Zeigler Vehicle Group of Kalamazoo, Mich., appreciably improved its utilised-to-new ratio in 2021 outside of the 1-to-1 ratio it posted for 2020, company President Aaron Zeigler informed Automotive News. Zeigler rose 9 spots to No. 23, retailing 29,604 applied cars last year vs. 20,920 in 2020 — a 42 p.c boost.
Drastically raising utilised-vehicle inventory became a position of concentration for the group in May well 2020, all through the early times of the pandemic, Zeigler said. The target persisted into 2021 with the chip scarcity and constrained new-motor vehicle offer.
“Almost everything that we realized about the applied-automobile business enterprise modified,” Zeigler reported. “Traditionally, utilised cars have depreciated. All of a sudden, they began appreciating, so they ended up likely up in worth rather of down about time.”
In earlier decades, Zeigler Automotive cleared out made use of vehicles just after 60 times in inventory, aiming to stay clear of losses from their depreciation. But throughout 2021, as cars rose in benefit, even after 90 or 120 days in stock, Zeigler peaceful that 60-day rule.
The group did not escape the hard job of obtaining used inventory, even so: It acquired automobiles at auction, sought trade-ins, purchased cars in bulk and worked out promotions with some automakers to get motor vehicles coming off lease.
Obtaining a dealership in Indiana and four in Wisconsin in 2021 gave the group a “minor little bit of a bump in quantity,” Zeigler mentioned.
Move A person Automotive Group’s employed-to-new ratio also enhanced as its suppliers concentrated on selling applied autos. The team primarily based in Fort Walton Seaside, Fla., entered the record at No. 82, retailing 11,307 utilized vehicles in 2021, up 54 percent.
In 2021, the group bought 1.1 applied autos for each new vehicle sold — up from .7 two or 3 many years back, CEO Fernando Arellano Geddes informed Automotive Information.
“All round, the used cars authorized us not only to maintain the overall performance of the volume but also overcome effectiveness as opposed to 2019,” Geddes reported. “It truly is a critical, key element.”