City Auto

What City Auto does

City Auto Sales LLC is an independent, founder-led used car dealership group headquartered in Memphis, Tennessee. Operating since 1986 under CEO David S. Andrews, the company runs four physical retail showrooms - in Memphis, Murfreesboro, and Chattanooga (TN) plus Madison/Huntsville (AL) - and represents the Mitsubishi franchise at Murfreesboro. Its core offering is a no-haggle, sub-$25K-weighted used vehicle inventory of nearly 1,000 units across 35+ brands (including electric and hybrid models from Tesla and Rivian), aimed predominantly at individual consumers and secondarily at small commercial fleet buyers. The group claims to have sold nearly 500,000 vehicles over its history and carries a 4.6-out-of-5 rating across 4,419 Google reviews.

The product portfolio layers ancillary revenue on top of retail sales: City Auto Certified provides a 30-day express warranty plus extended warranty options, City Auto Commercial provides fleet procurement and customization through a dedicated team, City Auto Finance Center intermediates with top-tier lenders (including Ally Financial for commercial credit), City Auto Service runs maintenance and repair operations at Memphis and Murfreesboro with a 10-bay shop, and Value-Your-Trade / Sell-Your-Vehicle provides trade-in appraisal. A 5-Day/300-Mile Exchange Policy, effective July 4, 2025, materially lowers buyer risk. The technology surface is a content/inventory website with online filtering, financing calculators, and service scheduling, plus Mitsubishi's ClickShop purchase-initiation platform deployed at the upcoming Antioch Gallery (grand opening July 2026).

The business model is sales-led with five revenue streams: (1) one-time vehicle sale gross profit on retail and commercial units, (2) finance and insurance (F&I) commissions from lender partners on retail and commercial credit, (3) transaction-fee revenue from appraisal-driven trade-in purchases (including non-buyers), (4) service, parts, and maintenance fees from on-site departments, and (5) extended warranty and ancillary product attach. Go-to-market combines physical showroom conversion with online browsing, SEO-optimized location pages, blog content marketing, event sponsorships, and reputation management via Google Reviews. Distribution is regional (Mid-South TN and Northern AL) with a fifth site in Antioch, TN coming online in mid-2026. The company is privately held with no disclosed institutional investors or external funding rounds.

Name

City Auto

Legal name

City Auto Sales LLC

Website

https://cityauto.com

Company type

Private

Founded year

1986

Operating status

Operating

Headcount range

101–250 employees

Short description

City Auto Sales LLC is an independent used car dealership group operating four retail showrooms across Tennessee and Alabama, selling nearly 1,000 vehicles across 35+ brands through a no-haggle pricing model with franchised Mitsubishi sales and commercial fleet services.

Ownership category

akta.pro rank

Product category

Used Car Dealership

NAICS

Used Car Dealers (441120), Automobile Dealers (4411)

SIC

Retail-Auto Dealers & Gasoline Stations (5500)

akta.pro primary industry

Auto & Vehicle Loan Brokerage (FSAEAEAK)

akta.pro secondary industry

New & Used Auto Purchase Loans (FSAKADAA)

Keywords

• Used car dealership
• Pre-owned vehicles
• Auto financing
• Vehicle service center
• Commercial fleet sales

Headquarters

HQ city

Tennessee

HQ country

United States

HQ region

North America

Offices5 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Supply Chain, Personnel, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Vehicle Sales: One-time transaction revenue from selling new and pre-owned vehicles to individual consumers and commercial buyers. Company operates as independent used car dealer with nearly 1,000 vehicles in inventory across 35+ brands.
2. Trade-In Purchases: Company purchases vehicles from customers even if they don't buy from City Auto, providing cash offers or trade-in value toward vehicle purchases.
3. Service & Maintenance: Service departments at Memphis and Murfreesboro locations offer maintenance, repairs, and parts sales. Services include oil changes, brake pad replacement, computer diagnostics, and air filter replacement.
4. Financing Services: Finance departments work with top lenders and banks to provide auto loans. Revenue generated through financing arrangements and lender partnerships.
5. Commercial Fleet Sales: Dedicated commercial department for business vehicle procurement, offering customized commercial vehicles including box trucks, cargo vans, work trucks, and passenger vans. Partners with Ally Financial for commercial credit lines.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels5 records

Core offering

City Auto is an independent used-car dealership group operating multiple showroom locations across Tennessee and Alabama. The core offering is the retail sale of pre-owned vehicles — approximately 1,000 units across 35+ brands, with 500+ priced under $25,000 — supplemented by new Mitsubishi franchise sales, a City Auto Certified pre-owned program, an in-house service center, a finance center, vehicle trade-in purchases, and a dedicated commercial fleet division (City Auto Commercial).

