Auto Dealership Buy-Sell Market Holds Strong in 2025 Despite Profit Normalization
Event summary
- 616 dealerships were bought or sold in 2025, 50% higher than the annual average from 2015 to 2019.
- Average blue sky value of a publicly owned dealership increased 2.2% to $19.0 million in 2025.
- Average adjusted pre-tax income for publicly owned dealerships was $4.1 million, slightly higher than in 2024.
- U.S. new vehicle sales totaled 16.2 million units in 2025, despite affordability challenges and tariff pressures.
The big picture
The U.S. auto retail industry remains attractive for long-term investors, with dealership buy-sell activity and valuations holding strong despite normalized profits. The market's resilience is evident in the 616 dealership transactions in 2025, driven by large buyers focusing on high-volume stores and smaller buyers acquiring distressed franchises. The industry's ability to navigate economic challenges, including affordability pressures and tariff disruptions, underscores its stability and continued appeal to investors.
What we're watching
- Regulatory Risks
- Potential renegotiation of the USMCA could impact vehicle production costs and dealership profitability.
- Consumer Affordability
- Ongoing pressure on vehicle affordability, particularly in entry-level segments, may affect new vehicle sales.
- Industry Consolidation
- The pace of consolidation across the dealership landscape will influence buy-sell market dynamics in 2026.