National auto dealer Sonic Automotive Inc. will launch a used-car sales concept in Denver that it describes as “a real game-changer.”
Named EchoPark, the dealership will offer no-haggle pricing and stores organized differently than traditional car lots.
Sonic plans to open three branches in metro Denver by the end of the year, with plans for more next year. Pending results in Colorado, the brand will then go national.
“It’s a cross between Starbucks and an Amazon online concept,” said Jeff Dyke, executive vice president of operations for Charlotte, N.C.-based Sonic Automotive.
EchoPark will be built on a hub-and-spoke model, with the hub store on East 104th Avenue in Thornton carrying 500 to 700 cars at any given time. Smaller spoke stores in other metro Denver locations will carry 75 to 100 vehicles. Where physical layout allows, the car lots will be located behind the stores instead of in front.
EchoPark will be “very different from the experience at a traditional dealership, including ours,” Dyke said.
“This will be nontraditional. People won’t see a big-box car dealership with the bright lights and big flagpoles and all that junk,” Dyke said.
Customers will deal with only one associate compared with other systems where buyers may interact with separate staffers for sales, finance and appraisals. Dyke said EchoPark’s goal is to complete transactions in less than one hour, with minimal paperwork.
He said metro Denver was chosen as the launch location because it has a high volume of used-car sales and because Sonic is familiar with the market.
Some analysts have compared the new concept to used-car retailer CarMax Inc., a national dealership with Colorado outlets in Littleton, Federal Heights and Colorado Springs.
Tim Jackson, chief executive of the Colorado Automobile Dealers Association, said EchoPark’s competitive impact on other Colorado dealerships will start small but is likely to grow over time.
He said that as the company expands its national footprint, it will benefit from the ability to move cars from one region to another to fill particular demands.
“It will create more competition,” he said, “there’s no doubt about it.
“I think it will elevate the marketplace for Colorado consumers, and elevate the standards in that (used-car) segment.”
Steve Raabe: 303-954-1948, sraabe@denverpost.com or twitter.com/steveraabedp
