Profits Are Down 16%. The Dealership Market Is Ripping. Here's Why.

Today I'm joined once again by Alan Haig, President at Haig Partners. Dealer profits fell 16% in the first quarter of 2026, yet the number of dealerships changing hands surged 39% over the same period last year. Alan breaks down the capital stockpile dealers built during the COVID era, why franchise values have held steady despite softer earnings, and which brands represent the best buying opportunities right now. From the math behind a Kia store acquisition to the real threat Chinese vehicles pose to US dealers, this is the clearest picture available of where the market actually stands. Topics: 00:20 Why Buy-Sells Boom While Blue Sky Drops. 01:45 The Profit Number Dealers Can't Hide From. 05:35 39% More Stores Sold In One Quarter. 06:10 The Brand Haig Partners Just Upgraded. 09:20 Two Beaten Brands Smart Money Is Snapping Up. 11:35 Inside Volkswagen's Disastrous Dealer Meeting. 14:10 Why AI Hasn't Made Dealers A Dime Yet. 19:55 The Metric Stuck For 50 Years. 25:05 The Senator Blocking A 23% Sales Crash. 32:25 The Tax Loophole Adding Millions Per Store. 36:30 Mercedes' Desperate Plea For Cheaper Cars. 42:10 The 20% Return Keeping Investors Hooked. This episode is brought to you by: 1. ‪@experian‬Fraud is becoming more sophisticated—and more costly—for dealerships. Experian's Fraud Protect solution helps dealers identify potential fraud risks earlier in the sales process by leveraging advanced data, analytics, and identity verification tools. From detecting income and identity fraud to uncovering synthetic identities and suspicious application activity, Fraud Protect delivers actionable insights that help dealerships make more confident decisions, reduce financial losses, and create a smoother experience for legitimate customers. Learn how Fraud Protect can help safeguard your dealership and protect profitability in an increasingly complex fraud landscape. Visit @ https://www.experian.com/lp/automotiv... for more info. 2. ‪@TryMatadorAi‬Discover why the biggest dealership groups in America are using Matador AI to enhance their Sales and BDC teams to sell and service more cars than ever before. Right now, podcast listeners get the first 30 days risk-free with an included white-glove onboarding, so you can experience the difference in your store. This offer is only available until the end of the month, so don’t wait! Head to @ https://matador.ai/ and book your demo today. 3. ‪@Haigpartners‬Public retailers cite it. National media trusts it. Dealers rely on it. The Haig Report® sets the standard for dealership M&A data and trends in auto retail. Read it @ https://haigpartners.com/Haig-Report/. Check out Car Dealership Guy’s stuff: For dealers: CDG Circles ➤ https://cdgcircles.com/ Industry job board ➤ http://jobs.dealershipguy.com Dealership recruiting ➤ http://www.cdgrecruiting.com Fix your dealership’s social media ➤ http://www.trynomad.co Request to be a podcast guest ➤ http://cdgguest.com For industry vendors: Advertise with Car Dealership Guy ➤ http://cdgpartner.com Industry job board ➤ http://jobs.dealershipguy.com Request to be a podcast guest ➤ http://cdgguest.com Car Dealership Guy Socials: X ➤ https://www.x.com/GuyDealership Instagram ➤   / cardealershipguy   TikTok ➤   / guydealership   LinkedIn ➤   / cardealershipguy   Threads ➤ https://www.threads.net/@cardealershi... Facebook ➤ https://www.facebook.com/profile.php?... Everything else ➤ https://www.dealershipguy.com