In Practise Logo
In Practise Logo - Blue
In Practise Logo
IP Interview
Published January 6, 2026

U.S. Auto Retail M&A: Franchise Buyers, CarMax, and the Limits to Scale

Executive Bio

Executive Profile Hidden

Summary

Subscribe to access hundreds of interviews and primary research

Or contact sales for full access

Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

This is a snippet of the transcript.to get full access.

They don't keep it open because it could become overly competitive?

Exactly. Each manufacturer has a protected territory radius, and they won't place another dealership within that radius. This differs from used car dealerships. If I have Joe's Auto Sales, I might see Allen's Auto Sales across the street. But with a Ford dealership, there won't be another Ford dealership within a five-mile radius in most states. This is all dependent on brand and state. Each brand has its own rules, and each state has its own laws. It's quite complex.

This is a snippet of the transcript.to get full access.

Why is that the case?

Because there's standard pricing for parts and new vehicles, and all dealers in the network pay the same price, no matter where you are in the country or how many you're buying. So there's no economies of scale when it comes to purchasing new vehicles or more parts. So, really, your consolidation is about trying to consolidate your SG&A expenses and personnel. You're streamlining that more than anything because you can't change the price of parts or cars.

This is a snippet of the transcript.to get full access.

Free Sample of 50+ Interviews

Sign up to test our content quality with a free sample of 50+ interviews.

Or contact sales for full access

© 2024 In Practise. All rights reserved. This material is for informational purposes only and should not be considered as investment advice.