IN the same way Evansville is a hub for health care, retail shopping, dining, and entertainment, it also is a regional capital for automotive sales. It’s not just about the city’s centralized spot on the map: More than 100 lots offer the latest models, a wide range of makes, used cars, and luxury rides. Many bolstering body shops and repair services. Laying the groundwork for the local industry’s strength are award-winning auto sales leaders who have embraced innovation and weathered economic downturns to keep auto sales strong.
Personal auto usage often is necessary — even required — to get around this corner of the Midwest. Statistics from Data USA show that the average vehicle ownership in Evansville matched the national average of two autos per household in 2023. Of the little more than 51,000 local households, around 45,000 — 88.9 percent — relied on a personal vehicle for their daily commute. Less than 5 percent used a mix of bicycles, taxis, motorcycles, walking, and other modes of transportation. Although the Metropolitan Evansville Transit System is the most robust such network in the area, public transportation remains scarce in the Tri-State, driving up the demand for automobile ownership throughout the region. Local dealerships have built their businesses off that critical need.
Evansville is full of experienced automotive dealers, such as the D-Patrick family of dealerships. Led by brothers-in-law Mike O’Daniel and Ray Farabaugh, the third-generation family business dates to 1934 and employs a workforce of about 500 in a footprint mostly centered in Evansville and Boonville, Indiana. D-Patrick sells about 9,000 vehicles annually from 10 area dealerships.
Within Evansville are pockets of automobile sales hubs. At the Division Street auto plaza along Lloyd Expressway from Green River to Stockwell roads, buyers can hop from lot to lot and shop for Chevrolet at Kenny Kent, Hyundai at Hyundai of Evansville, Kia and Mazda at Lou Fusz, and Nissan, Honda, Volkswagen, Porsche, Audi, BMW, Mercedes-Benz, and more from D-Patrick. Another D-Patrick location sells Lincoln and Ford near the busy U.S. 41-Lloyd Expressway interchange.
Across Green River Road to the east, there’s more. Just off East Indiana Street are Kenny Kent’s Lexus and Toyota dealerships near Expressway’s locations selling Dodge, Chrysler, Jeep, RAM, and Mitsubishi vehicles. Further east near the Warrick County line is the Romain Auto Group’s home base for its Subaru, Buick, GMC, and Cadillac dealerships, as well as Town and Country’s Ford location. Lux Motors on Green River Road offers used luxury imported and domestic vehicles including Rolls-Royce and Land Rover.
D-Patrick is among the oldest auto companies in the region, followed by Kenny Kent, which originated in 1945 as a Chevrolet dealership, and the Romain Automotive Group — falling under the umbrella of United Companies — which dates to 1964.
Interspersed around all are the companies’ respective body shops, service centers, and financing departments. Smaller dealerships also dot regional sales options, swelling the number of lots to more than 100 in and near Evansville.
Offering thousands of vehicles in an easily accessible city has made Evansville a prime choice for auto shoppers. “We have a very big area we draw from,” says David Cates, general sales manager of Lou Fusz Kia Evansville.
DRIVING SALES WITH PRINGS AND PERSONAL RELATIONSHIPS
While Evansville’s location helps, local automotive dealers say there’s no substitute for trust and knowing who you’re dealing with, and that’s what they provide to those looking to buy or lease a vehicle.
Staying competitive in the industry, local dealers say, requires a solid team. D-Patrick “doesn’t bring just anyone on board” — O’Daniel describes the company’s hiring as “highly selective,” and once someone is on the team, D-Patrick is committed to ongoing education and improvement in the craft.
“You have to have a commitment to personal growth of employees, (and) help your employees understand that customer satisfaction and being fair to them is the ultimate priority,” says O’Daniel, who got his start by picking up trash at age 5 at his father’s dealership. O’Daniel joined the company’s payroll in 1987.
This approach to sales practice extends across the Ohio River, too. Kate Faupel Grealish is the owner of her namesake Ford dealership on Henderson, Kentucky’s U.S. 41 strip as well as her father Ron Faupel’s nearby Henderson Chevrolet GMC dealership. Wearing wildly patterned pants to attract attention, Faupel has encouraged Evansville-area car shoppers to “cross that money-saving bridge” to his dealership in the Bluegrass State for nearly 25 years.
Grealish says having success in the industry always starts with people.
“Your workforce is everything to a dealership,” Grealish says. “When you have good people, you have good service, and customers come back. You’ve got great people who build a great reputation for you with customers and drive retention.”
