Overview
Savills expects UK car dealership investments to enter a remarkably promising phase in 2026 after a subdued 2025. Deal values fell to their lowest level since 2012, with £110.8 million in transactions by year-end, creating a rare window for buyers as pricing resets and available stock is steadily absorbed.
Key points
- 2025 marked a trough similar to 2012, which previously preceded a surge in demand.
- Total transactions reached £110.8 million in 2025, with supply tightening as assets were absorbed.
- Pricing readjustments and reduced competition are favouring investors able to act quickly.
- Overseas buyers remain active: 15+ UK dealership group acquisitions since 2022, notably from the US and Middle East.
- Physical dealerships remain central to the customer journey, even as digital research grows.
- Operationally advanced sites—integrating digital-to-physical experiences, rapid appraisals, efficient prep—are outperforming.
- 2026 could bring lower entry prices on some assets, more flexible terms, and faster deal timetables.
Implications for investors
- Prioritise high-quality sites and groups with strong digital-to-physical integration and process efficiency.
- Be prepared to move decisively as competition may intensify, especially on prime assets targeted by overseas buyers.
- Expect tighter stock and focus due diligence on leases, franchise alignments, and operational KPIs.
- Monitor how pricing and terms evolve as confidence returns and transactions accelerate.
What to watch in 2026
- Early-year deal flow and pricing momentum versus the 2025 low base.
- Level of cross-border activity and its impact on valuations.
- Speed of stock absorption and the balance of supply-demand for prime sites.
Overall, a combination of a low 2025 base, pricing recalibration, and durable in-person buying preferences suggests a rebound in 2026, offering a time-limited opportunity for buyers ready to transact.
