As they head into 2026, U.S. auto dealers remain optimistic but realistic about their profitability prospects. While vehicle affordability is a growing top concern, most dealers expect stable or improving business performance in the year ahead, according to the Presidio Year-End 2025 Dealer Direction Survey. Interest in buying dealerships remains strong, with the majority of survey takers wanting to acquire.

More than 68% of survey respondents expect profits to be steady or increase over the coming year. They are even more optimistic looking at the next three years, with 75% forecasting steady or improved profits. Compared with Presidio’s midyear 2025 survey results, dealers’ expectation about near-term profitability has slightly softened, while their outlook for the next three years has improved.

“Dealers have adjusted to multiple disruptive cycles in recent years and have built operational discipline,” said George Karolis, president of The Presidio Group. “While challenges remain — from regulatory and tariff policy, to cost and affordability concerns — most are positioning for measured growth and remain attentive to factors that could affect both day-to-day profitability and long-term value.”