Alan Haig, President of Haig Partners, joined Yossi Levi on the Car Dealership Guy Podcast to break down the state of the dealership buy-sell market in Q1 2026. Despite softer operating metrics across the board, M&A activity accelerated, pointing to a market driven by capital confidence and long-term conviction in auto retail.

A central theme was the disconnect between dealership operating performance and transaction volume. While profits are down from their peak, they remain well above pre-COVID levels, and buyers with significant capital on their balance sheets continue to view franchise dealerships as one of the strongest available returns on invested capital.

Key takeaways:

• Buy-sell activity surged 39% year-over-year in Q1 2026. Despite declining sales, compressed margins, and fixed ops growth barely keeping pace with inflation, transaction volume rose sharply, reflecting dealer confidence in the long-term franchise model.
• Blue sky values dipped modestly, but multiples held steady. The decline was driven by lower earnings rather than multiple compression. Most franchise valuations in the Q1 2026 Haig Report remained unchanged, with Volkswagen a notable exception, moved to a flat dollar value given how far store earnings have fallen.
• Franchise performance is increasingly polarized. Lexus, Toyota, Mercedes-Benz, BMW, and Porsche remain at the top. Stellantis and Nissan are viewed as the strongest turnaround opportunities. Buick GMC received an upgraded valuation multiple this quarter, reflecting higher truck margins relative to Chevrolet.
• Chinese EVs are a monitored risk, not a current pricing factor. With Chinese brands capturing 23% market penetration in Europe in Q1, the long-term threat is real. Industry sentiment, however, leans toward a manageable impact in the U.S. given domestic manufacturing depth and political will to protect the industrial base.
• Haig Partners' pipeline is active across all major markets. Current deal flow spans California, Florida, Texas, and the Midwest, with inventory across brands including Toyota, Honda, Mercedes-Benz, Lexus, Ford, Hyundai, and Nissan.

To learn more about the current trends in auto retail, the value of your business or to have a confidential conversation, contact Alan Haig. Alan@HaigPartners.com | (954) 646-8921