BSR The Buy-Sell Report Dealership ownership intelligence
Seller guide

How to sell your car dealership

This guide answers the questions owners ask before selling a franchised new-car dealership: the steps, how long a buy-sell takes, blue sky value, whether to use a broker, and where to see recent buy-sells. Each answer cites its source. The Buy-Sell Report has recorded 643 buy-sell store records since June 2025, from state license records and industry reporting; a deal that moves several stores is several records.

This page is general information, not legal, tax or financial advice.

What are the steps to sell a car dealership?

The sources cited here describe the sale of a franchised dealership in eight stages: deciding to sell, valuing the business, choosing an advisor or selling directly, marketing the store confidentially, signing a letter of intent, due diligence, the manufacturer's approval of the buyer, and closing. An article written by a partner of Performance Brokerage Services for the Louisiana Automobile Dealers Association's magazine walks through these stages from preparation and valuation to closing, and calls manufacturer approval a critical step for all dealerships.

  1. Decide and prepare. Baker Tilly advises sellers to perform sell-side due diligence early, even before they are ready to start a transaction, and to discuss their financial goals with their advisors.
  2. Value the business. The LADA article describes gathering financial data, cleaning up operational issues and determining a market-driven valuation before the store is shown to buyers.
  3. Choose an advisor or sell directly. Haig Partners frames the choice as selling the business yourself, asking your attorney or CPA to find a buyer, or engaging a buy-sell advisory firm.
  4. Market the store confidentially. The LADA article describes presenting the dealership confidentially to a select group of qualified buyers.
  5. Sign a letter of intent. Offers are negotiated into a letter of intent that settles key terms such as purchase price, long-term contracts and real estate, according to the LADA article.
  6. Due diligence. After the letter of intent is signed, the buyer reviews the dealership's financials, contracts and operations, and the definitive purchase agreements then set the final terms (LADA article).
  7. Manufacturer approval of the buyer. Acquisition Stars, a law firm, writes that OEM consent is not a formality and that manufacturers exercise genuine discretion over who may own their franchises.
  8. Close. At closing the final documents are put in place and any post-closing requirements are met (LADA article).

State dealer laws can set the manufacturer's deadline. In California, Manning Leaver reports that AB 2707 requires the franchisor to approve or disapprove a proposed transfer within 60 days of the dealer's notice and a completed transfer application, a period the parties can extend by mutual agreement. A franchise agreement may also give the manufacturer a right of first refusal: the right to step into the buyer's position and acquire the dealership on the terms the buyer and seller agreed (Acquisition Stars).

How long does a dealership buy-sell take?

Baker Tilly, an accounting firm, says dealership deals typically take about six months from start to finish, given the complexity of a dealership transaction. It also warns that the longer a transaction takes, the more room there is for a decline in dealership performance, economic disruption, brand-related events and employee fallout.

Manufacturer review is one part of that time. Acquisition Stars recommends running the manufacturer application in parallel from the outset rather than after every other step is complete. It also advises counsel to identify any statutory deadline for the manufacturer's decision at the outset and calendar it; California's is described under the steps above (Manning Leaver). The Buy-Sell Report does not measure how long deals take.

What is blue sky value?

Blue sky is the dealership industry's term for the intangible value tied to a dealer's sales and service agreements with a manufacturer, according to Mercer Capital, a valuation firm. Mercer Capital says a blue sky multiple is applied to pre-tax income, and the result is added to the fair market value of the tangible assets, such as real estate and equipment, to reach the dealership's total value. In accounting terms it is goodwill: EisnerAmper describes goodwill, also known as blue sky, as an intangible asset that is not easily quantified.

In Mercer Capital's own worked example, pre-tax earnings of $1,000,000 at a multiple of 5x give a blue sky value of $5,000,000 (Mercer Capital).

Do you need a dealership broker?

It is a choice, not a requirement: Haig Partners, itself a buy-sell advisory firm, lists the options as selling the business yourself, asking your attorney or CPA to find a buyer, or engaging an advisory firm. Haig Partners argues that an advisor adds value by running a competitive sales process, preserving confidentiality and speeding the sale; that is an advisory firm's view of its own service. According to Automotive News data cited by Haig Partners, 64 percent of the dealerships sold in 2022 were represented by a buy-sell advisory firm.

An owner who sells without an advisor still goes through every stage above, including the manufacturer's approval of the buyer. An owner who hires one should know how the advisor is paid and whom else it represents (see the next two answers).

How are dealership brokers paid?

Fee terms vary by firm and by engagement, and they are set in the engagement letter you sign with the advisor. This guide gives no fee figures, because none of the sources it could check states fee structures for dealership sales. Before you engage a firm, ask it to put in writing what its fee is, what event triggers it, and whether any part is due up front.

How do I find a broker who works in my state and brand?

The firms below are named as broker or advisor on franchise dealership store records in The Buy-Sell Report since June 2025, listed alphabetically with the states and brands where each appears. Subscribers see each firm's verified deal record.

Each firm has a profile in the broker directory.

How to evaluate a broker

How can I see who bought dealerships near me?

Each month has its own activity page in The Buy-Sell Report, with that month's franchise dealership store records by type and by state, and its latest buy-sells that name a buyer or seller. The latest month on file is September 2026, and the month index lists every month. Subscribers see buyer, seller and broker detail for every record.

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See every dealership buy-sell in full

Buyer, seller and broker detail for every store record, and each broker firm's verified deal record, for $249 a year.

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