The region’s strong reputation in the automotive industry has attracted dealers from outside the Tri-State market, such as St. Louis, Missouri-based Lou Fusz Automotive Network, which purchased Evansville’s Kia dealership from Doug and Anne Duell in August 2022.
“Lou Fusz Motors Company expanded into the Evansville market in 2022 to take advantage of the area’s growth potential,” Cates says. “Evansville offers a wonderful combination of an expanding market with loyal customers and a small-town feel, making it an ideal opportunity for a family business like ours. … We have been welcomed warmly by the community, and the region aligns well with our values and business model.”
Expansion into the Vincennes and Terre Haute, Indiana, markets followed in 2024. The company employs approximately 113 people at the Evansville dealership and about 1,200 across all 19 locations.
Although a new name in Evansville, the third-generation family company has a long reputation in the Gateway City, expanding to more than one dozen dealerships in and around St. Louis since the company’s founding in 1952.
FAMILY AND PHILANTHROPY
Like O’Daniel, Farabaugh, and Grealish, Cates attributes his company’s success to its family-based core values: “Treating everyone with respect, doing the right thing for our customers, and building lasting relationships to create lifelong customers,” he says.
“Meeting customers where they are in the buying process is crucial to building strong relationships and ensuring customer satisfaction,” he adds.
Evansville-area automotive dealers have used their success to give back big dollars to the community. Since the 1980s, D-Patrick has contributed millions to local organizations and causes, and that community involvement was a contributing factor in Farabaugh being named TIME Dealer of the Year in January from a field of 49 nominees from across the U.S. Romain sponsored Harrison High School’s football stadium. Faupel Automotive employees serve on nonprofit boards and donate volunteer hours to community projects. In the St. Louis area, Lou Fusz Automotive has become known for its Lou Fusz Athletics program, which launched in 1992 with the mission to positively impact youth. Those efforts came with the company to Evansville, where it sponsors the North High School soccer fields for both boys’ and girls’ teams and has built the Huskies’ ticket office, installed new goals, and provided new uniforms.
With vehicle and economic trends constantly evolving, automotive dealers have to keep their game sharp and adapt quickly. Several owners cite technology as the biggest driving force behind the industry’s changes, from what customers are looking for to how they choose to shop.
“It used to be that Saturdays were the biggest volume day. That’s not necessarily the case anymore,” Grealish says. “I really believe it’s because of the internet. No longer do you have to spend your whole day going to lots and test-driving 80 cars, seeing them and figuring out prices. People do research ahead of time, they’ve budgeted, maybe even done a credit app online. … They can come in Wednesday night, buy a car, and be out in an hour.”
Another change is the decline in the number of dealerships that are family-owned. Around the time that O’Daniel and Farabaugh joined the family business in the late 1980s, around 35,000 new car dealerships nationwide were owned by about 25,000 families. Today, there are between 16,000 and 17,000 dealerships, and their ownership is split between publicly held companies, private equity firms, and family-owned dealership groups. Only about 2,000 families are in the automobile business, with many families owning 7 to 10 dealerships.
Operating expenses play a large role.
“The capital requirement to have a dealership is extensive,” Farabaugh says. O’Daniel adds, “The price of cars has gone up, and dealers own every car on the lot. They borrow money for facilities, cars, equipment, working capital for payroll — all that has grown out of sight for a small family business.”
“A lot of dealers will tell you our second job is being the janitor. That’s very true,” Grealish says. “Of course we’ll have personnel issues like in running any business, but the facility is something not a lot of people think about. We have a ton of garage doors — if you have one door, multiply your problem by 15-20. Our big mechanic shop runs a lot of air for the hoses — if we have a reel break, we have to have it fixed. The lot itself, with that crazy weather in January, we had to get it salted but in a way that still protected the vehicles.”
TALKING SHOP
Buying a vehicle? Dealers offer some advice
Edited by Jodi Keen
“Buy and service locally, no matter where you live. Those folks will take the best care of you. … A local auto dealer in your town is the most personally invested in your satisfaction. If they’re offering sales, service, and a body shop, you have a big advantage.”
— Mike O’Daniel, Co-President, D-Patrick
“Consider leasing as an option. Leasing can provide lower monthly payments, reduced maintenance costs, and the flexibility to upgrade to a new vehicle every few years, which can be especially appealing given how quickly vehicle technology evolves.”
