California has reasserted itself as one of the most consequential automotive retail markets in the United States. As the nation’s largest vehicle market, the state benefits from exceptional density, affluent consumers and a deeply embedded culture of mobility.

Greater clarity around CARB policy and long-term regulatory direction has restored buyer confidence. Capital is once again being deployed decisively across the state.

Premier import and luxury franchises in strong demographic corridors are commanding exceptional interest. Through our active engagements across California, we have observed valuations for top-tier assets increase approximately 20% from levels seen during peak regulatory uncertainty. Sophisticated buyers are underwriting long-term performance with conviction.

Many well-capitalized buyers paused in 2025 amid macroeconomic and regulatory uncertainty. With improved visibility today, buyer activity has accelerated meaningfully. Sellers of high-quality, well-positioned assets are entering the market with confidence and achieving compelling results.

I recently had the privilege of advising on the sales of Santa Monica BMW and Acura of Fremont. In both engagements, a disciplined and confidential process led to strong outcomes for our clients. We currently have multiple additional California transactions progressing forward with active buyer interest across several franchise brands:

• Sonic Automotive became the largest Jaguar Land Rover retail ownership group in the United States by volume following acquisitions across Los Angeles, Newport Beach, San Jose and Pasadena.
• Lithia & Driveway expanded in Orange County and added Porsche Beverly Hills and Santa Monica Audi in one of the country’s most affluent luxury corridors.
• Penske Automotive Group strengthened its California presence through acquisitions, including Longo Toyota and Longo Lexus in El Monte and Lexus of Stevens Creek in San Jose.
• Franchise Equity Partners entered the state through a minority investment in SoCal Penske Dealer Group, while Go Auto expanded into Southern California through Sunrise Ford acquisitions.

These transactions reflect sustained strategic conviction in the durability and scale of California’s automotive economy. 

California remains complex. The sustained advocacy of organizations such as the New Car Dealers Association of San Diego and the Greater Los Angeles New Car Dealers Association has contributed meaningfully to regulatory visibility and supported dealership values statewide.

For owners evaluating strategic alternatives, I welcome a confidential conversation. Contact me at jayson@haigpartners.com.