High-end is now in for auto showrooms

Published 12:00 am Sunday, September 21, 2014

For Austin, Texas, the August gathering was a fairly typical party scene: More than 700 guests coming together to celebrate the summer, enjoying food, drinks and music by a local band.

But this party wasn’t at a club or a local music venue.

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It was at First Texas Honda auto dealership.

The days of cramped, stodgy and sterile auto dealerships appear to be over in Austin and the region, as dealers — eager to stand out in a competitive market — are transforming their facilities into high-end showplaces complete with expansive event spaces, gourmet coffee, designer furniture, WiFi, flat-panel TVs and kid-friendly play zones.

About a dozen Central Texas auto dealerships either have undergone recent expansions or are planning extreme makeovers in the coming year, pumping millions of dollars into the economy as they add expanded, slick showrooms with a slew of guest perks.

The mission, industry experts say, is to get customers who increasingly do their shopping online to visit brick-and-mortar stores more for service appointments and shop during their stays.

“Automotive companies took notice that customers’ likelihood to return to purchase their next vehicle, or return for service were much higher when they were completely satisfied with these appearance measures,” said Shawn St. Clair, director of syndicated research for Maritz Automotive Research. “The next step has been to upgrade facilities. Some manufacturers mention trying to make the customer experience similar to something you might find at an Apple store.”

Car buyers make an average of 1.3 visits to dealerships before buying a vehicle, down from 4.5 visits a decade ago, according to the National Automobile Dealers Association.

“Today the retail-automotive landscape is more competitive than ever, and franchised new-car dealers across the country are always thinking of new, creative ways to stay ahead of the competition and exceed their customers’ expectations,” said Charles Cyrill, the National Automobile Dealers Association’s director of media and public relations.

First Texas Honda is doing just that. The dealership hosts events regularly, including a “First Texas by West” event during the South by Southwest festival and an October March of Dimes fundraiser.

The facility boasts a fully staffed, 50-foot coffee bar with 12 different espresso and coffee drinks, a loaner car and bicycle service, valet service and the largest Honda service department with 120 bays.

The dealership also brags about the diversity of its employees, which includes Courtney Audain, a musician who was with the band Timbuk 3, which performed the hit “The Future’s So Bright, I Gotta Wear Shades.”

“We wanted to see how we could give a mid-level car owner a luxury car experience,” Jim Olmstead, general manager at First Texas Honda, said of the 21-acre dealership, which moved into its current location in 2012.

Olmstead said he and other staffers spent a month visiting Lexus of Austin, which since its own 2011 renovation now houses a clothing boutique, among other perks. From there, Olmstead said his mission was to copy their features — but on an even bigger level.

Big changes also have come recently for AutoNation Toyota South Austin, which completed an $18 million, four-year renovation project this summer.

“We don’t look old anymore,” said Dennis Annabelli, the dealership’s general manager. Pointing at his shiny white tiles in the showroom, he said, “We look modern. You can see the engine’s reflection on the floor.”

Jaguar Land Rover of Austin also completed a major renovation at their downtown location this year, more than doubling its indoor facility to 10,000-plus square feet, said Alan Cirota, general manager.

“I think the customers are expecting upgrades and want to be pampered,” Cirota said. “So you’ve got to keep up with the times.”

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