Dealership Buy/Sell Market Rises

By Staff Writer December 04, 2020

Haig Partners released the Q3 Haig Report that tracks trends in auto retail and how they impact dealership values. The auto dealership buy-sell market is rebuilding toward pre-COVID levels. The number of public and private dealerships that sold in the U.S. increased 9 percent in Q3 2020 as compared to Q3 2019, with a total of 95 dealerships changing hands.

“It has been an amazing quarter for the auto retail industry. We went from a catastrophe in April and May, to record profits,” commented Alan Haig, president of Haig Partners. New and used vehicle margins spiked and there has been a big decline in expenses as dealers cut advertising, compensation and floorplan, according to the report. This is contributing to dealers making about $1.6 million per rooftop, more than they have ever made, even amid a pandemic.

Acquisition spending for the first three quarters of 2020 by publicly traded auto retailers exploded to $1.57 billion, attributable primarily to Asbury and Lithia.

Other key findings from the Q3 2020 Haig Report show that economic conditions continue to recover and dealership profits have set records in recent months.

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Last modified on Friday, 04 December 2020 15:31