Product overview

City Auto is an independent used car dealership operating as a single unified brand with multiple location-specific services. The core offering is pre-owned vehicle sales through City Auto Used Vehicles (with over 35 brands, ~1,000 vehicles in inventory, and 500+ vehicles under $25,000), supplemented by new Mitsubishi franchise sales at the Murfreesboro location. The product portfolio includes City Auto Certified (30-day warranty inspection program), City Auto Commercial (fleet/commercial vehicle solutions), City Auto Finance Center (financing with Ally and national lenders), Value Your Trade/Sell Your Vehicle (trade-in appraisal services), City Auto Service Center (maintenance/repairs), and a 5-Day/300-Mile Exchange Policy customer guarantee. All locations operate under a no-haggle pricing model.

Differentiator

Problem solved

Functional benefit

Brands

• City Auto Certified: Certified pre-owned vehicle program offering a 30-day express warranty on all inspected vehicles.
• City Auto Commercial

Products and services

• Pre-Owned Vehicles

Quantifiable outcome

• Nearly 500,000 vehicles sold over three decades
• +2 more outcomes

Named customers2 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Two partnerships are on record, tiered flagship and minor.

• Mitsubishi Motors North AmericaflagshipChannel Partner/ Reseller/ Distributor · 1 July 2026Partnership to open first-ever Mitsubishi Gallery dealership in Antioch, Tennessee. Grand opening scheduled for July 2026 following groundbreaking in August 2025. Gallery will serve as showcase and brand discovery center where visitors can learn about Mitsubishi vehicles and initiate purchase process online through ClickShop platform, with final sales completed at City Auto's main dealership 20 minutes away. Part of Mitsubishi's 'Momentum 2030' U.S. business plan focusing on electrification, product expansion, and network growth.
• Ed Murphey Classic / Murphey Track ClubminorOthersCity Auto Group sponsors the 9th Annual Ed Murphey Classic, a premier track and field event in Memphis. Proceeds from the event benefit the Murphey Track Club, which empowers Memphis youth through track and field. City Auto supports youth athletics and community engagement through this sponsorship.

Scale indicators7 records

Recent moves9 records

Expansion highlights6 records

Direct peers

• CarMax: Largest U.S. used car retailer, operating a no-haggle pricing model across hundreds of stores. CarMax is the closest direct comparable to City Auto's transparent pricing and used-car focus, though at significantly greater scale.
• Group 1 Automotive: U.S. automotive retailer with 200+ new and used vehicle dealerships across the U.S. and U.K. Similar multi-brand, multi-location structure with combined franchise, used, and F&I operations analogous to City Auto's model.
• Sonic Automotive: Multi-brand automotive retailer combining franchised new car dealerships with the EchoPark used car platform. Closely comparable to City Auto's hybrid new-and-used model, with similar mix of franchise and independent used operations.
• Vroom: Online used car marketplace offering home delivery and financing. Directly competes with City Auto for used vehicle buyers but with an asset-light e-commerce model that challenges brick-and-mortar dealer economics.
• Carvana: Pure-play online used car retailer offering no-haggle pricing, financing, and home delivery. Direct competitor in used vehicle sales but digital-first with no physical showrooms, pressuring traditional dealers like City Auto.
• Asbury Automotive Group: Regional U.S. automotive retailer with new and used vehicle dealerships, including the Clicklane digital platform. Comparable in scale and structure as a multi-location dealer group with both franchise and used-car operations.
• DriveTime: Used car dealer specializing in subprime auto financing, with integrated finance operations similar to City Auto's multi-lender finance center. Comparable as a finance-anchored used car retailer but skewed toward non-prime credit buyers.

Broad incumbents

• Lithia Motors: Largest U.S. auto retailer with hundreds of franchise stores plus Driveway online used car platform. Operates the same multi-brand new/used dealership model at massive scale, including a sizable used vehicle digital channel that competes with City Auto's regional footprint.
• AutoNation: One of the largest U.S. automotive dealers with 200+ franchise stores. Same multi-brand franchise and used vehicle model as City Auto but at much greater national scale and brand breadth.
• Penske Automotive Group: Global premium automotive retailer with U.S., U.K., and European franchise dealerships plus Penske Transportation Solutions. Comparable as a large multi-brand dealer group but skews toward luxury and premium brands.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/cityauto
• Facebookfacebook.com/cityautomemphis
• LinkedInlinkedin.com/company/city-auto

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about City Auto