New-vehicle margins thin as EVs drive volume
The six publicly traded dealership groups showed resilience in the third quarter of 2025 as new-vehicle profitability continued to contract from historical highs.
Robust performance in finance and insurance, including records for several of the publics, and consistent growth in fixed operations helped results for the peer group. Five of the six publics posted gains to adjusted earnings. Average adjusted net income for the group rose 6.6%.
Same-store new-vehicle sales volume rose for all six companies as the Sept. 30 expiration of federal electric vehicle tax credits drove more consumers to buy EVs before the quarter’s end. While tax credit expiration boosted volume, the resulting higher mix of lower-profit EVs contributed to narrower new-vehicle margins, though the degree of decline varied by company and brand mix.