Dave Cantin Group

Jim Motavalli covered a big question in
Autoweek this week about whether Americans are still interested in trucks. He cited intelligence from last year’s DCG Market Outlook Report (MOR) showing "peak truck" is a U.S. economic trend to watch, as American consumers struggle with vehicle affordability. Today, this trend is accelerating.

The survey data from the MOR report recorded a 3 percent year-over-year decrease in truck-buying intent, alongside a 3 percent increase in intent to buy sedans. That data was collected before recent macroeconomic shocks, before the Strait of Hormuz got blockaded and prices soared.

For dealers and OEMs, understanding and getting ahead of this shift will be critical in the year ahead.

Read the full article here:

Are Americans Finally Getting Tired of Trucks? Peak truck may already be here as rising prices and fuel costs are pushing some buyers back toward sedans.

Must-read article by Sharon Terlap in Wall St. Journal. DCG calls this the New Retail Reality

• 1 million consumers have exited the new-car market due to soaring costs
• Automakers are not incentivized to cut prices to boost sales
• Dealers are facing unprecedented challenges

This is a tough environment. To survive, dealers will need to move beyond sales-driven models to build long-term value through operational efficiency and investing in customer retention.

What's your plan? DCG can help.

https://na2.hubs.ly/H05PrYB0

Tech investment in automotive is often long on promises before generating results. In Q1 2026, things changed dramatically.

The numbers are hard to ignore:
• Asbury's Tekion rollout delivered a 21% increase in gross dollars per technician and 16% improvement in service adviser productivity in a single month — with support costs down 5%.
• Group 1's virtual F&I now handles 7–10 deals per agent versus 3 in-store.
• AutoNation cited ~$5M in 2025 savings from AI deployed in service contact centers and back-office operations.
• Lithia's Pinewood.AI is explicitly framed as the path from mid-60s to mid-50s SG&A over time.

The results go beyond “testing out AI” to bona fide operating infrastructure — and they're starting to show up in how sophisticated buyers evaluate dealership groups.

The dealers best positioned for what's next aren't waiting to see how this plays out. The intersection of data, AI, and dealership value is closing in — and DCG is working at that intersection every day.

Contact DCG to discuss where your business stands today and what it means for your long-term value.

Learn MOR: https://na2.hubs.ly/H05HV4x0

Dave Cantin Group was proud to serve as a Gold Sponsor of the 32nd Ed Morse MDA Golf Classic, helping raise funds for the Muscular Dystrophy Association on May 8th, 2026, at the PGA National Resort in Palm Beach Gardens, FL.

DCG has supported this event in the past and was glad to be back with the Ed Morse team in support of MDA’s philanthropic work.

DCG team members Joe Beaver and Luke Murphy participated in the tournament, which also featured an awards luncheon, live and silent auction, and a cocktail reception.

DCG’s relationship with Ed Morse Automotive Group, currently ranked among the top 50 largest dealership groups in the country, extends well beyond this event. Our team has advised the group on major transactions, including its 2024 expansion in Arizona through the acquisition of seven franchised dealerships from Lawley Automotive Group in Sierra Vista, Arizona. DCG also advised the team on a Florida acquisition.

The Ed Morse MDA Golf Classic has become an important annual event for the industry, with past tournaments raising over $402,761 in a single year. Dave Cantin Group was honored to participate and continue supporting both the event and our longstanding collaboration with the Ed Morse team.

DCG's nonprofit initiative, DCG Giving, funds child and adolescent cancer research and treatment across the United States and supports other charitable causes important to the automotive retail community.

L-R: Tom Mila (AutoNation), Joe Beaver (Dave Cantin Group), Luke Murphy (Dave Cantin Group), Chris Huffman (Nova Automotive Group) at the PGA National Resort in Palm Beach Gardens, Florida.

The Publics are confident about their strategies. But the macro-economic and political environment is leaving everyone guessing.
• AutoNation pulled its 2026 outlook slide entirely.
• Asbury and Group 1 declined to issue any quantitative full-year EPS or EBITDA targets.
• Sonic held guidance — but with explicit second-half downside skew.

This isn't routine hedging. It's an unusually direct admission from the most analytically sophisticated operators in the business.

And it lands on top of an affordability picture that was already under pressure:
• Average monthly payments at $750
• Loan terms stretched to a record 84 months
• Consumer sentiment at its lowest level in recorded history

The variables driving consumer behavior: tariffs, interest rates, fuel prices, and purchasing confidence are all still in motion. What's visible in the data right now is not the full picture of what's coming.

But deals are still getting done. Capital is still being deployed. Uncertainty isn't a reason to pause — it's a reason to have a clearer strategy than everyone else.
Contact DCG to discuss what today's market signals mean for your dealership and your options.

Learn MOR: https://na2.hubs.ly/H05GQ2N0

Dave Cantin Group was proud to serve as a Gold Sponsor of the 32nd Ed Morse MDA Golf Classic, helping raise funds for the Muscular Dystrophy Association on May 8th, 2026, at the PGA National Resort in Palm Beach Gardens, FL.

DCG has supported this event in the past and was glad to be back with the Ed Morse team in support of MDA’s philanthropic work.

Dave Cantin Group was proud to serve as a Gold Sponsor of the 32nd Ed Morse MDA Golf Classic, helping raise funds for the Muscular Dystrophy Association on May 8th, 2026, at the PGA National Resort in Palm Beach Gardens, FL. In 2024 expansion in Arizona through the acquisition of seven franchised dealerships from Lawley Automotive Group in Sierra Vista, Arizona. DCG also advised the team on a Florida acquisition.

