Selling An Auto Dealership: A Step-by-Step Guide for Dealership Owners

If you’re considering selling your automotive dealership—whether to retire, pivot industries, or cash in on years of hard work—you’re not alone. The market for buying and selling dealerships is active, and investors are constantly seeking profitable opportunities. But selling an auto dealership is not as simple as listing it online. It’s a complex process that requires planning, precision, and the right partners.

This guide walks you through the most important steps for selling your dealership to the right buyer—whether it’s an investor, another auto group, or an individual buyer.

Before taking any action, define your objectives:

• Are you looking for a quick sale or maximum valuation?

• Do you want to stay involved as a minority partner or exit completely?

• Is there an ideal time of year to sell in your market?

A clear understanding of your personal and financial goals will shape the entire sales process.

When selling an auto dealership, understanding what your dealership is truly worth is critical. A dealership broker can help you:

• Assess your real estate, inventory, blue sky value, and goodwill

• Analyze your past financials and project future earnings

• Compare your dealership to recent regional sales

This valuation helps set a realistic asking price and attract serious buyers.

Buyers—especially investors—will scrutinize your numbers. Make sure to prepare:

• 3–5 years of profit and loss statements

• Current balance sheets

• Inventory reports

• Service and parts performance data

• Franchise agreements and manufacturer statements

Organizing this information not only speeds up the due diligence process, but also positions your dealership as a turnkey opportunity.

Selling a dealership is not like selling a house. It’s a business transaction that requires industry-specific expertise. A specialized automotive brokerage firm can:

• Confidentially market your dealership to qualified buyers

• Pre-screen interested parties and handle NDAs

• Manage negotiations and ensure proper valuation

• Guide you through legal and financial documentation

Working with an experienced broker also gives you access to a network of investors and dealership groups actively looking for acquisition opportunities.

The right buyer could be an individual investor, a local competitor, or a national auto group. But marketing your dealership publicly can spook employees and disrupt operations.

That’s why confidential marketing is critical. Your broker will:

• Develop a blind teaser with just enough information to attract serious buyers

• Vet inquiries to avoid tire-kickers and protect your identity

• Coordinate virtual or in-person meetings discreetly

Once you have a serious buyer, the negotiation process begins. This may include:

• Asset vs. stock sale structure

• Real estate ownership and leases

• Transition and training period

• Non-compete clauses

• Manufacturer approval process

Having an experienced brokerage team on your side ensures you avoid common pitfalls and get the best possible outcome.

Once terms are agreed upon, the deal moves into due diligence and closing. Your broker and legal team will work with the buyer’s team to finalize:

• Purchase agreements

• Manufacturer and franchise approval

• Licensing and regulatory filings

• Inventory valuation and real estate transfer

When everything checks out, the transaction is closed—and your next chapter begins.

Selling your auto dealership is one of the most important financial decisions you’ll ever make. With the right guidance and brokerage support, you can achieve a profitable and smooth transaction. At Hicks Management & Consulting, we specialize in guiding clients through the full lifecycle of auto dealership sales and ownership. In case you’re planning on working with auto dealership brokers or preparing for your dealership for sale, we can help.

Reach out to us to explore how our experience can bring clarity to your next move in the automotive space.