The number of auto dealerships is rising, but the 19% sell fewer than 150 new vehicles per year

19% of U.S. dealerships sell fewer than 150 new vehicles per year. That’s more than 320,000 rooftops operating at very small scale.

And yet, the total number of dealerships keeps rising—up 334 since 2020 to nearly 17,000 nationwide.

The result? A market that’s both growing and fragmented. Thousands of small operators coexist alongside large consolidators, creating active opportunities for M&A.

Colonnade Advisors helps owners and investors navigate this shifting landscape. Contact us to discuss how scale, fragmentation, and consolidation are influencing valuations in the dealership industry.