As dealership owners look ahead to 2026, the automotive retail landscape is being shaped by forces that extend well beyond day-to-day operations. Macroeconomic conditions, OEM production discipline, inventory dynamics, and capital market shifts are redefining how dealers think about profitability, growth, and the timing of strategic moves.
In DealersEdge's webinar, Alan Haig, President of Haig Partners, and John Murphy, CFA, Managing Director of Strategic Advisory, delivered a data-driven discussion on the 2026 dealership M&A environment and the broader automotive economic outlook, grounded in real market activity and long-term industry trends.
The conversation focused on the deeper structural forces shaping dealership values, profitability, and buyer behavior, providing context beyond short-term market noise.
Key Topics and Highlights From the Discussion
Macroeconomic and Industry Backdrop
- Pent-up demand remains elevated, but OEM production discipline is limiting volume growth.
- Consumer confidence remains historically low, creating affordability tension.
- Automakers are prioritizing pricing and margins over scale.
Inventory and Pricing
- New vehicle inventory has normalized but remains tight relative to historical levels.
- Late-model used vehicle supply remains structurally constrained.
- Transaction prices remain near record highs.
Dealership Profitability
- New vehicle grosses remain above pre-pandemic norms.
- Fixed operations continue to drive the majority of dealership profits.
- Significant opportunity remains to capture more lifecycle revenue.
M&A and Strategic Positioning
- Dealership values remain well above pre-pandemic levels.
- Buyers are prioritizing strong franchises and markets.
- Selective divestitures are occurring as groups redeploy capital.
Key Risks to Monitor
- Trade policy and tariff-related cost pressures.
- OEM EV strategy resets and capital write-downs.
- Interest rate and tax policy impacts on demand.
Watch the full conversation here to hear Alan Haig and John Murphy break down the data, trends, and strategic implications shaping dealership M&A and the automotive retail market heading into 2026.
Download the presentation to review the charts and data shared during the webinar.
