Used-Car Sales Help In This Competitive Market

With 13 Chevrolet dealerships within a 20-minute drive of each other, the Portland, OR, market is highly competitive.

“I know there are other areas that have more dealers,” says Brad Preble, vice president of the Carr Chevrolet Inc. in Beaverton, OR. “But we don't have the population to support that many.”

Preble says he tells stories about what goes on in the market to members of his 20-Group (a dealership benchmarking group) that has them shaking their heads.

“A lot of cars are advertised for under invoice here,” he says.

Still, Carr Chevrolet is thriving, ranking 55th on this year's Ward's Dealer 500 with $184.6 million in total revenue. Carr has been in the Portland market since 1941 and was bought by Wallace Preble and Gene Bradshaw in 1989. Both owners have two sons in the business.

“We are highly nepotistic here,” laughs Brad Preble, one of the sons. “We all have our responsibilities and stay in our lanes.”

The dealership has grown in part thanks to its used-car operations. Its 4,456 sales lead the Ward's 500 this year.

“We treat our used-cars as a separate brand,” Preble says. Ten years ago, the dealership developed its own in-house inventory-management software, with similar ordering packages based on model and classification. Management is able to keep a rein on days supply and inventory turns. As a result, wholesale losses are minimal, if they happen at all.

“It's something I do every Monday,” Preble says. “ We make decisions on how to classify each of the used vehicles that we have taken in.”

Carr also developed its own 12-month/12,000-mile warranty 120-point certification program, which is stronger and easier to sell than the manufacturer's, according to Preble.

Another wrinkle is a used-car one-price selling system owners Preble and Bradshaw created in the 1970s, when they owned an area Ford Motor Co. dealership. Customers know when they see a price, that is what they will pay for the vehicle.

The sales staff is salaried and handles both new and used cars.

“It's really the entire selling and operating system that is in place here,” Preble says. “Our sales staff, while still sales people, sell from a consultative approach. It is one of our selling points — we'll try to find the car that is right for our customers.”

The dealership is getting ready to launch the one-price system for its new cars this year.

Top 10 Used Units