When buying an existing dealership, you pay a premium above the physical assets called "Blue Sky." This represents the brand's reputation and future profit potential.
Buying a car dealership is one of the most capital-intensive retail investments, with total costs ranging from for small used-car lots to over $50 million for major metropolitan franchised stores . For an existing franchised dealership, the price is generally determined by a formula of (Normalized Earnings × Blue Sky Multiple) + Net Assets . 1. The "Blue Sky" Value (Goodwill) how much is it to buy a car dealership
The average blue sky value for publicly owned dealerships reached $21.8 million in mid-2025. When buying an existing dealership, you pay a