In today’s episode of Inside Automotive, we’re catching up with Doug Eroh, the President and General Manager of Longo Toyota and the President of Penske Motor Group. Doug recently celebrated the grand opening of a stunning new showroom, and we’ll dive into the details. We’ll also explore how inventory levels are shaping up, discuss electrification, and look at used car prices for this year.
Key Takeaways
1. Longo Toyota recently completed a 40,000-square-foot showroom renovation. Eroh emphasized the facility’s significance for employees and customers, enhancing transparency and fostering a welcoming environment for all.
2. About 50% of Longo Toyota’s new vehicle sales are electrified models, primarily hybrids. This shift is driven by California’s high fuel prices and consumers’ need for better long-term vehicle affordability.
3. Despite tight new car inventory, Longo Toyota is on track to sell 5,000 used cars, marking its best year yet. Eroh credits this to affordability concerns, as many consumers turn to used vehicles to manage rising costs.
4. Leasing at Longo Toyota has doubled since 2022, though it’s not quite back to pre-pandemic levels. Eroh sees this as essential for future success, providing a steady flow of returning customers and lease returns.
5. Rising interest rates and affordability remain top concerns for Eroh. With the average new car price approaching $50,000, he stressed the challenge of balancing customer affordability with limited inventory.
“We are pacing for our best-ever used car year this year, which I’m proud of our team for that accomplishment. We’re working hard to get to 5,000 used cars, which would be the first time we’ve ever hit that.” – Doug Eroh.
