Kerrigan Advisors’ latest Blue Sky Report finds single point dealerships represented 79% of buy/sells in the first quarter, up from 68% in 2023, but total transactions fell by 14% on a year-over-year basis.

In a video announcing the findings, Managing Director Erin Kerrigan says the standalone model is becoming increasingly disadvantageous, particularly in the most competitive markets.

“Single point dealers realize their longstanding way of doing business may not be viable as the costs of competing with the largest consolidators becomes increasingly prohibitive without scale,” she says.

The slowdown in activity and growing pricing concerns failed to significantly affect blue sky values, which remain elevated after a profitable quarter.

Referring to tariffs on imported vehicles, “They have not a meaningful impact, in our view, on average blue sky values, particularly as industry earnings rebound and buyers’ capital accounts continue to rise,” Kerrigan says.

The firm’s 2024 year-end report listed a total of 438 transactions, a new record and a 10% increase from the prior year.

Read the full report at Kerrigan Advisors