Used Car Super Stores on a Rampage

06/13/96

The nation's two biggest used car super stores have both announced plans to expand their operations. H. Wayne Huizenga's Republic Industries, Inc. has announced their intention to buy CarChoice, Inc. in addition to AutoNation USA, which they are already buying, while Circuit City has announced plans to expand their CarMax superstore operation to between 80 and 90 superstores in 45 of the country's top 50 markets by the year 2000.

H. Wayne Huizenga, Chairman and Chief Executive Officer of Republic, stated, "With CarChoice and AutoNation USA, Republic will become a leading force in the used car industry. Together, these acquisitions will give us a substantial presence in several major markets and a solid foundation for expanding our concept across the United States."

CarChoice currently operates superstores in Dallas, Texas and Detroit, Michigan and has nine additional sites under development. Republic will pay approximately $95 million for CarChoice, and the deal will be financed through the issuance by Republic of shares of its common stock.

CarMax opened its first superstore in Richmond, Va., in October 1993, bringing no-haggle pricing into the used car superstore arena. The company now has a five stores--one each in Richmond, Va., Charlotte and Raleigh, N.C.; and two in Atlanta. The company plans to enter the Tampa and Orlando, Fla., markets later this year. Next year they will open eight to ten superstores in cities that include Miami, Dallas/Fort Worth and Houston. They will add 15 to 20 superstores a year after that. The company has more than 40 sites under development.

Paul Dever -- The Auto Channel