Conditions Staying Strong for Buying and Selling Dealerships

Alan Haig
Haig Part­ners

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.

Here’s The Haig Report for third quar­ter 2015

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.



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