THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, June 25, 1996 TAG: 9606250351
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: 49 lines
A local automobile dealer announced plans Monday to enter the no-haggle used-car superstore fray.
Checkered Flag Motor Car Co. plans to build a $10 million mega-dealership on 16 acres in Virginia Beach. The dealership, to be called Driver's Mart, would carry more than 600 cars and trucks under warranty.
The dealer has not finished acquiring the 16 acres and would not disclose the location of the Driver's Mart site. It plans to open by mid-1997.
Virginia Beach-based Checkered Flag is the latest in a growing number of companies convinced that no-haggle prices and customer-friendly services will bring back shoppers who've grown disenchanted with fast-talking salesman and elusive prices.
There are consumers who enjoy dickering over prices, but their numbers are shrinking, said Edward B. Snyder, Checkered Flag's president.
``The younger people don't like it,'' Snyder said. ``I certainly think women don't like it.''
Driver's Mart is a partnership of some of the nation's largest new car dealers. So far, 20 dealers, including Checkered Flag, have invested in the Grand Rapids, Mich.-based consortium, benefiting from more buying clout and shared information.
Snyder said Checkered Flag, which has six locations, is looking to open a second Driver's Mart in the Richmond area. The Virginia Beach dealer also is considering changing its current dealerships to the no-haggle format, he said.
But can a traditional dealer like Checkered Flag ever become a no-hassle retailer?
George Hoffer, an auto industry analyst in Richmond, has said he isn't convinced that traditional dealers can mimic companies like Circuit City Stores Inc., which owns CarMax, a chain of no-haggle, used-car dealerships. He said some dealers adopt the one-price methods but still dicker in other areas such as financing.
Snyder disagrees. He says his Driver's Mart will eliminate hassles. Plus, he says, dealers know how to sell cars better than Circuit City.
``We're not selling refrigerators; we're selling automobiles,'' he said. ``I've got 32 years of experience selling automobiles. I think I know what the people around here want.''
Driver's Mart wants to have 100 used-car superstores in the next three to five years. It will face competition from Circuit City's CarMax and several other chains.
Circuit City plans to open 80 or more CarMax superstores, including one in Hampton Roads, by 2001. CarMax recently received approval in Chesapeake for a dealership in the city's Greenbrier community. by CNB