Lithia Motors hopes to sell 75 used vehicles monthly in next few years

Article by Anita Panait, on November 28, 2013

Lithia Motors Inc. is targeting to sell an average of 75 used vehicles per store monthly in the next few years, chief executive Bryan DeBoer told Automotive News. The company will focus on people, property and processes to achieve that sales level, which in the third quarter was at an average of 57 used vehicles per store monthly.

DeBoer remarked that to increase their used-car sales, there is a need to boost their ability to find used cars, dubbed as "hard lifting." Lithia, which has 92 stores positioned mostly in the Pacific Northwest and California, is adding more employees to boost its hard-lifting ability.

In the past 12 to 18 months, Lithia has added more than a dozen used-car operations positions, mainly used-car managers. Lithia likewise is expanding some dealerships to allow them to stock more used vehicles, DeBoer remarked.

The company is also being more creative in finding used cars to sell. DeBoer remarked that the primary agenda in Lithia's recent manager meetings has been on "used-car development and consumer behavior, and how do we capture it." He said that the used-car business accounts for more than half of the potential profits of their stores, adding that in some dealerships, used cars are a third of fixed ops profits.

The company posted a 17-percent surge in used-vehicle retail sales in the third quarter of 2013 to 15,496. The average gross profit per retail used vehicle sold surged 7 percent to $2,687. Lithia's retail used-vehicle sales in the period amounted to a 15 percent gross-profit margin, compared with 6 percent for new-vehicle sales.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 2017
Each time that Mini launches a new generation of the Countryman crossover, a John Cooper Works performance version is always expected to follow. When Mini unveiled the next-gen 2017 Mini...
by - January 18, 2017
Ford Mustang customers won’t be able to specify the V6 powerplant for the latest iteration of the carmaker’s pony car. This comes as the new 2018 Ford Mustang is saying...
by - January 18, 2017
The man sitting at the top of the performance division of Mercedes-Benz – Tobias Moers – cryptically indicated that the Mercedes-AMG GT4 could be really coming. Moers, chief executive of...
by - January 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries