Unprecedented headwinds are bearing down on the traditional family-owned dealership, forcing many to exit the market, say automotive finance and acquisition specialists.
Automakers want dealers to upgrade stores to service EVs as well as for new internal-combustion-engine technology, Masi said. “The kids are not interested in taking on the financial risk,” Théorêt said. “The question is, is there going to be an appetite for the next generation to take on the challenge?”Terry Souch, who recently sold Marigold Lincoln in Whitby, Ont., said the sale of the dealership to his son, Mike, wasn’t on the table, even though he had a senior role with the company. Mike remains at the dealership as an employee.
Groups have a better chance of securing financing because they have more collateral to post against debt, Théorêt said.