F&I income per vehicle increased by 3.5% to $1,738 and fixed ops gross profit improved by 5% on a year-over-year basis in the third quarter, partly offsetting declines in sales volume and gross profit per vehicle, according to the latest Presidio-NCM Average Dealership Performance Benchmark report.

The average U.S. franchised dealer suffered a 9.9% decline in net pretax profit following an 11.8% drop in Q2, analysts say, noting that the year-ago quarter followed pull-ahead demand from new tariffs and ended with the Sept. 30 expiration of a federal tax credit EV buyers rushed to claim.

“Those policy-driven catalysts created periods of unusually strong and uneven sales, particularly for brands with high EV exposure,” the report states. “In 2025’s third quarter, the average dealership posted a 7.0% increase in net pretax profit, a tough comparison for this year’s third quarter. The 2026 market has largely returned to an organic supply-demand environment.”

Analysts note per-dealership revenue increased by 2.6% to $23.5 million year over year despite marked declines in new vehicles retailed (down 1.8% to 228) and new vehicle gross profit (down 10.5% to $1,741). Franchised dealers sold an average of 188 used units at a $1,286 average gross profit, down 0.7% and 4.5%, respectively, compared with the year-ago quarter.

“The industry is currently in a more traditional market than we’ve seen in some time,” writes Presidio Group COO and Managing Director Keith Style. “Gross profit per new vehicle retailed has now declined for five straight quarters, underscoring the challenge of balancing volume and profitability in a more normalized market.”

Read the full report at The Presidio Group