We have developed a complementary relationship between our franchise dealerships and our EchoPark stores that creates value for shareholders. Our franchised dealerships are thriving in an environment where new car sales are strong, especially for luxury vehicles. EchoPark supplies us with a complementary revenue stream and provides a hedge to our franchise dealership segment. EchoPark’s defensive business model allows it to grow quickly, even in an environment where pre-owned car prices are declining.
We utilize a unique, high-return business model for our EchoPark segment. These dealerships only focus on the pre-owned market, which removes OEM selling demands. Most of the cars and light trucks sold at EchoPark are between 1 to 4 years old and have existing warranty coverage. Our ultra-low pricing strategy and simplified easy purchase experience has contributed to our strong growth.
Our franchised dealerships consist of 108 dealerships and 16 collision centers in major metropolitan areas across the nation. Our stores have multiple growth drivers including continued F&I improvements, purchasing potential high-return franchise locations and improving pre-owned sales execution.
As of Dec. 31 2022 • 10-K
We have developed a comprehensive strategy to continue growth and reduce costs for each of our operating segments.
The EchoPark business operates independently from our franchised businesses. Our long-term goal for EchoPark is to develop a nationwide omnichannel distribution network reaching 90% of the U.S. population at maturity.
Our personalized sales process is designed to satisfy customers by providing high-quality vehicles and service in a customer-friendly environment.
We have developed standardized operating playbooks for our stores, which provide organic growth opportunities by offering a more favorable car-buying experience to our customers while also creating operational efficiencies in our business. We believe constant refinement of these operating playbooks will continue to enhance the customer experience and increase our market share while driving long-term shareholder value.
We have multiple revenue streams at our franchised dealerships, including new vehicle sales, used vehicle sales, arranging finance and insurance products, and parts, service and collision repair services. Used vehicle sales and parts, service and collision repair tend to be less sensitive to economic cycles and seasonal influences than new vehicle sales.
Find out more about the seasoned professionals on our management team and board of directors.
