Sonic Automotive’s just posted its fourth quarter and 2013 earnings – net income was down 8% in Q4 as a “transition year” came to an end where changes were made in stores to prepare for 2014. The company will be launching a new customer experience initiative later this summer – and stand-alone used vehicle stores later this year. Implementing a new pricing strategy was one of the challenges taken on last year that some of Sonic’s stores have struggled with.
Sonic will roll out its One Sonic-One Experience initiative on July 1, which aims to simplify the purchase experience by using iPads to handle vehicle sales from beginning to end. Sonic expects it will lead to shorter transaction times, better customer satisfaction, lower employee turnover, and higher sales.
As for the stand-alone used vehicle stores, that will begin in Denver during the fourth quarter of this year. “As we have demonstrated over the last several years, one of our core competencies and competitive advantages is our ability to execute in the pre-owned space,” said Sonic President Scott Smith. “We intend to capitalize on this strength.”
Sonic Automotive’s used vehicle revenue was up 6% over 2012. Revenue per unit for used vehicles was $20,327 in 2013 – $304 or 1.5% over 2012. Gross profit per unit was $1,405 – up 0.4% over 2012.
In its financial report, Sonic Automotive said that its used vehicle revenues have been directly affected by the level of manufacturer incentives on new vehicles, the number and quality of trade-ins and lease turn-ins, the availability and pricing of used vehicles acquired at auction, and the availability of consumer credit.
