The nation’s auto retailers are proving once again that this is still a golden era for dealership profitability and consolidation. The newly released Q3 2025 Haig Report® from Haig Partners paints a picture of a market that has rebalanced after the post-pandemic frenzy, but remains extraordinarily strong by historical standards. Profits have risen for the second consecutive quarter, buy-sell activity has rebounded, and valuations continue to hover near record highs. For dealers weighing whether to grow, hold, or exit in 2026, the message is clear: conditions remain highly favorable.
Alan Haig, President and Founder of Haig Partners, notes that sentiment on the ground has shifted decisively. Most dealers he and his team speak with are once again optimistic about the future, even with ongoing macroeconomic noise such as tariffs and mixed performance at certain OEMs. Average profits remain more than twice pre-pandemic levels, and both buyers and sellers are “leaning in” again. Confidence has returned to the market, and sellers are still able to achieve values close to peak pricing for high-performing stores.
Profits Remain Near Historic Highs
One of the headline findings from the Q3 2025 Haig Report® is that dealership profitability remains exceptionally strong. Average pre-tax profits per public dealership climbed 13.0% in Q3 2025 versus Q3 2024. This growth was driven largely by:
- Fixed Operations Strength – Service and parts operations grew by 8.3%, underscoring the importance of robust aftersales performance in a more normalized new-vehicle environment.
- Resilient F&I Income – Finance and insurance continue to be a key profit pillar, with dealers capitalizing on structured products, protection plans, and disciplined F&I processes.
Even as new-vehicle margins have normalized from the extraordinary peaks seen during the height of inventory shortages, dealers have successfully adapted their business models. Strong service bays, well-run F&I departments, and more rational inventory levels have combined to lock in a structurally higher earnings baseline than the industry enjoyed before 2020.
Blue Sky Values Edge Higher
Despite concerns that rising interest rates, evolving EV policies, and tariff uncertainty might weigh down valuations, blue sky values have actually increased. According to the Q3 2025 Haig Report®:
- The average blue sky value per dealership rose 7.3% since year-end 2024.
- This uplift is directly linked to higher profits and sustained buyer demand.
Buyers are still willing to pay premium multiples for well-run, strategically located stores, particularly in growth markets and for franchises with strong product pipelines. While valuations may not be climbing in the sudden, explosive fashion seen in the immediate post-pandemic years, they remain near the upper end of their historical range—offering sellers a compelling opportunity to capture the value of their life’s work.
Buy-Sell Activity Rebounds Sharply
After a relatively slow start to 2025, the third quarter saw a robust rebound in buy-sell activity:
- 149 dealerships changed hands in Q3 2025, matching the same high level of sales seen in Q3 2024.
This resurgence suggests that earlier hesitation related to the U.S. election, tariffs, and uncertainty around economic growth has faded. Both buyers and sellers have recalibrated expectations and are transacting in what Haig Partners characterizes as a more rational, but still very attractive, market.
On the buyer side, both public and private groups are active:
- Publicly traded groups executed large-scale, headline-grabbing deals—most notably Asbury’s $1.3 billion acquisition of the Herb Chambers Companies, one of the largest transactions of the year.
- Private groups focused on strategic tuck-in acquisitions, regional expansion, and targeted platform deals that align with their long-term growth plans.
For sellers, this active buyer pool means real competition for desirable stores—and in many cases, multiple offers and strong negotiations that can drive final valuations higher.
Franchise Standouts and Value Opportunities
The Q3 2025 Haig Report® also dives into franchise-level dynamics, highlighting both top performers and emerging value plays.
- Lexus remains a star performer, continuing to command top-tier multiples in the 9.0x–10.0x range. The combination of robust demand, strong brand equity, and attractive profitability keeps Lexus at the upper end of the valuation spectrum.
- Porsche, while still a highly desirable franchise, has seen its multiples soften modestly due to product cadence issues, margin pressures, and facility-related challenges. These factors have led some buyers to approach Porsche opportunities more cautiously or selectively.
