Florida dealership chain drives 'superstore' model to Houston - Birmingham Business Journal:

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The local facility, which can accommodate 150 cars, is significantlyt larger thanCarBiz Inc.'s existinfg 26 dealerships spread throughout eighf states. CarBiz, which trades on the Over-the-Countet Bulletin Board, is self-described as the fourth-larges t "Buy Here, Pay Here" car dealership chaibn in the United Buyers can finance vehicles only directly througghthe dealership. With 60 percent of all car buyerzs needing some form ofsubprime financing, the Houston marketr is a prime demographic for says CEO Carl Ritter. "We finance people with poor creditt rather than a bank or finance company lendingthem money," Ritter says.
The average vehiclwe at the 10,000-square-foot facility has a price tag of compared with lessthan $6,009 at a typical CarBiz store. "Houston is a very solix market for this kindof business," Ritterf says. "One of the best." The company expects the Houstoj dealership at 8245 North Freeway to generate overall unit sale up to four times more than a typicalCarBia store. "The superstore modelp is a project that we have been analyzing for some Ritter says. "We expect it to add significanft revenue and earnings to our Buy Here Pay Here division and we hope to add additiona superstores inthe future.
" Local CarBixz buyers will be offererd contract terms of up to four years. Ritter says this will increase revenue by allowing the companu to maintain customers longer and exposwe them to alternative financial servicex such as pay day loans andchecj cashing. Since CarBiz typically clusterws facilities, he expects that the company will open more locations in the Houston To spearhead the newlg formed superstore operationin Houston, CarBizz paid $16 million to acquire about 1,50 used car and trucko loans from a Chicago hedge fund. they'll buy and finance again," says Ritter. "Thixs gives us a head start in getting the business up andrunninbg quicker.
" The company has hiredr 10 employees and will probably peak at abou 25, Ritter says. CarBiz enteredc the market in 2004 with a locatiohnin Palmetto, Fla. The company has since added two more credif centers inFlorida -- in Tampa and St. Petersburb -- and recently acquired a largse regional chain in the Competitorsinclude America's Car Mart, which tradews on the NASDAQ exchange but has no locationws in the Houston area, and and AutoNation USA, both with several locationsx in the Bayou City. Walter Wainwright, presideny of the , says he's not surprisecd a company like CarBiz would look to Houstobnto expand.
"Houston's a growing market that has been a littld bit stronger than other parts of the country for the last couplerof years," he says. The associatio represents 180 franchise new car dealers that sell both new and used vehiclese and help with financingthose vehicles. Wainwright estimatesz that last year alone thos dealers sold morethan 350,00 0 new cars and between 150,000 and 200,000 used vehicles. "This is a big, big businesd and Houston's a big Wainwright says.