Penske Auto Group increased used vehicle revenue 21.9% during the fourth quarter of 2013 – and reached $1.1 billion in used vehicle sales revenue during that time period. When asked by investors during the quarterly conference call on how this was accomplished, here’s what Chairman Roger Penske had to say:
- Internet sales have helped move used vehicle transactions. Internet marketing and the www.penskecars.com website have been successfully – the internet has given the dealer group “a real lift,” he Penske said.
- Penske Auto Group has a mobile app now which was rolled for penskecars.com with iTunes and Google, and it’s making a real difference. “I can be sitting with you anywhere and we can bring up Penske cars and it shows our entire new and used car inventory,” Penske said.
- The dealer group has a big leasing portfolio and the off-lease trend has been very good for Penske Auto Group’s used retail sales.
- They’re putting warranties on used vehicles with higher mileage – usually three-to-six months on the powertrain.
- About 60% of the cars coming out of its rental car fleet have gone straight to Penske dealers, and it’s been a valuable used vehicle source.
- Loaner cars has been another area of focus for Penske dealers lately. They’re trading them in six-to-nine months now instead of waiting for a year.
- Penske’s used vehicle supply was 46 days at the end of December compared to 48 days last year.
- Finance and insurance revenue increased 17.4%, and service and parts had another solid quarter with revenue improving 10.2% during the fourth quarter.