At the same time, value-oriented buyers are returning to the market. During the pandemic years, nearly all franchises performed exceptionally well, leaving little room for “bargain” acquisitions. In 2025, performance divergence has become more pronounced:
- Brands such as CDJR, Nissan, and select others are being divested by groups frustrated with inconsistent performance or OEM challenges.
- These stores are now trading at lower prices than in recent years, reflecting reduced profitability but also offering upside potential for operators who see room to improve metrics and local market share.
For disciplined buyers, this environment presents a mix of high-multiple premium franchises and undervalued turnaround opportunities, allowing acquisition strategies to be tailored to risk appetite and operational strengths.
Ford Franchise Feature: Short-Term Pressure, Long-Term Upside
A special focus of the Q3 2025 Haig Report® is Ford, a brand navigating a complex but promising moment in its history.
Ford dealers have faced short-term headwinds, including:
- Quality issues and recalls that have weighed on consumer perception and warranty costs.
- A product gap in certain segments.
- Past missteps in EV strategy, leading to inventory and pricing challenges in some markets.
Yet, Haig Partners emphasizes that Ford’s core fundamentals remain appealing, especially for patient, strategic investors. The brand’s business model is anchored by:
- The F-Series, one of the most successful and profitable truck lines in the world.
- The expanding Ford Pro commercial division, which serves fleet, work truck, and commercial clients and generates stable, recurring service volume and parts demand.
John Murphy, Managing Director at Haig Partners, notes that buyers who understand Ford’s direction see today’s valuations as a compelling entry point. With new generations of high-volume trucks scheduled to roll out in 2027–2028, the current period may represent a classic “buy the dip” phase for investors with a long-term view.
A Market Rebalanced – but Still Very Strong
The broader economic backdrop remains noisy, but not negative. Factors such as tariffs, wage pressures, and an uneven labor market are creating headwinds in certain regions and segments. However, key indicators are supportive:
- The Atlanta Fed’s Q3 GDP estimate of 3.9% growth suggests healthier momentum than the weak conditions seen in Q1 2025.
- Unemployment remains relatively low, supporting consumer demand.
- Modest interest rate cuts are easing some of the financial burden on both buyers and businesses.
Within this context, dealership fundamentals remain solid. Dealers are increasingly confident that the post-pandemic “new normal” of higher profitability is sustainable, thanks to:
- Strong, recurring fixed operations revenue.
- Elevated F&I performance across many groups.
- A more rational inventory environment, where overstocking and excessive discounting are less prevalent than in the pre-2020 era.
- Policy changes, including the revocation of CARB waivers, which have enabled dealers in certain markets to offer a product mix better aligned with customer preferences.
The Buy-Sell Outlook: Healthy, Rational, and Strategy-Driven
Looking ahead, Haig Partners expects M&A volumes to remain robust, though more grounded in strategy than speculation.
- For 2025, the firm forecasts approximately 450 rooftops changing hands, with potential upside in 2026.
- The pipeline for future deals is strengthening as inbound calls from potential sellers have increased in Q4 2025, suggesting a higher supply of dealerships coming to market in the first half of 2026.
Drivers of this healthy outlook include:
- Active private capital, including family offices, regional groups, and well-capitalized dealer organizations seeking growth.
- Easing OEM restrictions, which are making it somewhat easier to complete transfers and structure multi-store deals.
- Valuation support from policy shifts and regulatory clarity, particularly where the removal of CARB waivers has boosted profitability and marketability.
As Alan Haig puts it, the market has shifted from a speculative, fear-of-missing-out environment to a “rational market” where both buyers and sellers can win. The next wave of transactions will be driven by strategic fits—brand mix, geography, scale, and synergies—rather than by emotion or speculation alone.
