Buy-Sell Market Still Robust
2023 transaction number sets new record, though blue-sky values were off their pandemic-era peak.
The report says 680 franchises changed hands last year, up more than 5% year-over-year.
IMAGE: Pexels/RDNE Stock Project
The auto dealership transaction market set a new record last year, according to Kerrigan Advisors’ 2023 Blue Sky Report.
The buy-sell adviser said nearly 400 transactions took place over the year, up 6% year-over-year and surpassing the old peak in 2021.
The deals included the sale of Jim Koons Automotive Cos. to Asbury Automotive Group, which Kerrigan brokered and that it says is the third biggest transaction in auto retail history.
It said 680 franchises changed hands last year, up more than 5% year-over-year.
Kerrigan said many dealers want to scale for future security and that of those surveyed last year, almost half indicated they planned to pick up at least one store, though just 6% planned to sell.
Though blue-sky values were off their 2022 peak, they remained elevated, reported Kerrigan, which estimates they fell on average 8% year-over-year, well under an estimated 26% drop in industry earnings.
“This is because blue sky is driven by buyers’ expected future earnings, not past performance,” it said in its report.
Originally posted on Auto Dealer Today
More Industry
Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →