Despite concerns about tariff hikes and geopolitical instability, dealer sentiment around profitability and dealership values is improving, the Presidio Midyear 2025 Dealer Direction Survey revealed.
About 72% of dealers responding to the survey expect profitability to stay the same or improve over the next 12 months, up from 65% at year-end 2024 and significantly better than 37% a year ago. During that time, average dealership profitability has stabilized after sharp drops from pandemic-era peaks. The typical U.S. franchised store posted its first overall post-pandemic gain in pretax profit in the first quarter of 2025, according to the Presidio-NCM Average Dealership Performance Benchmark.
About 75% said they expect dealership values to stay the same or improve over the next 12 months, up from 64% at year-end 2024 and 45% in mid-2024. Dealers pointed to continued consolidation and the possibility of fewer U.S. dealerships in the long run as factors supporting stable or growing valuations but noted that the value of any particular store will always be dependent on brand and geography.