Declines in luxury-vehicle margins and sales in 2016 could mean lower values -- and less transaction activity -- for luxury-brand dealerships in the buy-sell market, two buy-sell advisers said.
In addition to margin and volume pressure, luxury-brand dealerships are experiencing a potential drag on values because of the pressure from some luxury-brand automakers to upgrade stores to new image requirements.
"Fewer buyers are comfortable paying the high prices demanded by sellers of top luxury, particularly as luxury sales and margins come under pressure and luxury manufacturers demand expensive facility upgrades," Erin Kerrigan, a buy-sell adviser in Irvine, Calif., said last week in her second-quarter Blue Sky Report.
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