CARY, N.C. – In addition to a couple moves on the franchised side of its operations, Sonic Automotive said Wednesday it has opened an EchoPark Automotive delivery center in Pensacola, Fla., the fifth new EchoPark location the retailer has announced in the past week.
Sonic launched its first Florida location for EchoPark last year, opening a Tampa location in April 2020.
“The demand for a modern, consumer-friendly, pre-owned vehicle purchase experience continues to grow, and we are excited to introduce our unique EchoPark experience to the Florida Panhandle, where we will offer a new population of car buyers an exceptional selection of high-quality, pre-owned vehicles, priced up to $3,000 below market with a modern, flexible guest-centric experience.” Sonic and EchoPark chief executive officer David Smith said in a news release.
Added Sonic and EchoPark president Jeff Dyke, “As more people get back on the road, consumers are increasingly looking for a better value in their pre-owned vehicle purchase. EchoPark’s mission is to offer our flexible, seamless car-buying experience to a growing population of happy guests as we continue to expand our nationwide reach.”
Sonic announced the opening of an EchoPark delivery center in Louisville, Ky., on Tuesday.
On Thursday of last week, the retailer announced an EchoPark Automotive retail sales center in Marietta, Ga., to serve the greater Atlanta market as well as an EchoPark delivery center in Salt Lake City.
Then on Friday, Sonic added an EchoPark delivery center in Greensboro, N.C., to serve the Greensboro-Winston Salem-High Point market.
On the franchised dealership side of its operation, Sonic also announced Wednesday it has purchased Grand Junction Subaru and Grand Junction Volkswagen in Colorado.
The acquistion of the Subaru store adds another brand for Sonic.
According to a news release from Kerrigan Advisors (which represented the seller in this transaction), the stores were purchased from Ron Bubar.
“In today’s record-breaking buy/sell market, it was important to identify a buyer who recognized the value of what Ron and his team created in Grand Junction and the tremendous benefits of operating in the Grand Junction market,” said Erin Kerrigan, the firm’s founder and managing director, in a news release.
“Sonic Automotive really understood the unique position these dealerships held in their community and also has a powerful commitment to customer service that will ensure Grand Junction’s legacy continues.”
With the addition of these dealerships, Sonic now operates six franchise dealerships in Colorado. It also has EchoPark locations in Thornton, Centennial and Colorado Springs.
Regarding the acquisition of the Grand Junction stores, Smith, the Sonic CEO, said: “We are very excited to add these two great franchises to the Sonic Automotive family, further strengthening our automotive sales and service network in the Colorado market.
“Each of these award-winning dealerships has demonstrated a long-standing commitment to its customers and the local community, which is key to the success of our growth strategy,” Smith said. “These acquisitions represent another measurable step toward our goal of $25 billion in total revenues by 2025.”
Dyke added: “These two franchises represent the first of several upcoming acquisitions for our franchised dealership business, and we are pleased to add Subaru to our brand portfolio and continue to grow our partnership with Volkswagen.
“Both of these brands are in high demand in the Colorado market and will allow us to continue to expand our network in the western part of the state, reaching new consumers beyond our existing footprint,” he said.
Kerrigan Advisors is the premier sell-side advisor and thought partner to auto dealers nationwide. The firm advises the industry's leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses. Kerrigan Advisors has represented some of auto retail's largest transactions and advised more of the largest dealership groups in the US than any other buy/sell firm in the industry. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, the firm does not take listings, rather they develop a customized approach for each client to achieve their personal and financial goals. In addition to Kerrigan Advisors' sell-side advisory and capital raising services, the firm also provides a suite of consulting services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.
Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors' signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments.—To download a preview of the report, click here.—The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail.—To access The Kerrigan Index™, click here.—To read the—2023 Kerrigan OEM Survey, click here.—Kerrigan Advisors also is the co-author of NADA's Guide to Buying and Selling a Dealership.
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