Retail Markets

Illinois

Randy Crase, owner, Crase Auto Connection, Channahon, Ill.

“We opened in June of 1992. We have been lucky enough to buy a few of the adjacent properties.

“We have an average of 8085 cars on site, and always seem to have another 20 or 30 waiting.

“Two years ago, we sold over 60 a month. Last year we were just under 50. Our two-year averages for vehicle type sold are 45% trucks, 35% SUV and 20% cars.

“We definitely sell more domestics, we’re 40 miles outside of Chicago, kind of a rural town. Chevys and Fords are good for our demographics.

“Reconditioning has gone through the roof. It hurts our turn a bunch. We used to source most of our vehicles from new-car stores, and after COVID hit, they were keeping a lot of those cars. So, a lot of the inventory we were getting at auction needs a lot more recon. Our average is nearly $1,400 a car, compared to a little over $800 two years ago.

“We have a service department, which helps keep some money in our pockets. We are now getting about 50% of our vehicles via auction. I have a few favorite auctions, Manheim Chicago and Rockford Auto Auction. They both have really unbelievable management and support teams.

“We seem to do better with units that are at least 3 years old. Mileage varies. Last week we sold a 2020 Equinox with 18,000 miles, the next day we sold a 2012 Ford F-150 with 200,000 miles. We try to keep our inventory under 100,000 miles.

“The last few years, down payments were a thing of the past. What I am seeing recently is the banks tightening up. Cash is king.

“As far as advice, I don’t think I would tell anyone to get into this business right now. I believe we are going to see a lot of corrections in the next year or so. And if you’re getting in on the seat of your pants (like I did in 1992) you might be looking for trouble.

“Join your state associations, without the help from them, I would not be in business today. Be transparent. If you bought a car with an accident, make sure they know. If you spent a bunch of money on recon make sure they know. Price your cars by the market, not by what you want to make.

“The last car we sold was a 2017 Ford Escape Titanium with 89k, all-wheel drive, for $16,500 plus fees.”

Texas

Ricardo Gardea, owner, Cars Plus, El Paso, Texas

“I’ve been in this business for 40 years. COVID definitely changed our business, quite a bit. We’re doing more online, especially our advertising.

“We usually keep about 40 vehicles in inventory. We sell about 20 a month.

“SUVs are No. 1 for us, cars are No. 2. We don’t sell that many trucks.

“We sell domestics most of the time, we don’t do much with imports.

“About 60 percent of our business is buy-here, payhere.

“We do it a little different for down payments. I usually ask for 40 per cent of the price of the vehicle. That average is usually about $3,000, so it depends on the vehicle.

“I go to the Manheim auc-

Compiled by Ed Fitzgerald

tions in El Paso and Dallas.

“I try to buy cars as clean as possible, but my reconditioning costs probably average about $600. I have mechanics in the back so we do as much in-house as possible. For tires, we send it out to the shops.

“I’m looking for model years of 2012 to 2016. Most of my cars will be over 100,000 miles, about 120,000 or 130,000. We use driveway. com.

“We recently had a yellow 2006 Mini Cooper and a 2017 Chrysler Pacifica family wagon with back captain seats.

“New dealers have to do a lot of research on the rules and regulations. They’re stricter now than before. You have to be in compliance.

“The last car I sold was a 2012 Chevy Equinox. It had 135,000 miles. We sold it for $7,990 with $3,000 down.”