It became important to Farkas to cater to consumers who want to sell their vehicles “without feeling the pressure” to buy another.
Even the buying centers housed within Germain dealerships are deliberately placed far enough away from the showroom floor to reduce consumer intimidation, Farkas said.
“To a point, it’s on their terms,” he said.
Based on the success in Jackson, Germain in 2021 opened a standalone center in Dayton, Ohio, about 20 minutes from the group’s Honda and Ford dealerships in the market, Malishenko said.
With the buying centers functioning as a viable source of inventory, Germain’s reliance on wholesale auctions has plummeted.
In Michigan, about 44 percent of the used vehicles Germain puts up for retail sale come from the buying centers. Another 42 percent are obtained via trade-ins, with the remainder coming from auctions, Farkas said.