CBT News brings you exclusive coverage from the 2025 NADA Show in New Orleans, where Jim Fitzpatrick sits down with Erin Kerrigan, founder and managing director of Kerrigan Advisors. A frequent guest on CBT News, Erin shares her insights into dealership profitability trends, the buy-sell market, and how shifting market dynamics, including lower interest rates and evolving generational ownership transitions, are shaping the industry’s outlook for 2025. With a deep understanding of dealership valuation and market activity, Kerrigan provides a detailed analysis of what’s driving optimism and where the opportunities lie for dealers in the year ahead.
Key Takeaways
- Erin Kerrigan highlighted a positive sentiment among dealers, citing expectations for increased dealership profitability due to factors such as declining interest rates, a pro-business administration, and an anticipated rise in vehicle affordability. She projected that the SAAR (Seasonally Adjusted Annual Rate) could grow to between 16.5 and 17 million units, signaling a promising year for top-line growth in the automotive retail sector.
- In addition, Kerrigan emphasized the strong momentum in the buy-sell market, noting that 2024 exceeded expectations with the sale of 81 franchises. She attributed this success to stabilizing valuations, buyer confidence in dealership earnings, and the appeal of exiting the market while valuations remain high. She also pointed to generational transitions within family-owned dealerships as a key driver of transaction activity.
- In Kerrigan Advisors’ 2024 dealer survey, Toyota and Lexus emerged as the most desired franchises, with Honda and Subaru following closely. Interestingly, weaker-performing brands such as Nissan, Stellantis, and Infiniti accounted for the majority of top-selling franchises, reflecting a significant level of divestment activity. Erin noted the cyclical nature of some brands, with savvy buyers recognizing long-term opportunities even in weaker-performing franchises.
Catch all of CBT News’ coverage of the 2025 NADA Show here.
