of the pandemic, Zeigler mentioned. The concentrate persisted into 2021 with the chip shortage and constrained new-auto offer.
“Just about every little thing that we realized about the used-auto business modified,” Zeigler mentioned. “Historically, employed vehicles have depreciated. All of a unexpected, they begun appreciating, so they were going up in benefit as an alternative of down about time.”
In earlier many years, Zeigler Automotive cleared out utilised autos just after 60 times in inventory, aiming to steer clear of losses from their depreciation. But all through 2021, as cars rose in benefit, even just after 90 or 120 times in inventory, Zeigler relaxed that 60-day rule.
The group failed to escape the challenging endeavor of finding applied inventory, even so: It acquired cars at auction, sought trade-ins, ordered autos in bulk and worked out offers with some automakers to get vehicles coming off lease.
Buying a dealership in Indiana and four in Wisconsin in 2021 gave the group a “very little bit of a bump in quantity,” Zeigler mentioned.
Action 1 Automotive Group’s made use of-to-new ratio also improved as its suppliers concentrated on selling made use of autos. The team primarily based in Fort Walton Seashore, Fla., entered the listing at No. 82, retailing 11,307 employed cars in 2021, up 54 p.c.
In 2021, the team bought 1.1 made use of cars for each individual new auto offered — up from .7 two or three a long time in the past, CEO Fernando Arellano Geddes advised Automotive Information.
“In general, the utilized cars allowed us not only to keep the general performance of the volume but also conquer general performance versus 2019,” Geddes said. “It’s a essential, essential component.”