Valuations are coming down. Why?

Though there was a lot of talk of slowing retail sales, this year looks to end quite strongly, with a SAAR of 17 million. NADA forecasts 2019 sales to be basically flat at 16.8 million. Still, there are clouds on the horizon, with several more interest rates hikes likely next year and continued uncertainty on the trade front.

These may be contributing to what I hear is a softening in the buy sell market as valuations come down a bit. Supply is also excellent. So, 2019 looks to be a good year to buy a dealership, or at least to buy some franchises, in some areas. What I mean is that, as always, multitude factors determine a dealership’s value.

We will continue to follow these trends in 2019. As always, we welcome new contributors. Contact me or my colleague Roberta if you are interested in writing for us. If you are engaged in buy sells, please let us know when you complete a transaction, so we can post the news.

Our readership continues to be very high-quality, and each newsletter has very strong open and click-through rates. If you are interested in advertising with us, contact Roberta Cuffin.

Have a happy holiday and we look forward to informing and working with you in 2019.

And…

We would like to graciously thank those dealers who have allowed us to profile them and the following businesses who have contributed content in 2018. We couldn’t do it without you!

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