Haig Partners’ Role: Maximizing Value in a High-Stakes Market
Haig Partners continues to play a central role in many of the industry’s most important transactions. In Q3 2025 alone, the firm:
- Advised on the sale of thirteen dealerships, including the second-largest dealership group sale of the year.
- Launched marketing for dozens of additional stores.
- Maintained a robust pipeline that positions the firm to set further valuation records in 2026.
The team has a track record of helping clients achieve record-setting blue sky values for major franchises, including BMW, Toyota, Honda, Kia, CDJR, and Mazda. This performance underscores an important point for today’s owners: with profits and valuations near all-time highs, understanding the true market value of a dealership has never been more critical.
Many dealers are receiving unsolicited offers or direct outreach from potential buyers. While these offers can be flattering, owners who negotiate alone risk leaving substantial value on the table. A sophisticated advisor can:
- Benchmark offers against real, current market data.
- Generate competitive tension by engaging multiple serious buyers.
- Structure deals that address tax considerations, real estate, management continuity, and family goals.
For families considering a sale—whether a full exit or a strategic divestiture of certain brands or locations—Haig Partners positions itself as the partner that ensures their life’s work is rewarded at full market value.
Looking Ahead to 2026: Growth, Strategy, and the Haig Partners Maximizing Value Conference
For dealers planning to expand in 2026, Haig Partners is not just a transaction advisor, but also a source of strategic insight and education. At NADA 2026 in Las Vegas, the firm will host the Haig Partners Maximizing Value Conference, focused on the theme:
What to Buy and How to Grow
This conference is aimed at dealers who want to capitalize on the current environment—whether by scaling their platforms, entering new markets, or sharpening their investment thesis around specific franchises. The agenda features a lineup of respected industry voices and practical, dealer-focused content, including:
- What NADA Is Doing to Help Dealers – presented by Mike Stanton, NADA President & CEO.
- Dealership Buy-Sell Update – presented by Alan Haig, President and Founder of Haig Partners, offering a fresh view of valuations, volumes, and buyer behavior.
- What Franchises to Buy in 2026 – presented by John Murphy, Managing Director at Haig Partners, outlining where the best opportunities lie in the next cycle.
- NADA 20 Group Panel: Best Ideas to Improve Profits – moderated by Yossi Levi, Founder and CEO of Car Dealership Guy, sharing real-world best practices from 20 Groups.
- Investment Thesis for Acquiring Kia Dealerships – presented by Greg Grulikowski, Executive Director, Retail Development Representation, Kia America.
- How to Build a #1 Volume Dealership in the U.S. – featuring Rita Case, 2024 Time Dealer of the Year and President & CEO of Rick Case Automotive Group, home of the #1 Honda and #1 VW dealerships in the world by volume with the largest facilities.
- Investment Thesis for Acquiring Honda Dealerships – presented by Daryl Bazemore, Assistant Vice President, Auto Sales Strategy, American Honda Motor Co., Inc.
For dealers weighing their next move—whether growth, restructuring, or exit—this conference is designed to provide actionable strategies grounded in real-world experience and data.
The Bottom Line for Dealers
The Q3 2025 Haig Report® confirms what many leading dealers already feel: while the wild extremes of the pandemic-era market have faded, this remains an extraordinarily strong time for retail automotive. Profits are still roughly double what they were before 2020, blue sky values are near all-time highs, and buyers are active and well-capitalized.
For owners, the decision now is less about whether the market is good—it clearly is—and more about how best to use this window:
- Grow by acquiring new franchises or markets while rational valuations and value opportunities coexist.
- Optimize by focusing on fixed operations, F&I excellence, and strategic brand mix.
- Exit or partially divest at a moment when buyers are willing to pay near-peak multiples for strong, well-run stores.
In every scenario, understanding true market value and approaching decisions with a strategic mindset is essential. Haig Partners’ Q3 2025 report underscores that this is not a market in retreat, but a rebalanced, rational arena rich with opportunity for dealers who are ready to act.
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