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2016 will see fewer dealership acquisitions

DETROIT — The hot dealership acquisition market is likely to slow in 2016 as retailer profits get squeezed by plateauing new-vehicle sales.

Some of the industry’s most prominent dealership acquirers say they expect to do fewer deals this year because they are unwilling, in the face of slipping profits, to pay prices that would presume a continuation of 2015’s robust profit margins. But sellers aren’t ready to lower their asking prices just yet.

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