Classic Honda on the move to Loop 250 and Thomason

Classic Honda of Midland is building a new dealership on West Loop 250 south of Thomason. (Courtesy Classic Honda)

Classic Honda of Midland is on the move and, like the Pied Piper of folklore, expects new businesses to follow.

"The great thing about auto dealerships is not only do they bring tax revenue, they also drive big traffic," said Joey Gabarda, owner-operator of the dealership. "Usually, when you place a dealership, other businesses will follow."

Gabarda is constructing a new $25 million dealership on a seven-acre tract at 400 S. Loop 250 West, on the west side of Loop 250 south of Thomason Drive. Dirt work is ongoing and expected to take some time as trenches for new gas, electric, water and sewer lines are constructed. He said he expects the dealership to be in its new home in about 15 months.

The dealership is currently at 3705 W. Wall Street and Gabarda explained he is making the move in large part because there are apparently no plans to redevelop that stretch of Wall Street/Business 20.

"It didn't make sense for me to redevelop this" at that price, he said. Too, he said, he wanted to put that investment into an area where he could help foster development.

The new location, which will be near the new Legacy High School, is part of the last piece of Loop 250 to be developed, he said. Where H-E-B and surrounding businesses sit "will be the heart of the Permian Basin," he predicted.

While the dealership will be about the same size, Gabarda expects sales revenue and employee count will double or triple in the new location.

"Once we're done, it will hold 563 cars, almost double our current location," he said.

The design is Honda's new Blue Stage design and Garbarda said his will be one of the first Honda dealerships to utilize the design. It will feature a two-story, energy-efficient business with updated, digital technology and a state-of-the-art service department that is climate controlled. It will also feature a state-of-the-art car wash for Classic customers.

"It will be a big service shop, almost as big as this one," Gabarda said.

The new location will place under one roof five businesses: New vehicles, pre-owned vehicles, parts, service and the business department. Gabarda said he could have purchased land on the east side of Loop 250 for a lower price, but he would have lost traffic from Odessa. He estimated about half of his clients come from Odessa.

Gabarda is proud of both the fact he is a truly family-owned business and the dealership's support of numerous community initiatives, from schools to first responders to families in need.

All dealerships continue to deal with post-COVID issues, including high interest rates, high supplies of vehicles and low demand. As a result, he said business costs are significantly higher.

Gabarda predicts the industry will cycle out of these issues in about three-and-a-half years.

But, he said, "in reality, a good dealer, a well-run dealership, will figure its way through anything. This area has lived through negative $35 oil, the Arab embargo. A good dealer knows how to navigate their way."