Car-Mart acquires longtime Lone Star State operation
After acquiring the assets from two different independent operators last year, America’s Car-Mart finalized a similar move this week, announcing that the chain of buy-here, pay-here dealerships entered into a definitive agreement to purchase the ongoing dealership assets of Credit-Line, Inc., and Loanco, Inc., both Texas corporations doing business as Taylor Auto Credit.
As a result, the Car-Mart will be entering a new market in Taylor, Texas, which is located northeast of Austin.
According to a news release, the existing finance receivables will be excluded from the transaction and will be collected by the seller.
Car-Mart expects to close the agreement prior to the end of December.
“As previously communicated, we expect acquisitions to continue to generate outstanding returns for our shareholders, an exit strategy for owner-operators, and future growth opportunities for their associates,” Car-Mart chief executive officer Jeff Williams said in the news release. “In our markets, the best competitors have generally been a subset of the owner-operated dealerships — those operated by individuals who have chosen not to borrow excessively, focus on getting a sound automobile to their customers on reasonable terms, and provide both friendly service and disciplined collections.
“We believe we have developed a successful acquisition template which works for both parties,” Williams added.
Last year, Car-Mart announced purchases of the ongoing assets of The Car Man LLC in El Reno, Okla., as well as the ongoing dealership assets of Smart Auto Inc., which included Smart Auto Johnson City and Bright Motors Co., in the Tennessee markets of Johnson City and Knoxville.
And now Car-Mart has a presence near the capital of the Lone Star State.
“We are excited to be adding the Taylor, Texas area to our footprint and expanding our customer base in a thriving and growing market. Samsung is currently building a $17 billion semiconductor plant near Taylor, expected to bring 1,800 jobs to the area,” Williams said. “Taylor Auto Credit brings a rich history of serving customers with a talented team of associates that we welcome into the Car-Mart family. We are excited for the opportunities to grow our business in this market. In addition, we also expect to close on our previously announced acquisition of the second Smart Auto location in Knoxville, Tennessee at the end of December 2022 as well.”
Williams highlighted Taylor Auto Credit, previously owned and operated by Keith and Marcia Hagler, has been in business since 1990.
“Their values align perfectly with ours. We are looking forward to getting to know customers and to continue their great history of ‘keeping them on the road,’” Williams said. “They will be a fantastic addition to our business and will help us build a better future for the company, our associates, and our customers."
Keith Hagler previously served as president of the Texas Independent Automobile Dealers Association.
“Taylor Auto Credit has called Taylor, Texas home for over 30 years. With that being said, we are elated to announce America’s Car-Mart’s acquisition of Taylor Auto Credit. This acquisition is exciting news for Taylor, Texas and all surrounding areas,” Hagler said in the news release. “Our goal at Taylor Auto Credit has always been to keep our customers on the road, while providing the best customer experience from day one; America’s Car-Mart will continue to do just that.
“My wife, Marcia, and I are thankful that we have the opportunity to join one of the largest publicly held automotive retailers in the United States in our industry. After 30 years, seeing the end of Taylor Auto Credit is sad, but giving our team a future is the main priority. America’s Car-Mart is superior and will provide a better future for all associates and future customers,” Hagler continued. “We are thankful for the leadership within Car-Mart; they have a heart for people which has resulted in success and will continue to do so for generations to come. We are thankful for this opportunity and ready for what lies ahead.”