Q3 Report Finds Dealer Profits, Income Up in Flat Buy-Sell Market
The Presidio Group’s latest Quarterly Outlook on Auto Retail and M&A Trends finds the average U.S. dealer’s pretax profit and adjusted net income improved in Q3 while mergers and acquisitions remained on pace with the year-ago quarter.
Average pretax profit increased by 12.5% compared with the first three quarters of 2024, pushing the Presidio-NCM Average Dealership Profitability Index to 195, indicating a slower rate of growth than the prior quarter, while average net income improved by 6.6%.
Analysts say 112 buy-sell transactions involving 160 dealerships were completed in Q3, bringing year-to-date totals to 320 deals for 445 stores.
“The dealership M&A market has continued to gain momentum throughout 2025, and we don’t see the pace slowing down,” writes Presidio President George Karolis. “We continue to see a trend toward active portfolio management among sophisticated leadership teams positioning their dealership groups for long-term strategic growth.”
