Used-vehicle retail large CarMax Inc. tops Automotive Information’ debut listing of outlets by used-vehicle-only gross sales.
Becoming a member of CarMax on the inaugural listing is a mixture of nationwide and regional used-vehicle retailers with high-volume, multistore operations. There are additionally publicly traded on-line used-vehicle retailers that gained extra prominence within the final decade and grew gross sales volumes considerably in the course of the COVID-19 pandemic.
CarMax, of Richmond, Va. — previously the longtime chief of Automotive Information’ annual rating of the highest 100 U.S. dealership teams by used-vehicle gross sales — offered 807,823 used automobiles in its fiscal yr ended Feb. 28, 2023, down 13 p.c from the earlier yr. Automotive Information revamped its prime 100 rating this yr into an inventory that completely options franchised dealership teams. The change was spurred partly by CarMax’s sale in late 2021 of its final franchised new-car dealership.
On-line used-vehicle retailers corresponding to Carvana Co., Vroom Inc. and Shift Applied sciences Inc., which had been included within the earlier variations of the highest 100 rating, even have moved to the used-only listing.
Carvana, of Tempe, Ariz., offered 412,296 used automobiles in 2022, down 3 p.c from the earlier yr. Carvana entered 2022 poised for quantity progress much like ranges it has skilled for the previous a number of years. However as rising rates of interest and different components impacted the affordability of used automobiles in the course of the yr, Carvana set growth-at-all-costs on the again burner and mentioned it might prioritize profitability.
That, coupled with a downturn in demand from 2021 highs, in the end led to the web retailer’s decrease car gross sales in 2022.
DriveTime Automotive, additionally of Tempe, offered 102,649 used automobiles in 2022, down 3.3 p.c from the earlier yr. Carvana was spun off from DriveTime in November 2014, two years after it began operations. It has operated independently since, although it famous in its 2022 annual report that it makes use of DriveTime for “sure providers.”
The brand new listing consists of CarShop and EchoPark Automotive, the used-vehicle-only companies of publicly traded dealership teams Penske Automotive Group Inc. and Sonic Automotive Inc., respectively.
CarShop, of Chester Springs, Pa., offered 71,242 used automobiles in 2022, up 12 p.c from the earlier yr. EchoPark, of Charlotte, N.C., offered 64,107 used automobiles in 2022, down 18 p.c. Penske’s CarShop consists of gross sales from the U.Ok.
America’s Automotive-Mart, of Rogers, Ark., operates 157 used-vehicle-only dealerships throughout the south central area of the U.S. It offered an estimated 63,000 automobiles in 2022, up an estimated 4 p.c from the earlier yr.
Vroom, of Houston, offered 43,036 automobiles in 2022, a bit greater than half of what it offered in 2021. In Might 2022, Vroom introduced that it might pivot from rising its gross sales quantity to as an alternative work on decreasing its money burn and driving up its per-vehicle earnings.
Tricolor Holdings, of Irving, Texas, offered 25,553 automobiles in 2022, up 33 p.c. The corporate operates shops in Texas and all through the Southwest.
Shift Applied sciences, of San Francisco, operates primarily alongside the West Coast after it applied in August 2022 a restructuring plan that included closing seven upkeep and buyer relations hubs. Shift consolidated its bodily operations to Los Angeles; Oakland, Calif.; and Portland, Ore. It offered 20,961 automobiles in 2022, down 9.8 p.c from the earlier yr.
RightWay Auto Gross sales is owned by Garber Administration Group of Saginaw, Mich., and has places in Michigan, Ohio, Illinois, Missouri, Wisconsin and Indiana. It offered 19,925 used automobiles in 2022, up 10 p.c from the earlier yr.