Mar 31 2025

The U.S. automotive dealership market is experiencing a sharp uptick in buy/sell transactions, as smaller dealership groups seek to consolidate in order to stay competitive with rapidly growing national chains. Industry analysts say this consolidation wave reflects a broader transformation in how vehicles are bought, sold, and serviced in the digital age.

According to data from Kerrigan Advisors, dealership buy/sell activity in Q1 2025 rose nearly 20% compared to the same period last year — with notable deals involving regional players in the Midwest, Southeast, and Southwest.

“The dealership model is evolving fast,” said Erin Kerrigan, managing director of Kerrigan Advisors. “We're seeing groups expand not just to gain market share, but to invest in technology, streamline operations, and deliver a more personalized, digital-first customer experience.”

Driving this shift is the rising demand for online car buying platforms, virtual vehicle tours, and mobile service appointments — features smaller, independent dealerships have struggled to offer at scale. Larger dealership networks are leveraging their resources to roll out these capabilities more efficiently, gaining a competitive edge.