New River auto group divests two more dealerships

On July 15, New River Valley automobile dealer Gary Duncan sold his Christiansburg Honda and Hyundai dealerships to New River Valley-Owned Shelor Motor Mile.

Duncan declined to provide financial details. Representatives from Shelor Motor Mile did not respond to requests for comment.

The deal follows Duncan’s 2022 sale of his Roanoke-based Acura, Audi and BMW franchises to the Parks Automotive Group of Kernersville, North Carolina.

In 1955, Gary Duncan’s father, Paul, launched the Duncan Automotive Network, which Gary Duncan and his siblings continue to run today. As the oldest child, Gary Duncan was first to work alongside his father and assumed ownership of the network’s early franchises after Paul Duncan’s death. 

Remaining in the network are Duncan Ford Mazda Lincoln (Blacksburg), Duncan Ford Chrysler Dodge Jeep Ram (Rocky Mount), Duncan Imports and Classic Cars (Nashville, Tennessee, and Christiansburg), Duncan Suzuki (Pulaski), Byrider (Roanoke), and Duncan Service and Pre-owned (Roanoke).

On his motivation to sell, Duncan cites the greater economy of scale a larger buyer’s group like Shelor Motor Mile can offer, including better benefits for employees.

But “age was a factor,” Duncan adds, noting that at 72 years old, with 52 years in the business, he’s ready to relinquish some responsibility.

The trend of small businesses selling to larger buying groups isn’t unique to the automotive industry, says Don Hall, president and CEO of the Virginia Automobile Dealers Association. 

“Like so many other industries, ours is undergoing massive consolidation,” he says, forcing owners such as Duncan to make difficult decisions. 

Car dealerships have to purchase the cars on their lots, Hall points out, so smaller operations with less buying power might struggle to keep ample inventory. Technology allowing buyers to check out a vehicle before ever entering a showroom can also be a significant expense, one that may be easier for bigger outfits with bigger pocketbooks to afford, Hall suggests.  

Despite such challenges, Hall contends there is still a place for small businesses in the automotive trade. “Local communities benefit by having smaller franchises around,” he says.

“It’s an exciting time to be a dealer,” Hall adds. “Whether you’re small or super large, if the customer isn’t a priority … you won’t enjoy the future of our business.”