Haig Partners Celebrates a Record-Breaking Year, Shares 2025 Auto Retail Outlook

Haig Partners LLC, a leading buy-sell advisory firm to auto, heavy truck, RV, and motorsports dealers in the US, proudly marks its 10th anniversary with a record-breaking year. Haig Partners shares its perspective on 2024 as well as its outlook on trends in auto retail for 2025.

In 2024, Haig Partners advised on 22 transactions involving 58 dealerships nationwide, solidifying its role as a trusted buy-sell advisor to some of the country's most successful and visionary dealers, helping them to maximize the value of their dealerships. The team advised on transactions ranging from high-value, single-point dealerships to numerous multi-point groups, including one platform valued in excess of $1 billion. We also helped our clients set record-high values for BMW, Honda, and Kia dealerships (and in 2023 we achieved record-high values for Toyota and Stellantis dealerships). Our clients’ locations ranged from South Florida to New England, across the Midwest, and into California, and we are grateful to all of them. What is most important to each of us at Haig Partners is that our clients are pleased with the services we provide and recommend us to their contacts in the industry. Our team has worked hard to earn a reputation of integrity, confidentiality, and outstanding results.

The auto industry employs over 4.5 million people. We are a small firm but have a unique perspective on our industry since we communicate regularly with hundreds of dealers, attorneys, CPAs, and lenders. The information we gain from these interactions, as well as the number of transactions in which we are engaged, helps us advise our clients, and we share our perspective in our quarterly Haig Report^®. Here is what we saw last year and what we expect to see in 2025:

2024 Highlights

• Consumers purchased 16M new units and 37M used units, up a total of 2% and 3%, respectively, from last year. (Source: Cox Automotive) The industry is still recovering.
• Average profits at dealerships remained about twice what they were in 2019.
• The fortunes of automotive brands diverged widely. Honda and Toyota dealerships remained close to record levels of profitability, while many Stellantis and Nissan dealerships began losing money.
• Dealership consolidation progressed steadily, with private dealers thriving and leading the charge—acquiring about 90% of the 500 dealerships that likely traded in 2024.
• Many dealers and the investor community were pleased with the outcome of the 2024 presidential election. The average US auto retail stock increased 9% from November 1^st to December 31^st, outpacing the S&P 500, which gained 3% during the same period. Dealers are entering the New Year with high confidence that business conditions will improve.

2025 Outlook

• Dealership profitability: Profits are expected to decline as new vehicle profits fall and expenses rise. However, average profits will remain at least 50% higher than 2019 levels, thanks to higher fixed operations and F&I.
• Regulatory relief: The incoming administration’s pro-business stance and potential easing of EV mandates could provide short-term relief for dealers, although trade tariffs may present new challenges. The net effect is likely going to be positive.
• Dealership consolidation: Consolidators have confidence and substantial liquidity. Many have been waiting for prices to fall, but due to strong earnings, dealership values will remain well above 2019 levels. We expect to see ~450 dealerships trade hands in 2025, down about ~10% from 2024.
• Dealership values: Blue sky values will decline slightly in 2025 but will remain at least 50% above pre-pandemic levels.
• Franchise outlook: Toyota and Honda dealers will do very well. The turnarounds of Stellantis and Nissan will take time. VW will hopefully decide to sell its Scout vehicles through its dealer network.
• China’s impact: Almost every OEM will lose share in non-US markets to Chinese automakers. These OEMs will have less money for marketing and new vehicle development, and they will focus more on the US market.
• The ‘Elon Musk Effect’: The most impactful entrepreneur of our time (ever?) will push the government toward accepting fully autonomous vehicles given his powerful position as “First Buddy.” Congress will face a choice of supporting the products and policies of the world’s richest man or supporting the millions of people working in the automotive industry outside of Tesla, including unionized auto workers, as well as drivers of ride-share vehicles, taxis, buses, and trucks. We reiterate our invitation to Mr. Musk to embrace the franchise system.

A Message to Dealership Owners

Whether you are preparing for your next acquisition, considering an exit, or simply seeking guidance on market conditions, Haig Partners is here to help. We are grateful to every dealer who has trusted us over the past decade and look forward to continuing to serve the auto retail community in 2025 and beyond.

Alan Haig, President at Haig Partners, said, “We are bullish on 2025. Many dealers we have spoken with reported a very strong Q4 2024, and they are interested in growing their companies through acquisitions. Top brands will continue to be highly valuable, while challenged brands will provide many opportunities for buyers who focus on value. Auto retail still provides a higher return on invested capital than just about any other industry we can identify.”

Join us at the AutoTeam America Dealer/CEO/CFO Forum and Buy-Sell Summit in New Orleans at NADA, where we are giving an update on the status of the buy-sell market and interviewing Group 1 CEO Daryl Kenningham. Or, come and hear us talk about how to build an acquisition strategy at our NADA workshop, set up a private meeting with us in New Orleans, or reach out to any member of our team to discuss how we can help you maximize the value of your life’s work^®:

About Haig Partners

Haig Partners is a leading buy-sell advisory firm that helps owners of higher-value auto, truck, RV, and motorsports dealerships maximize the value of their businesses when they are ready to sell. The team at Haig Partners has advised on the purchase or sale of 609 dealerships with a total value of $12 billion. It has represented 28 dealership groups that qualify for the Top 150 Dealership Groups list published by Automotive News, more than any other firm. Clients of Haig Partners benefit from the group's collective experience as previous executives with leading companies such as Ally Financial, AutoNation, Bank of America, Credit Suisse, Deloitte, FORVIS, J.P. Morgan, the Sewell Automotive Companies, and Toyota Financial Services. Leveraging its unmatched expertise and extensive relationships, Haig Partners guides clients to successful outcomes through a confidential and customized sales process. The firm authors The Haig Report^®, the leading industry quarterly report that tracks trends in auto retail and their impact on dealership values, and co-authors NADA’s Guide, “Buying and Selling a Dealership.” Haig Partners team members are frequent speakers at industry conferences and are regularly quoted in leading media outlets, including Reuters, Forbes, The Wall Street Journal, The New York Times, CNBC, BBC, Automotive News, Wards, CarDealershipGuy, and CBT News. For more information, visit www.haigpartners.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250107615996/en/