Navigating a Changing Landscape

With shifting tariffs, evolving supply chains and growing consumer uncertainty, dealerships are being forced to navigate a landscape that changes almost daily. According to Jennifer Rafael, Vice President and Partner, Midwest USA at DSMA, the global leading automotive mergers and acquisitions (M&A) firm, “This moment isn’t just about reacting — it’s about strategically preparing for what’s next. Everyone’s focused on the immediate impacts of the market,” she explains. “But you really need to take into consideration the right go-forward approach for your business model. That includes evaluating what changes need to be made to adapt to what’s ahead.”

This is where DSMA comes in. As the top automotive M&A firm, DSMA provides full-service support for both buyers and sellers, offering expert valuations, strategic consulting and seamless end-to-end transaction management. With unmatched industry insight and a deep understanding of shifting market dynamics, DSMA empowers clients to navigate change with confidence. In this article, Jennifer shares key insights from her experience, offering valuable strategies to help those in the M&A space stay ahead in uncertain times.

Strategic Preparation and Forward‑Looking Valuations

Jennifer emphasizes that now is the best time for dealers to have their businesses evaluated. DSMA’s approach extends beyond analyzing current performance by projecting into the future. “Our valuations are comprehensive,” she states, “We assess past, present and future values, and run various pro-formas to show how things like tariffs will affect every department — from service and parts to sales. That kind of insight is crucial in a time like this.”

Understanding Tariff Impacts Across Departments

While much of the anxiety in the dealership space stems from tariffs, Jennifer notes that not all areas will feel the impact equally. “Tariffs won’t impact F&I that much,” she explains. “But they will significantly affect sales and fixed ops. What many dealers don’t realize is that tariffs are only being applied to future inventory. What’s currently sitting on the lot isn’t affected — yet. That gives dealers a brief window of opportunity to plan and act strategically.” She further reminds us that many U.S. vehicle brands rely on foreign-made parts, signaling that the effects of these tariffs will eventually be felt across the board.

Shifting Consumer Behavior and Recent Market Trends

Consumer behavior is notably shifting in response to market uncertainty. “Consumers don’t know what’s coming next,” Jennifer observes. “They’re cautious, but they’re out there — and that’s an opportunity for dealers who are prepared to meet them where they are, with the right messaging, pricing and inventory strategy.” Keep in mind, in the last 30 days, dealers have been busy as consumers, in fear of tariffs, have rushed to purchase vehicles. However, this pace is now slowing down due to confusion surrounding the tariffs.

Leveraging Industry Support and Strategic Alliances

For Chicagoland dealers, organizations such as the Chicago Automobile Trade Association (CATA) remain invaluable. Jennifer underscores that, while CATA’s influence on international trade policy might be limited, its role as a resource for timely, relevant information is more important than ever. “CATA is a great resource,” she says. “They’re doing their best to fight for dealers, and more importantly, they provide relevant, timely information. This is when dealers should really lean on what CATA offers.”

Adapting for Future Success

Jennifer’s advice to dealers is clear: “Don’t wait to adapt. Now is the time to gain a full understanding of your dealership’s value and future outlook. Evaluate your current position, strategize smartly, and stay ahead of the inevitable changes taking shape in the industry.”

Connect with DSMA’s Team

If you’re looking to buy, sell or receive a comprehensive dealership valuation, connect with Jennifer Rafael directly at jennifer.rafael@dsma.com or (312) 927-9561. For more information about DSMA’s full range of services, visit dsma.com.