Kyle Coleman recently became a first-time dealer principal after 18 years working in retail automotive. His acquisition is the foundation for a group he aims to grow to 40 rooftops over the next 15 years.

For the last two or three years, few of Withum’s dealership clients looked at their expense structures, Stuart McCallum, leader of the tax advisory firm’s dealership services practice, says. Dealerships were making money hand over fist and didn’t feel the need to conserve money. Those days are gone.

If you’ve held on to your dealership to enjoy the historically high profits of the last few years but now you’re thinking of selling, the market has changed. Keep that in mind as you prepare to sell. James “J.T.” Taylor, managing director, automotive at Truist Securities, has advice for dealers thinking of selling their business in today’s market.

The dealership world has just come off two of the most profitable years in the industry’s history. The conditions that created that profitability are gone, however, and those looking to acquire a dealership are faced with the question of how to determine what the fair price for a franchise is.

Dalton Motors continued its U.S. expansion with the acquisition of a Hyundai franchise in National City in Southern California on January 31.

Buyers of ultra-luxury cars have high expectations, not just of the car and the customer experience, but also the dealership. From the interior materials used to including storage space for clients’ cars, ultra-luxury dealership facilities must create the right environment for their wealthy clientele.

Customer experience is important to all dealerships, but with ultra-luxury brands that takes on a unique dimension. Ultra-luxury brands rely on exceptional events that create and maintain a sense of community among clients and bond them to the dealership. Such bonds are crucial to a dealership’s success.

Ultra-luxury franchises don’t come on the market often, and valuing one involves special considerations that often don’t apply to other auto franchises, say Willie Beck and Todd Berko, managing partners at Bel Air Partners. That’s because ultra-luxury automotive brands are in a league of their own.

As auto manufacturers announce plans to add ever more electric vehicles to their product portfolios, many also are requiring their dealer bodies to make substantial investments to prepare to sell those vehicles. In some instances, the manufacturer also is attempting to assume some aspects of the sales process previously controlled by the dealer.

Ford dealers are worried that some aspects of the Model e program are a slippery slope leading to the agency model of selling vehicles. In an agency model approach, the manufacturer sets the price and manages the online customer relationship. The dealer serves as the delivery point for the vehicle.