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Hey everyone,
Given that today's Breakdown newsletter digs into buy-sell happenings, it feels only right to plug our Dealership Buy-Sell Tracker.
As always, send your latest deal(s) to this email & we'll do what we can to get it out there.
— CDG
Lately, it feels like it's raining buy-sells.
Toyota stores remain market darlings, everyone’s managing their portfolios, and there’s still consolidation, consolidation, consolidation.
But other transaction types are snagging headlines, too, including several first-ever franchise owners.
Plus, while luxury sales remain a big draw, some buyers are looking for more economical options.
Which brings us to today: Here are three transaction realities worth tracking in the mergers and acquisitions space as of August 2026.
First-time franchise dealers are gobbling up dealerships, consolidator era or not.
Frank O'Donnell, managing partner for Biltmore Automotive Services, told me their firm closed nine deals this year, and six were franchise newcomers.
"The market is starting to open up, especially for smaller rooftops, which fit our profile," O'Donnell said.
Frank O’Donnell
Biltmore
Automotive Services
For the unfamiliar: First-timers are usually steered toward tier two and tier three markets, O’Donnell said, because major metros are often out of reach.
Plus, manufacturers prefer new owners cut their teeth somewhere manageable.
His advice for hungry newbies, especially those coming from management-level roles in other dealerships:
Have all paperwork, especially your current dealership's performance metrics, in order.
Understand that OEMs want to see how a candidate performs against their guidelines before approving a new store, O’Donnell said.
And remember that customer satisfaction at your existing dealership matters most, with O'Donnell saying it's one of the top KPIs manufacturers weigh when evaluating a first-time buyer.
Jeff VanderWal, founder of used-car operation ClearShift in Colorado, actually entered his franchised dealer rookie season about six weeks ago with the purchase of ClearShift Freedom Ford in Gunnison, Utah.
Here’s what he told me in June:
"It takes a long time to get a franchise store," VanderWal said. "It's harder than most people think…"
Jeff VanderWal
ClearShift
Knowing that, here’s what he suggests:
Build an admin team for manufacturer paperwork, lender requirements, licensing, taxes, and insurance.
Treat every "no" as a not-yet, because having experience with used cars doesn't mean an automatic yes, but it also doesn't mean it's gonna happen.
Prioritize the OEM relationship: "The best thing you could do as a dealer group is cast your own vision and go directly to the manufacturer and show them who you are," VanderWal said.
More than any of those, though, he said to just be human.
Take a step back from the sales role, find out what the customer wants to accomplish, and figure out how to help them get there.
“Most sales individuals are so focused on getting a sale that they actually don’t care as much about the buyer as they do selling a car.”
Backing his methods: VanderWal said ClearShift Freedom Ford had record-breaking sales in July, doubling the store’s best new-car sales month.
In fact, they sold 240% of their sales objective to lead the Western Region at Ford.
“If you can find yourself genuinely serving the needs of the customer and helping them be successful in the car purchase, you will find yourself repeat buyers who trust you, not fresh ups that you're trying to push into a car," VanderWal said.
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It might not be an unfolding trend, but luxury stores are selling, too.
Recently, it feels like every other deal we see includes a luxury rooftop.
Hendrick Automotive Group's first Ferrari dealership acquisition (plus a slew of other luxury brands) from Paramount Automotive Group is one example.
Plus, Atlanta-based advisory firm The Presidio Group has closed at least seven deals involving luxury stores this year, including the latest IndiGo acquisition in San Francisco.
Not a trend, but worth noting: George Karolis, president of Presidio, told me it's not necessarily a luxury trend unfolding right now, but rather just a busy season.
"I wouldn't say there's any material difference in luxury stores on the market versus any other brand," Karolis said. "It's a similar cadence."
George Karolis
The Presidio Group
What Presidio is seeing, though, is “more of a focus from the sophisticated buyers wanting larger luxury stores and good geographies," he said. "When they come up, they get executed quicker because they're in demand."
If you’re looking: When asked if luxury stores were harder to acquire, Karolis said fundamentals still matter more than anything in getting approved for, and successfully running, luxury stores.
His advice to consider:
Keep the existing team, because those relationships with the community and customers can't be replicated overnight.
Experience with a luxury manufacturer helps, he said, but fresh faces can break in. It just may take more effort to gain the OEM’s approval.
And don’t forget, a typical baseline still applies when seeking the OEM’s green light: Meaning, having enough capital, a clean track record, and real operating experience all count toward getting approved.
When talking luxury, of course, like any other category, there are tiers.
Taseer Badar, CEO of his Badar Family Office, just stepped into the ultra-luxury market with the acquisition of McLaren Charlotte and Rolls-Royce Motor Cars Charlotte in North Carolina.
"It's about people,” Badar told me. “If you buy the dealership, yes, it has beautiful cars, metal, concrete, beautiful building, nice coffee bar...very high end. But without the people, it's just a place of concrete.”
Taseer Badar
Badar Family Office/
ZT Automotive
The Badar Family Office recently formed ZT Automotive Collection, an ultra-luxury division of the group’s ZT Automotive portfolio, around the latest acquisitions.
Badar said the appeal goes beyond blue sky:
Ultra-luxury doesn't move with the broader economy. "It's a nice hedge to have," Badar said.
The buyer pool is thin, which cuts both ways: less competition for sellers, but buyers need real relationship-building chops with a smaller, wealthier customer base.
Because of this, it’s worth looking for succession-driven sellers.
"A lot of the best stores I have are families that owned it that don't want to do it anymore," Badar said.
Dealers are purposely scaling with the brands they know best.
Mike Sims, president of Texas-based advisory firm Pinnacle Mergers & Acquisitions, said he's noticed dealers, especially larger regional groups, increasingly aligning their resources around specific brands.
"More and more are focusing on kind of their core brands... because of all the programs, the nuances, etc., are so hard to manage and maneuver effectively," Sims said.
Mike Sims
Pinnacle Mergers & Acquisitions
Here’s how dealers are doing so:
Buying more of the same brand for deeper OEM leverage and a consistent playbook.
Putting one manager on each brand, rather than, say, by region.
And getting an OEM liaison in place to stay ahead of program changes.
Worth remembering: Sims said not all the transactions these days are headline-grabbing.
In fact, he said private dealers "are still looking for opportunities where they can buy a store and improve performance," calling that strategy "the backbone of the buy-sell industry."
No matter what you’re buying or selling, though, Sims shared that some things never go out of style when it comes to being a smooth operator.
"The most important thing in the buy-sell business is to do what you say you're going to do, when you say you're going to do it," Sims said.
In other words: Treat a signed letter of intent like a done deal. Good follow-through earns the next call.
And keep the lawyers moving, he said, because dealers who close contracts fast, instead of dragging negotiations beyond 60 to 90 days, win more deals.
Bottom line: Buy-sell trends in auto retail come and go, and every brand takes turns starring in the show.
But across today’s stories, one thread remains strong: Relationships fuel opportunities, and they close deals.
That’s true whether you’re a first-timer trying to prove yourself to the OEM, a seasoned buyer looking to add or grow luxury holdings, or a group doubling down on the brands the group knows best.
No matter the case… Do the work, make the connections, and the rest will likely fall into place.
