While dealership transactions slowed last year, 2024 is still likely to be the fourth busiest buy-sell year ever. Presidio estimates the final tally for the year will come in around 360 transactions involving 515 dealerships once all 2024 deals have been reported. That would put 2024 behind transaction totals for the previous three years — and well behind the blockbuster year of 2021 when several megadeals pushed the number of stores sold to 707.
2024 deal closings notably slowed in late summer and fall as the presidential election approached. Pressure on already falling vehicle margins and uncertainty about the regulatory environment and dealership profitability delayed some transactions and put some buyers on the sidelines.
Since the election, the momentum has swung. The number of deals on the market has picked up, and our team has had steady conversations with dealers looking to both buy and sell. As of early 2025, Presidio’s deal pipeline is more robust than ever before. Indications are that buy-sell activity in 2025 will likely be steadier than last year.
Demand remains choppy, however. Brand and geography matter more than ever. It is still a seller’s market for those divesting dealerships representing desirable brands and in great locations. But it’s become much harder to sell stores representing challenged brands, struggling with steeper profit slides or located in less desirable geographies. Being rational about pricing is increasingly important to getting deals to the finish line.
The Presidio team is seeing increased emphasis on portfolio management by savvy dealership groups, and we expect that to continue. Strategic evaluation and optimization of store networks likely will be a defining trend in the dealership buy-sell market in the years to come.
The best dealership groups, especially the larger ones, aren’t staying put. They continually evaluate their portfolios from multiple angles — geographic fit, brand alignment and financial performance — and identify stores that may no longer align with their long-term vision. In the current strong deal climate, many are seizing the opportunity to divest these non-core assets and free up resources to put into more promising investments.