The dealership buy-sell market maintained its record pace through the first half of 2026, with 224 transactions completed and the trailing 12-month total reaching a record 462, according to Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. Speaking on today’s CBT Live segment, Kerrigan said the market is being shaped by larger multi-dealership transactions, aggressive activity from public groups and growing demand for high-quality assets in major markets.
Public dealer groups invested $2.6 billion in acquisitions during the first half of the year, including Group 1 Automotive’s announced purchase of Hennessy Automobile Companies in Atlanta; their trailing 12-month total hit $6 billion. She noted this almost matches the public spending in 2021, their record year when deals totaled about $9 billion. The average Blue Sky expenditure per dealership by public groups reached $119 million in the first half, factoring in the Hennessy deal, which is twice the amount paid per store in recent years.
However, Kerrigan did note the unusual pace as buyers kept leaning in despite rising interest rates and declining industry earnings, with public groups down 15%. She observed a shift from the traditional hold-gross model to a volume model, citing a 30% increase in cross-state vehicle sales since 2021, indicating loosening geographic boundaries and more interest in multiple franchises within the same market.
Additionally, she described a flight to quality in which public groups now favor import and luxury franchises, accounting for more than 50% of their acquisitions this year. Lexus alone made up 18% of public groups’ acquisitions year to date, despite representing less than 1% of franchises nationwide, she said. Kerrigan added that 56% of this year’s acquisitions involved buyers already operating in that market, and more than 90% of public groups’ announced or completed deals fell in markets where they already had a presence, evidence that the industry remains in a regional rather than a national consolidation phase. About 70% of new-vehicle sales now come from just 30% of dealership rooftops, she said, underscoring how retail volume continues to concentrate among larger operators.
