Q1 marks slowest quarter for dealership buy/sell activity in a decade

Dealership buy/sell activity practically vanished in Q1 2025. Just 68 rooftops changed hands, down 57% from last year and the slowest first quarter since 2015.

By the numbers: It's a dramatic reversal for what's usually a pretty active market.

• Transaction volume plummeted from 158 dealerships in Q1 2025 to just 68 this year.

• That makes it the weakest first quarter in a decade, according to the Q1 Haig Report.

• The slowdown is especially jarring after 2024, when 563 dealerships sold (the fourth-busiest year on record).

So what happened? That's the million-dollar question. When Haig Partners dug into the numbers, they found something puzzling. The firm's CEO Alan Haig says he gets calls "almost every day" from people wanting to buy dealerships—existing dealers looking to expand, wannabe dealers trying to break in, investors hunting for opportunities.

Yet somehow, hardly anyone was actually closing deals.

The possible culprit: When Haig's team asked around, many leading buyers and attorneys pointed to the presidential election as a potential factor. The thinking is that buyers wanted to see how regulatory winds might shift before writing eight-figure checks, while sellers figured their stores might be worth more under different policies.

Between the lines: Public companies went into hibernation. 

• The big dealership groups pulled back even harder, slashing acquisition spending by 91% to just $174 million. 

• Only AutoNation $AN ( ▼ 1.12% ) and Lithia $LAD ( ▼ 1.16% ) bothered making any moves at all.

• After years of aggressive expansion, even the cash-flush public companies decided to wait and see.

The twist: Haig Partners' own business tells a completely different story. The firm closed 18 dealership sales in Q1 and has another 36 in the pipeline. That would put them on track to match their 2024 performance of 58 deals—suggesting buyers aren’t walking away from dealerships entirely, just waiting for clarity.

Meanwhile, the actual business kept humming.

While deal-making froze, dealership operations were firing on all cylinders. Average pre-tax profits held steady at $1 million per store—down slightly from last year but still nearly double pre-pandemic levels.

The real tell? Strong revenue streams actually accelerated. F&I profits hit near-record highs at $2,505 per vehicle. And fixed operation profits rose 5.8% year-over-year (one of the fastest growth spurts on record.)

And then, tariffs stirred the pot. New import duties created a weird dynamic in March. Consumers rushed to buy cars ahead of potential price hikes, pushing light vehicle sales above 17 million units. But that buying frenzy drained dealer lots to their lowest inventory levels since 2023.

Brand winners and losers: 

• GM absolutely crushed it, posting double-digit growth across all four brands. That kind of performance helps explain why GM franchise values keep climbing. 

• Porsche led the pack with 40.6% sales growth. 

• Meanwhile, Stellantis continued struggling with an 11.9% decline. However, the relatively lower costs of acquiring a Stellantis point are attracting many dealers looking to buy on an upswing.

Despite all the uncertainty, franchise values stayed remarkably stable. Average blue sky values held at $20.7 million—just 1% below last year. And Haig Partners didn't adjust a single franchise multiple, signaling they see the freeze as temporary rather than fundamental market performance.

What happens next: Industry insiders expect the dam to break soon. Major deals are already queued up, like Asbury Automotive’s $ABG ( ▼ 2.11% ) pending $1.3 billion acquisition of Herb Chambers. With regulatory uncertainty starting to clear, all that pent-up demand has to go somewhere.

Bottom line: With dealership profits holding, valuations steady, and deal pipelines already filling up, expect a fast (and possibly fierce) snapback in activity as policy outlook clears.

Outsmart the Car Market in 5 Minutes a Week

No-BS insights, built for car dealers. Free, fast, and trusted by 95,000+ auto pros.

Subscribe now — it’s free. 

Want insider knowledge on the most up to date trends in auto retail?

The Haig Report® is auto retail's longest-published and most-trusted quarterly report tracking trends and their impact on dealership values. Since 2014, this report has delivered analysis on dealership performance, market trends, and franchise valuations—offering a clear view of opportunities and challenges in automotive retail.

Join the leaders in the industry who rely on the Haig Report® for:

• Exclusive insights into dealership values and valuation trends

• Franchise insights and outlooks on brand desirability

• Market trends to help you make informed business decisions

• The only report to publish blue sky values every quarter.

Looking to grow your portfolio or explore dealership investments? Join our exclusive buyer and investor database—visit haigpartners.com/buyerdatabase.