I'm talking about Texas Direct Auto, which has $500million in NATIONAL AND LOCAL used car sales out of ONE location in Stafford, Texas (just southwest of Houston).  They opened on eBay years ago, and nearly by the time they published their book "Zero to $60million" they had broken $100million in sales.  Nowadays, they use AutoTrader and Cars.com, but they haven't always.

They are open 9am-6pm, Mon-Saturday.  They achieved $100million as appointment-only when they were in their smaller facility, but you can visit during open hours now and see some automation to help you select a car--and then wait for a salesperson without an appointment, if you want.

Very few successful clones have arrived through the years, which has always surprised me.  Back when they reached $100million, I put a business plan in front of a dealer to compete using their methods--and he balked because he said (at the time) "There's probably not another $100million in it, they've got it locked up."

I wonder if he would now like a piece of the $400million to which he turned his nose up?

Texas Direct Auto sells nationally and locally and are the #1 eBay dealer in the world.  They reached $100million WITHOUT anything but eBay.  NO PPC, SEO, social media; no print, radio, billboards, or TV, either.  All which they have added now in the years since eBay-only and have been accelerants to their core business.  Though all were not added at once.

The sales staff has a life outside the dealership, gets good money and benefits, and has great hours for this business.

My question to us all is:  At $500million, why does this dealership model get no traction in other dealers' minds?  What is the leap they can't take?  And why do vendors not do case studies to understand THIS dealer's success so we can learn from it?

I'd really like some answers.  Thanks!

by Keith Shetterly, Copyright 2012
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