Sonic Automotive Inc. expects to rapidly grow its standalone used-only EchoPark brand to $14 billion in revenue and 575,000 sales in five years — from $1.2 billion and nearly 50,000 in sales in 2019 — as it adds 130 distribution points and dealerships to its current 11.
The quickened pace and breadth of Sonic's EchoPark plan includes adding about 25 dealerships in five years, plus 20 delivery and buying centers annually for five years, Sonic President Jeff Dyke said.
"We just think it's a great way to deliver a fantastic guest experience, customer experience, but also maintain a cost structure and the model that will allow us to do it profitably," Sonic CEO David Smith told Automotive News.
The delivery and buying centers — where vehicles sold online can be picked up and customers can sell vehicles to EchoPark — are smaller than EchoPark stores. They cost $1 million to $2 million, compared with $7 million to $25 million to build a full EchoPark dealership, Sonic said.