The automotive buy-sell market is experiencing a slight slowdown with transaction activity down 14% in Q1 2025 compared to 2024, though still running 70% above pre-pandemic levels. The current market shows interesting shifts with single-store sellers dominating transactions while multi-dealership deals decline amid financial market volatility.

• Buy-sell market annualizing at about 375 transactions for 2025
• Single-store transactions now represent nearly 80% of all deals
• Multi-dealership transactions down 39% due to market volatility
• Industry earnings up 7% year-over-year for first time since pandemic peak
• Blue Sky values remain strong at 70% above pre-pandemic levels
• Regional market consolidation becoming dominant strategy for buyers
• Major metros expected to become highly consolidated within next decade
• Fixed operations continue providing stable profitability (about 50% of gross)
• Tariffs may actually benefit dealers through increased gross on limited inventory
• Stellantis and Nissan showing improved outlook with new leadership
• 76% of OEM executives believe Chinese automakers will eventually enter US market
• Chinese manufacturers now control 64% of Chinese auto market, up from 36%

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