Kerrigan Advisors’ seventh annual Dealer Survey finds changing attitudes toward technology and dealership performance, including a long-awaited shift in valuation sentiment.

Only 10% of respondents say they have not invested in AI-powered tools and have no plans to adopt any; 43% of dealers already have and 47% plan to do so this year.

“Based on these results, Kerrigan Advisors expects AI to have a meaningful impact on industry results in 2026 and beyond,” analysts write.

For the first time since 2021, more dealers expect their enterprises to grow in value (24%) than decline (16%). Income expectations improved significantly, with 32% expecting higher profits in 2026, up from 14% in last year’s survey.

Analysts note only 20% of respondents expect profits to decline, down from 43% a year ago. “The improved earnings outlook is consistent with the expectations of higher valuations in 2026 and a more constructive industry outlook.”

Read the full report at Kerrigan Advisors