Sonic Automotive Continues Used-car Dealership Expansion with New Location in Nashville

10/19/20

By Jay Wilson, NC BIZ News

Sonic Automotive, one of the largest car retailers in the U.S., is continuing the aggressive nationwide expansion of its used-car dealership brand, EchoPark, with the newest location opening in Nashville, Tenn., according to a press release on Monday.

The Nashville store will be EchoPark’s 13th location nationwide. Sonic Automotive previously announced plans in its second-quarter earnings call to open 140 EchoPark locations in the U.S. by 2025, intending to sell over half a million pre-owned cars per year. Sonic Automotive launched its EchoPark brand in 2014.

During the coronavirus pandemic, demand for used cars has seen an uptick as more consumers have moved away from newer, higher-priced car models to pre-owned vehicles as a cost-cutting measure.

“Quality, pre-owned vehicles are in high demand across the nation,” Sonic Automotive CEO David Smith said in the release.

“An increasing amount of customers who had only purchased new vehicles in the past are making the switch to nearly new pre-owned vehicles, which really illustrates the power of the EchoPark brand,” Sonic Automotive president Jeff Dyke added.

The Nashville location will serve as a regional “hub” where customers can shop 1-4-year-old vehicles priced 20-40 percent below new car pricing. Customers can also shop the full lineup of previously-owned cars the company offers at EchoPark.com.

The company expects to continue its expansion with new-store openings in Arizona, Georgia, Nevada, South Carolina, and Texas in the coming months.

The company will announce third-quarter earnings on Oct. 29. The company previously announced an updated outlook for its third-quarter earnings, with diluted earnings per share expected to range from $1.08 to $1.15, a 64 to 74 percent increase from the same quarter last year.

Shares of Sonic Automotive (SAH) were last trading up 58 cents, or 1.48 percent, near $40.17.

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