Automotive News Canada - December 2023 - S21

BEST PRACTICES 2023
21
Customers are also feeling financial
pressure because of recent interest rate
increases. That has led many to seek
vehicles with lower prices, which often
means used, Antony said.
In early June, in a further attempt
to stem inflation, the Bank of Canada
raised the overnight lending rate
one-quarter of a point to 4.75 per cent.
PROFITS DOWN, USED CARS UP
AutoCanada's profitability fell in the
first quarter, a result of the same interest
rate pressures experienced by its
customers, as well as poor performance
at its U.S. dealerships. New-vehicle sales
volume also declined to 8,771 units, 3.1
per cent lower than the same threemonth
period a year earlier.
But as new-car volumes dipped,
AutoCanada's used business continued
to expand. The group reported used-vehicle
sales of 15,290 units for the first
quarter, up 8.7 per cent from the same
quarter a year earlier and not far off its
record for a quarter, set during the busier
spring selling season.
The used-car focus has also helped
AutoCanada boost profitability in
finance and insurance departments and
its parts, service and collision repair
business, Antony said. Gross profit in
F&I rose 5.8 per cent, while parts, service
and collision gross profit rose 19.7
per cent compared with the same quarter
a year earlier.
Among other steps to boost profitability
within its used-vehicle sales wing,
the dealership said, it has
delivered more than 34,000
kilowatt-hours of electricity
to EVs, the equivalent electricity
use of 3,855 litres of
gasoline.
* A recently installed
cardboard compactor
reduced the need for waste
pickups to once a month
from 20.
* Single-use plastics in
the bistro have been eliminated.
*
To reduce paper and
plastic wrapping and
reduce food waste, sandwiches
are made to order
instead of being pre-made
and wrapped.
* For exterior maintenance,
leaf blowers are electric.
*
Four trees have been
AutoCanada made considerable
progress increasing used-vehicle
sales. In 2018, it sold 0.62 used
vehicles for every new one. For the
first quarter of this year, that ratio had
risen to 1.72. FILE PHOTO
AutoCanada has prioritized reducing
the amount of time it takes to recondition
vehicles.
In 2018, Antony said, the company
took about 48 days to prepare used vehicles
for sale. In the latest quarter, that
figure was between 27 and 28 days, helping
trim floorplan financing costs.
But cutting reconditioning timelines
remains a work in progress, with the
industry average running between 10
and 14 days, Antony said.
PROMISING PARTNER IN KIJIJI
An expanded partnership with the
online classified site Kijiji.ca, which
lists 1.4 million for-sale-by-owner vehicles
on its platform each year, represents
another used-vehicle growth
avenue, Antony said.
The deal, announced March 31,
builds on a previous relationship
between the two companies. It will
planted - including a
Kentucky coffee tree, identified
as a species under
threat in Canada - to
enhance biodiversity.
A SUSTAINABLE FUTURE
Laval BMW and Laval
Mini are never done with
their greening efforts, said
D'Argenio. A sustainability
committee meets quarterly
to discuss progress and generate
new ideas.
BMW values such local
leadership, said Scott of
BMW Group Canada.
" We look forward to
seeing BMW Laval resubmit
with new initiatives in
2023 and hope their efforts
inspire other retailers
across the country. "
BMW Laval and Mini
allow AutoCanada to market its F&I
products on vehicles sold on the platform,
as well as purchase used vehicles
on the site to add to its own inventory,
Antony said May 4.
Despite prompts from financial
analysts on the earnings call, Antony
divulged few other specifics about
the Kijiji deal but said the company's
opportunity with
the online marketplace
is " of an exclusive
nature. "
AutoCanada
would not make
Antony available for
an interview on the
company's used-vehicle
business.
While Canada's
only publicly traded
dealership group is
increasingly dialed
into its used-car
operation, Antony
said these customer
relationships eventually
come full circle.
" We're
positionAntony:
" We
want to become
untethered to
the constraints
that we have
on the new-car
business and
[with] selling
just new cars. "
FILE PHOTO
ing ourselves to sell volume and to sell
used vehicles in order to drive business
through our shops and dealerships that
we think is more sustainable, " he said.
" And eventually, that used-car customer
- if we treat them right and service
them well - they end up becoming a
new-car customer. " - ANC
Laval sold 1,500 new vehicles
and 1,200 used in 2022.
Fifteen per cent of the new
vehicles sold this year to
date are EVs, D'Argenio
said. Quebec offers EV purchase
incentives of up to
$7,000.
The stores have 170
employees in their retail,
service and collision facilities.
- ANC
Three generations of BMW Laval and Mini Laval, left to
right: President Carmine D'Argenio; his son, General
Manager Massimo D'Argenio; and Carmine's father,
founder Gerardo D'Argenio. The stores have been part
of dealership group AutoCanada since 2014.
SUPPLIED PHOTO
http://www.Kijiji.ca
Automotive News Canada - December 2023

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