Dealership consolidation has accelerated in 2019. In the first quarter of 2019, 54 dealership transactions were completed, representing a 38.5% increase over the first quarter of 2018. Domestic franchise dealership consolidation continues to increase while non-luxury foreign franchise, such as Hyundai, Kia, Mazda, Nissan and Volkswagen have declined. This heightened activity was primarily driven by private buyers, fueled by private equity, who acquired 95% of the franchises sold during this period. 1 Why does dealership consolidation matter to the auto F&I industry? Recall from Colonnade’s latest whitepaper on the VSC industry, the most significant challenge to administrators and … [Read more...]