Which way is the dealership M&A market headed? Depends on whom you ask. In its Second Quarter 2024 Blue Sky Report, released Monday, Kerrigan Advisors cited a record number of dealership acquisitions during the first half of this year and said the current rate of nearly double pre-pandemic levels projects to a record year with more than 760 franchise sales. A week earlier, Haig Partners’ Q2 Haig Report pointed out a decline in dealership profits in that has slowed demand and the pace of the buy-sell transactions, as well as a decline of dealership blue-sky values. The report projects some 500 stores to be sold, fewer than in 2023, though still the fourth-most active year in history. Another report issued this week ... [Read More]

Supply is better than a year ago but starting to tighten in the used-car market; meanwhile, wholesale vehicle prices in August climbed month-over-month and week by week, though were lower than year-ago levels. That’s according to monthly indices and top industry analysts monitoring activity in the used-car market. Black Book’s Used Vehicle Retention Index came in at ... [Read More]

Burak Cendek is a partner at Autotech Ventures, a venture capital firm focused on early-stage companies in the ground transportation space, and heads up several investments in the remarketing and fintech areas of automotive. He joins Cherokee Media Group senior editor Joe Overby for an Auto Remarketing Podcast conversation about the areas of automotive tech […] [Read More]

Supply is falling. Demand is rising. Anyone with a basic understanding of economics knows what that means. And as the law of supply and demand decrees, used car prices are beginning to rise, according to CarGurus’ August 2024 Intelligence Report, released this week. The report showed used-car inventory levels down in August for the third […] [Read More]

Owners of electric vehicles are ready to come back for more. The 2024 EV Driver Survey, conducted early this year by nonprofit organizations Plug In America and EPRI, found 89% of EV owners said they are likely or very likely to purchase an EV as their next vehicle, a result Plug In America said has […] [Read More]

Leasing is continuing to gain momentum, helping dealers put their customers into vehicles today with the potential for having the late-model inventory stores need tomorrow. According to Experian’s State of the Automotive Finance Market Report: Q2 2024, leasing is re-emerging as an optimal choice for those seeking flexibility and affordability with the market penetration reaching […] [Read More]

I have a suspicion that the month of August will look pretty good for dealers as far as used vehicle sales volume, but their month-end gross profit tally will likely be less-than-satisfying if not distressing. My suspicion flows from dealer conversations in the past two weeks where the No. 1 topic of conversation was concern […] [Read More]

With dealership profits declining, the demand for acquiring those businesses has cooled, according to the latest research from Haig Partners. The company’s Q2 2024 Haig Report found dealership profits declined 32% in the first half of 2024 compared to the same period last year and the average pre-tax income for publicly owned dealerships of $1 […] [Read More]

Black Book has promoted data scientist Yushan Liu to director of data science in its data and analytics department. The company said she’ll be responsible for leading and expanding the data science team, as well as setting the vision, strategy and road map for data science initiatives. Liu, who holds a Ph.D. in Chemometrics and […] [Read More]

Managing inventory risk is not just about avoiding losses but also about optimizing profitability. For auto retailers, maintaining an ideal balance between supply and demand is critical. Too much inventory can lead to increased holding costs, while too little can result in missed sales opportunities. The latest Q2 inventory risk report sheds light on how […] [Read More]