Private buyers are the biggest driver for dealership acquisitions this year. That number increased 34% in the first nine months of 2015 compared to the same period in 2014. Growth is leveling off from the boom in major acquisitions that took place in 2014, but remains a very strong market for buying and selling. Luxury franchises continue to bring the strongest interest from buyers. Honda, Toyota, and Subaru also remain attractive to most buyers, along with an increase in interest for domestic brands.
Biggest Challenge is Erosion of Gross Profits in New and Used Vehicle Sales:
Decline driven by OEM stair stepping programs, turn and earn policies, TrueCar, and ease consumers have in comparing prices on mobile devices.
Fixed Operations and Finance & Insurance Departments Seeing Higher Profits:
Higher profits from fixed and little expense against revenue in F&I helps dealer profits.
Used Car Market Will See Growing Supply from Strong New Vehicles Sales in Recent Years:
Should help boost dealer profits since some franchisees seeing more profit in used cars than new cars.