Automotive News’ Post

We look into why UK dealerships are proving such a sweet deal for auto groups in North America https://lnkd.in/eEAAVipS #cardealer #attraction #dealerships #usa David Kendrick

“The industry has an overabundance of cash… and a lot of that money is going to be plowed into buying more dealerships.” Erin Kerrigan Kerrigan Advisors’ commentary from a recent American International Automobile Dealers Association (AIADA) webinar was featured in a WardsAuto article. Erin Kerrigan shares that one of the key drivers of today’s buy/sell market is the fact that dealers are sitting on record levels of cash and looking to deploy their capital into auto retail, the industry they know well. Read the full article: https://lnkd.in/gTYVvdYH #buysell #automotive #auto #dealerships #dealershipprofits #wardsauto

“There could be an increase in sellers ready to cash in on generations of hard work, as they suspect the automotive retail game may be changing.” Erin Kerrigan Commentary from Kerrigan Advisors' recent American International Automobile Dealers Association (AIADA) webinar and highlights from our 2023 Annual Blue Sky Report® were featured in a WardsAuto article written by Jim Henry this week. Despite higher interest rates and softening profit margins, buy/sell activity remains strong in 2024. Sellers are coming to market given strong blue sky values, and buyers are motivated to put their record profits from 2021 and 2022 to work. Read the article here: https://lnkd.in/egT_MM7S #wardsauto #blueskyreport #buysells #dealerships #automotive #autoretail #kerriganadvisors #aiada

At the retail level, nobody moved more units in 2023 than independent tire dealerships. https://lnkd.in/g9-e24b2 #moderntiredealer #tireindustry #tires #independenttiredealerships #tiredealers #tiremarket

Misconceptions about franchise car dealership Service departments persist despite industry efforts to change the conversation. You know how it goes: Dealership service centers are too expensive; the technician around the corner will do the same work; etc. As a result, many vehicle owners skip car dealerships and turn to independent and chain shops. Franchise dealers retain only about 30% of customers after warranties and maintenance programs expire, according to CDK Research. That lost revenue adds up to tens of millions of dollars every year. Yet, as vehicles become more advanced with more technology than ever before, and as EVs gain more market share, the expertise that the dealer’s Service department offers is key to keep vehicles running the way manufacturers intended. Every interaction your team has with a customer or prospect is an opportunity to change the conversation about your Service department. Read on for talking points to help counter three of the biggest misconceptions. https://eb1x.co/yed4uwi #automotiveindustry

Know your options before selling your car. 1) Sell it to a dealer 2) Sell it yourself online, 3) Sell it on consignment. Good Read on each.

Boom times fade as dealerships, used-car sellers face continuing challenges. After record revenue years during the pandemic and just afterward, dealerships are settling in to the "new normal" — which is similar to the old normal. The top franchised dealership groups — both public and private — readjusted revenue goals and looked for new areas of growth as they struggled with rising inventories, high interest rates, and expensive vehicles. Read the article https://lnkd.in/esKn2XYm

Although I contributed to this Automotive News Buy-Sell Expert Q&A last year, much of what was shared is still relevant for dealers looking to maximize the value of their business. Our conversation with our client Al Hendrickson started with Al considering buying stores. As we continued discussions and learned more about his goals over the next several years, we encouraged him to consider the value of his business, which ultimately led to an opportunity to create a "different kind" of family enterprise for his son in the future. We speak with many dealers who may not necessarily want to exit the business today but have it on the horizon in the next 5-10 years. So, taking advantage of the current elevated values and strong buyer demand today makes sense. There are other dealers we talk to with specific generational wealth goals they want to ensure for future generations. For some, a sale today could meet those goals and provide other generational wealth opportunities.

The last two years have been explosive for auto-retail buy/sell activity. More rooftops have traded hands in the previous three years than from 2016-2020 combined! 2021 saw the peak at 707 dealerships bought or sold, 2022 had 634, and coming soon in the Q4 | Year-end Haig Report®, we will release the total count for 2023. Even as buy/sells start to trend downward, Haig Partners has been the exclusive advisor on the sale of 5 record-setting dealership/dealership group sales in the last eighteen months. https://bit.ly/49Pgylv