The U.S. auto dealership buy-sell market extended its record run in the first half of 2026, with 462 transactions completed in the trailing 12 months through June — edging past 2025’s record of 458 and running 107% above the pre-pandemic average — even as industry earnings declined, according to Kerrigan Advisors’ Second Quarter 2026 Blue Sky Report.

Analysts say the record pace is being driven by the largest groups’ conviction that scale, amplified by technology and AI, will define the industry’s next phase. The “Big 6” public dealer groups’ average acquisition spend per dealership surged to a record $119 million in 2026 — $67 million above their prior three-year average — and 91% of their acquisitions were in markets where they already had a presence, reflecting an increasingly disciplined focus on geographic concentration and market share.

In a release, executives note the Big 6 collectively closed or announced $2.6 billion in U.S. acquisitions in the first half, bringing trailing-12-month spending to $6 billion, the second-highest level on record.

“The future belongs to those who can combine scale with technology to operate more efficiently and reach customers well beyond their local market,” writes Ryan Kerrigan, managing director of Kerrigan Advisors. “New car dealers are taking note, and it is reinforcing their imperative to grow and invest to compete effectively, particularly in the age of AI.”

The Kerrigan Blue Sky Index held at 178 in the second quarter, 78% above its 2019 pre-pandemic level. The new report upgrades Kia’s and Honda’s blue sky multiple outlooks and downgrades Volkswagen’s and Audi’s, according to the report. Group 1 Automotive’s pending $1.3 billion acquisition of Hennessy Automobile Companies established a new large-group benchmark at $100 million in blue sky per dealership.

Read the full report at Kerrigan Advisors