Circuit City to Experiment With Selling Used Cars

Circuit City Stores Inc. wants to try its hand at selling used cars.

“It’s a big-ticket, durable-good retail business just like consumer electronics and appliance retailing,” said Ann Collier, a spokeswoman for the nation’s largest electronics and appliance retailer with $3.27 billion in sales last year.

The company plans to open a test lot with about 700 cars later this year in Richmond. The lot won’t be located near a Circuit City store for one-stop shopping, Collier said.

In any case, Circuit City’s possible entry into the used-car business could add legitimacy to an industry long associated with sleazy, slick salesmen in polyester suits.

“Historically, it’s been the little entrepreneur-type operator who opened up lots,” said Michael Luckey, president of an auto industry consulting firm in Westwood, N.J., bearing his name. “Quite frankly, there’s a lot of shady dealings going on there.”

While there isn’t any official name for the car division yet, Circuit City employees have dubbed it “Sharp’s Auto” after Richard Sharp, president and chief executive. The test is the brainchild of Sharp and Austin Ligon, senior vice president of planning.