Dave Cantin Group was proud to serve as a Gold Sponsor of the 32nd Ed Morse MDA Golf Classic, helping raise funds for the Muscular Dystrophy Association on May 8th, 2026, at the PGA National Resort in Palm Beach Gardens, FL. In 2024 expansion in Arizona through the acquisition of seven franchised dealerships from Lawley Automotive Group in Sierra Vista, Arizona. DCG also advised the team on a Florida acquisition.

The Ed Morse MDA Golf Classic has become an important annual event for the industry, with past tournaments raising over $402,761 in a single year. Dave Cantin Group was honored to participate and continue supporting both the event and our longstanding collaboration with the Ed Morse team.
L-R: Tom Mila (AutoNation), Joe Beaver (Dave Cantin Group), Luke Murphy (Dave Cantin Group), Chris Huffman (Nova Automotive Group) at the PGA National Resort in Palm Beach Gardens, Florida.
Dave Cantin Group was proud to serve as a Gold Sponsor of the 32nd Ed Morse MDA Golf Classic, helping raise funds for the Muscular Dystrophy Association on May 8th, 2026, at the PGA National Resort in Palm Beach Gardens, FL.s 2024 expansion in Arizona through the acquisition of seven franchised dealerships from Lawley Automotive Group in Sierra Vista, Arizona. DCG also advised the team on a Florida acquisition.

The largest dealer groups in the country aren't waiting; they're running active M&A strategies year-round.

In Q1 alone, the Publics told a striking story:
• AutoNation deployed $300M on buybacks and zero on acquisitions — despite sitting on $1.6B of liquidity.
• Asbury divested 10 dealerships and terminated 7 franchises while deploying $147M to buybacks.
• Group 1 acquired ~$135M while divesting ~$570M.
• Lithia ran 55% of capital into buybacks vs. 25% to acquisitions — reversed from Q1 2024.
• Penske leaned in, deploying ~$2B in annualized revenue over six months in premium luxury and Toyota/Lexus.

Different actions. Same discipline.

Scale for scale's sake is no longer the thesis. Every dealer needs a strategy and a framework. Even if yours is “hold and optimize” — it’s still your plan. Better that you build it, before someone does it for you.

Contact DCG to discuss your M&A strategy for 2026.

Learn MOR: https://na2.hubs.ly/H05DW7x0

The big dealer groups are building businesses inside their business.

Captive finance and proprietary F&I platforms have evolved from incremental income streams into structural competitive moats — and the numbers are striking:

• AutoNation Finance generated $9M in Q1 profit alone, nearly matching all of 2025, with its portfolio up 68% year-over-year to $2.45B.

• Lithia's Driveway Finance Corporation posted income up 70% year-over-year to $21.3M, tracking toward ~$100M in 2026.

These platforms compound with scale. And the financing-cost advantage they create is something smaller groups simply cannot replicate organically.

The gap is real — and it's widening every quarter. The practical question for every private operator is whether comparable capabilities can be built, acquired, or partnered into before the distance becomes permanent.

Swipe through for the full breakdown and visit our website to learn MOR: https://na2.hubs.ly/H05CHh30

Contact DCG to discuss what these market shifts mean for your dealership's value and long-term strategy.

The big public dealer groups are leaning into used. But if you look closer — their strategies couldn't be more different.

- Group 1 is only 11% auction-dependent.
- Lithia's customer-sourced units are generating $2,483 GPU versus $700–$800 from auction.
- Sonic's EchoPark is pulling nearly-new inventory directly from its franchise stores.
- Penske is holding firm at 33 days' supply, strictly 0-to-4-year-old vehicles.
- AutoNation is chasing the $40K+ segment while pulling back on sub-$20K units.

These are completely different bets on where used vehicle margin lives — and a preview of where potential competitive advantage lies for every dealer.

DCG welcomes the opportunity to discuss your used vehicle strategy and what it means for your performance and valuation.

Learn MOR: https://na2.hubs.ly/H05xr1f0



Sources: Q1 2026 public dealer group earnings presentations and filings; Dave Cantin Group Market Outlook Report, February 2026.

What percentage of your gross profit came from fixed ops and F&I last month? You might be leaving money on the table. The largest dealer groups are reorganizing their business models around the service drive:

• Roger Penske is publicly arguing for smaller showrooms and more bays.
• Group 1's fixed absorption is near 95%.
• Sonic broke $90M in a single month of fixed ops gross profit.

This is a story about the market’s direction. And it has real implications for how your dealership performs — and what it's worth.

Ready to take a closer look at your dealership's value in today's market? Contact DCG to get started.

Learn MOR: https://www.davecantingroup.com/market-outlook-report/

Sources: Q1 2026 public dealer group earnings presentations and filings; Dave Cantin Group Market Outlook Report, February 2026.

Truly great teams learn to collaborate, trust each other, and work effectively in a variety of challenging settings. Last week's retreat in Jackson Hole, WY, was a fantastic opportunity for the DCG team to strengthen our bonds and hone our collective skills. Workshops, 1:1s, meetings with inspiring entrepreneur Jesse Itzler, and lots of time outdoors helped us become better people and a trusted M&A advisory company. Stay tuned for more content from the event!