Penske Automotive Group is expanding again in the pre-owned sector.

In late 2007, the Bloomfield Hills, MI-based group opened two stand-alone used-vehicle buildings in Indianapolis. They are annexes to Penske Honda and Penske Chevrolet.

Now, Penske has opened the Scottsdale Wholesale Outlet to serve its 23 dealerships in the Phoenix-Scottsdale, AZ market.

The Scottsdale outlet, near the group's 11-store Scottsdale new-vehicle mall, specializes in retailing trade-in units “that are in good working order but may have high mileage,” says Penske senior Vice President Tony Pordon.

Vehicles at Scottsdale Wholesale will be offered in three ranges, says Pordon. They are $10,000 and below, $10,000-$20,000 and over $20,000.

The outlet rules out haggling on prices and sets prices based on the Kelley Blue Book numbers, plus Penske's margins. Dealers and wholesalers are invited in on Mondays and Tuesdays with the public welcome on Wednesdays and the rest of the week.

“If this model is successful, we may open wholesale outlets in other markets,” says Pordon.

Penske has also turned to the Internet with Penske Direct, a Web site that offers pre-owned vehicles costing $50,000 and up. Bids are made on eBay, and virtual tours of cars for sale are featured.

“We've sold Audis, Bentleys and Mercedes-Benz cars priced over $50,000 on Penske Direct,” says Pordon. “We find that it enables our stores to sell all over the country.”