— David Cates, General Sales Manager, Lou Fusz Kia of Evansville
“Do your research, and figure out where you’d like to save yourself some time. It seems counterintuitive, but we don’t want people to have to be at the dealership more than they want to be. Also, if you have a trade-in, know what you need to do to get the most money for trade, like put on new tires or make sure it’s really clean.”
— Kate Faupel Grealish, President, Faupel Automotive
STICKER SHOCK?
Tariffs could push up prices of new vehicles
By John Martin
Looking to buy a vehicle? Trade wars between President Donald Trump’s administration and the rest of the world could cause some price jumps over the spring and summer.
Trump on March 27 announced 25 percent tariffs on foreign-made vehicles, effective April 3, as well as tariffs on parts including engines and transmissions which will be in place no later than May 3. This has led experts to consider buying automobiles soon rather than waiting for a better deal.
What kind of increase can shoppers expect? Perry Burnett, a University of Southern Indiana associate professor of economics, says he’s seen estimates of total possible impact range anywhere from $3,000 to $10,000 — no matter the car’s original price — with a key factor being the percentage of imported components in each vehicle.
Burnett noted a Honda Civic, for example, can have a U.S.-produced engine and transmission from Mexico, and several models are assembled in Canada. He points out that international free-trade agreements from the past are responsible for such diversification.
If more of a vehicle’s components are manufactured domestically, the impact of tariffs on buyers will be less, Burnett says.
When guessing how much a price could grow, “you can’t look at just the vehicle in terms of the brand,” he adds.
Burnett notes that Japan is a significant country in automotive production, so increased production from that nation could shield consumers from the impact of tariffs levied elsewhere. Supply chains in today’s world can adjust, he says.
Burnett says the best advice for consumers is to watch for the latest developments and pounce on a good deal if they see one.
JOIN THE PACK
Wolfe’s Auto Auctions celebrating 50 years
By John Martin
Those looking to buck the traditional way of automobile buying and discover some unique and vintage finds have a lively avenue — Wolfe’s Auto Auctions, which has weekly dealer-only sales as well as popular public events.
Founded by R. Tony Wolfe in Terre Haute, Indiana, the auction lot is celebrating its 50th anniversary this year. The business has been operated by five family generations, and it expanded to Evansville in 1987.
Wolfe’s main clientele are dealers, according to general manager Tony Wolfe, R. Tony Wolfe’s grandson, “Dealers who want to sell and buy cars do business at our locations. We are basically the remarketer for those cars … anyone who wants to liquidate inventory, we do that.”
But the public events — which started in 2020 and have been held twice a year in Evansville since 2022 — have been a hit with car fans. Those auctions happen on a Friday night and Saturday, with the Friday hours featuring a memorabilia auction as well as food and drinks. The cars are displayed Friday and auctioned Saturday. A pass for both days is $20.
The family business takes pride in its high-quality inventory, offering reliable vehicles with transparent information and competitive bidding. There’s quite a range — classic cars and later models are available, as well as glowy memorabilia to spruce up your garage or home.
The most expensive vehicle sold at Wolfe’s fall 2024 auction was a 1969 Chevrolet Camaro Z28, at $90,000, followed by a 1970 Dodge Challenger 440 Six Pack at $89,000.
“I love selling them all,” Wolfe says. “Every car has a history and story. Especially ones you’re trading from the older generation. I enjoy the inter- actions of all the people who come out and enjoy cars.”
Interested? Follow Wolfe’s Facebook page and website to keep up with inventory and upcoming events.
PREPARING FOR THE ROAD AHEAD
O’Daniel has observed economic downturns about once every 10 years, and his family’s company prepares by carefully investing in its future.
“We are reinvesting our profits rather than spending them,” he says regarding D-Patrick’s acquisition of dealerships in Lebanon and Crawfordsville, Indiana. “There’s no set pace to make acquisitions. When we have the operating funds and management available … that’s when we take an acquisition seriously.”
Grealish strengthens her company’s position in the industry by keeping a keen eye on internal improvement.
“We’re always looking to grow within. We’re never going to be satisfied with the status quo,” she says. “I want to do more and do better. ‘Could we change it and make it a little bit better?’ There’s always a bit more juice to be squeezed.”
The Evansville area’s automotive sales industry is well-equipped to weather ups and downs in the economy and whatever other changes come along over the next several years, dealers say, and that’s because of how local dealerships go about their business.
“We have so many family-owned dealerships that have an impact on the community,” Cates says. “We have a bunch of good people in our business here, and you can feel very good about who you’re dealing with at all the locations.”
