The auto dealership buy-sell market is showing no signs of slowing down in 2025, despite the introduction of new challenges by geopolitical tensions, tariffs, and tighter lending conditions. On the latest episode of CBT Now, we’re joined by Willie Beck, co-managing partner at Bel Air Partners, to outline the key factors driving ongoing transactions and what dealers should keep top of mind when navigating today’s evolving retail landscape.
According to Beck, the core motivations behind dealership sales remain steady: owners looking to exit due to age, lifestyle fatigue, or a lack of a succession plan.
“There are very capable buyers out there looking to expand and grow and diversify.”– Willie Beck
While tariffs haven’t been cited directly by sellers as the reason for exiting the business, they are influencing deal dynamics. Beck noted the recent 10% reciprocal tariff agreement with the UK as good news for brands like Jaguar and Land Rover, which had faced inventory challenges. The 90-day negotiation period with China, now underway, may set a precedent for broader trade policies, he added, noting the stock market’s positive reaction to President Trump’s quick trade turnaround.
Rising interest rates and inflationary pressures are also prompting lenders to become more cautious. “Deals are taking longer,” Beck explained. Lenders are now requiring more due diligence and deeper underwriting, which benefits larger dealership groups with multiple stores and broader lending relationships over smaller, single-point operators.
OEMs, meanwhile, are adding another layer of complexity. “They are taking longer to approve deals,” Beck said, especially when buyers are new to the brand. OEMs are heavily weighing KPIs like sales effectiveness and customer satisfaction scores, and they are increasingly focused on facility upgrades. In several cases, OEMs are giving buyers a three-year window to bring outdated stores into compliance with modern standards.
For sellers, Beck advised ensuring operations are in good shape before going to market. Transparency around underperformance is crucial. On the buy side, strategies remain split between acquiring underperforming stores to turn them around and securing premium-priced stores in top markets for steady growth.
Another emerging trend: sellers holding onto real estate post-transaction. While many buyers prefer to purchase the property outright, Beck said most are comfortable with a “reasonable pathway to ownership” over a 2–5 year period, especially in cases where facility relocations are required.
Overall, Beck concluded by highlighting an increase in calls for dealership valuations and a growing trend among independent dealers to explore partnerships with larger groups. These alliances can offer advantages such as vendor cost savings, improved floor plan rates, and enhanced operational scale.
