Bentonville-based America’s Car-Mart will expand into Illinois when it buys the dealership assets of Taylor Motor Co. and Auto Credit of Southern Illinois, based in Benton, Ill. The Taylor Motors companies will be purchased by a Car-Mart subsidiary.
Financial terms of the deal were not disclosed. However, the existing finance receivables of the companies will not be included in the purchase, and the properties that will be purchased will be leased. The deal is expected to close in January 2020.
“We are very excited for this opportunity and to be gaining three dealership locations in Marion, Benton and Mount Vernon, Ill., as well as a vehicle reconditioning location in Benton, Ill.,” said Jeff Williams, president and CEO of America’s Car-Mart. “Illinois will represent out 12th state and these locations are near existing Car-Mart dealerships in surrounding states.
“Taylor Motors has served southern Illinois for over 88 years and has strong sales volume productivity with a dominant market position in its service areas. The company has operated at a very high level for over 25 years under the leadership of Steve Taylor, a third-generation owner, and his talented, experienced team of associates. Like Car-Mart, Steve and his team focus on keeping customers on the road by selling good, solid mechanically sound vehicles and taking care of customers after the sale. Steve and his team will be joining our team, and Steve will be contributing to our expansion efforts into the future.”
The deal will be the first time Car-Mart has purchased a group of dealerships, but it purchased a couple of one location dealerships several years ago, Williams said. Taylor will no longer operate dealerships as a result of the deal.
Car-Mart also is working to open dealerships in Cabot, Chattanooga, Tenn., and Edmond, Okla. The buy here, pay here used car dealer had 145 dealerships in 11 states as of the end of the second quarter of fiscal 2020, which ended Oct. 31. On Nov. 18, Car-Mart reported net income rose 23.1% to $13.88 million, or $2 per share, in the quarter. Revenue rose 13.8% to $190.31 million.