More than two-thirds (68%) of the 600-plus U.S. dealers who responded to the latest Kerrigan Dealer Survey said they believe EVs will hurt their businesses, contributing to a six-year low (14%) in the number of dealers who believe their profits will grow in 2025.

The remaining 86% of dealers believe profits will decrease or remain steady. In 2021, when supplies were tight and dealership profits were soaring, 79% of dealers expected profits to increase in the year ahead.

A similar effect was felt on projected valuations: 83% of respondents expect the value of their store or group to decrease or stay the same; only 39% of dealers felt that way in 2021.

“This marks the third consecutive increase in the percentage of respondents who have a negative sentiment on valuation and a fivefold rise from 2021’s low,” Kerrigan analysts wrote. “Notably, the percentage of dealers projecting an increase in valuation was also the lowest on record at 17%, 44 percentage points below 2021’s peak and below 2019.”

Read the full report at Kerrigan Advisors