By Jonah Gjertson, Senior Consultant at Blue & Co.
Why has the Midwest seen a consistent appetite for dealership investment? According to the Bank of America Institute’s Regional Roundup report, The Midwest has long been viewed as an affordable region within the United States and has recently experienced wage increases that continue to bolster discretionary spending. Additionally, the region has not felt the same level of CPI growth as the Northeast and West regions, while remaining higher than the South.
The Midwest has also experienced a notable increase in after-tax wage and salary growth over the past two years, rising to around 2.5 percent year-over-year. This combination of rising after-tax wages, a lesser impact from inflation, and increased discretionary spending creates an attractive opportunity for automotive dealers. As the average transaction price for new vehicles continues to hover around $50,000, dealers rely on their surrounding populations to benefit from these economic trends.
Final Thoughts
The Midwest’s attractiveness for dealership transactions is supported by healthy economic indicators such as wage growth and lower relative CPI growth, and high discretionary spending. With a steady stream of buy/sell activity, the region demonstrates resilience and adaptability in an evolving industry. As consolidation continues, Indiana, along with the broader Midwest, remains an appealing location for buyers in the automotive market.
Questions? We’re Here to Help.
If you are wondering how the current automotive buy/sell activity may affect the value of your business, don’t navigate these questions alone. Reach out to your local Blue & Co. advisor to explore how these updates affect your business and how we can help you prepare.
About Us
Jonah Gjertson, Senior Consultant with Blue & Co., is a seasoned professional with a background in corporate development and business valuation. From 2022 to 2025, he served as a Corporate Development Analyst at Gee Automotive Companies, where he contributed to strategic growth initiatives within the retail automotive sector. His experience spans equity evaluation, financial modeling, and strategic consulting, and he has been praised for his analytical rigor and collaborative leadership in both academic and professional settings.
