The Presidio Group's Midyear 2026 Dealer Direction Survey paints two different pictures depending on the timeframe. Nearly half of dealers surveyed expect profits to decline over the next year. At the same time, most still expect their store values to hold or climb over the next three years.
Short-term fear and long-term confidence aren't contradictions. They're two different timelines the same dealer is watching at once.
❝ Not all brands are equal. ❝
🎙️ Want the full conversation?
Listen to today's Automotive State of the Union episode for the complete discussion, additional context, and the conversations that shaped our perspective.
Where the Profit Is Actually Coming From Now
📊 By the Numbers
44% expect profits to decline next year, vs. 23% expecting gains
80% cite parts and service as a top profit driver
57% cite F&I as a top profit driver
64% are interested in buying stores
78% expect dealership values to stay stable or rise
Margin compression is happening industry-wide, not just in retail auto. Every business built on delivering value now competes against a cost floor that keeps rising, and dealers who haven't found real operational efficiencies are the ones absorbing that squeeze directly in their margins.
The dealers pulling ahead aren't waiting for margins to recover. They're finding the efficiency now.
That's part of why buy-sell appetite remains strong even in a tighter year.
