In 2024, Haig Partners celebrated a milestone year with 22 transactions involving 58 dealerships nationwide. From single-point dealerships to multi-location groups, including a platform valued at over $1 billion, our clients consistently maximize the value of their businesses through our guidance.
In 2024, we also helped clients set record-high values for BMW, Honda, and Kia dealerships, following record valuations in 2023 for Toyota and Stellantis stores. Our reach spanned coast to coast, from South Florida to California, providing exceptional results while earning our clients’ trust. The cornerstone of our work is integrity, confidentiality, and outstanding outcomes, and we’re honored to have our clients recommend us to their peers.
2024 Auto Industry Highlights
The automotive industry remains a vital part of the U.S. economy, employing over 4.5 million people. Our unique perspective, shaped by regular interactions with dealers, attorneys, CPAs, and lenders, gives us an edge in understanding market trends. Here’s what we observed in 2024:
- Consumer Trends: New vehicle sales rose 2%, totaling 16 million units, while used vehicle sales climbed 3%, hitting 37 million units. (Source: Cox Automotive)
- Profitability: Dealership profits held strong, remaining about twice as high as in 2019.
- Brand Performance: Honda and Toyota dealerships stayed near record profitability levels, while Stellantis and Nissan saw financial challenges.
- Consolidation Trends: Private dealers dominated the acquisition landscape, purchasing approximately 90% of the 500 dealerships sold in 2024.
- Investor Confidence: The 2024 presidential election bolstered dealer optimism, with auto retail stocks outperforming the S&P 500 in Q4.
What’s Ahead for 2025?
Looking to the future, the auto retail landscape will evolve further in 2025. Here’s our outlook:
- Profitability: Average profits are expected to decline as new vehicle margins tighten and expenses rise. However, profits will remain significantly higher than pre-pandemic levels.
- Regulatory Environment: A pro-business administration may provide short-term relief through eased EV mandates, though trade tariffs could bring new challenges.
- Consolidation: With confidence and liquidity, consolidators will remain active, though the number of transactions may decline slightly.
- Dealership Values: Blue sky values may dip slightly but will still be well above pre-pandemic benchmarks.
- Brand Dynamics: Toyota and Honda dealerships are poised for strong performance, while Stellantis and Nissan require more time for recovery.
- Emerging Trends: The rise of Chinese automakers and the push for autonomous vehicles will shape OEM strategies and dealer networks.
Partnering for Success
At Haig Partners, we’re not just advisors; we’re partners in helping dealership owners navigate complex markets. Whether you’re considering an acquisition, exploring an exit strategy, or seeking insights on market conditions, our team is here to guide you every step of the way.
Alan Haig, President of Haig Partners, reflects, “We are bullish on 2025. Dealers are entering the year with confidence and a strong foundation for growth. Auto retail remains one of the best-performing industries, offering unparalleled returns on investment.”
Stay Ahead with Haig Partners
For over a decade, Haig Partners has been dedicated to helping dealership owners achieve their goals. Through our quarterly Haig Report®, we share insights gained from extensive market activity and in-depth analysis to keep the industry informed.
We’re grateful to the dealers who trust us with their businesses and look forward to serving the auto retail community in the year ahead.