# Legal Herald: Auto Business Sales

> How dealerships, used car lots and body and repair shops are valued and sold: blue sky, floor plan payoffs, manufacturer approval and licensing.

Website: https://auto-business-sales.legalherald.com/
Part of: [Legal Herald](https://legalherald.com/llms.txt)
Last Updated: 2026-11-06

## Guide
- [Selling an Auto Dealership or Repair Shop: Value and Approvals](https://auto-business-sales.legalherald.com/)

## FAQ

### What is blue sky in a car dealership sale?
Blue sky is the price a buyer pays above the value of the hard assets, mainly for the franchise rights and the earning power of the store. It is usually quoted as a multiple of adjusted pretax earnings, and the multiple depends heavily on the brand. Parts, new vehicles, used vehicles and real estate are priced separately.

### Can a car manufacturer block the sale of my dealership?
Franchise agreements require the manufacturer's consent to a transfer, but most state dealer franchise laws say that consent cannot be unreasonably withheld and set a deadline for the manufacturer to respond. Some states also limit when a manufacturer can use a right of first refusal to substitute its own buyer. The rules vary by state, so have a dealer lawyer read both your agreement and your state statute.

### Can I transfer my used car dealer license to the buyer?
Usually not. Most states treat a dealer license as personal to the licensee, so the buyer applies for a new license and posts its own surety bond before it can sell vehicles. Plan the timing so the buyer's license is approved before closing.

### How are auto repair and body shops valued?
Independent repair and collision shops are usually priced as a multiple of seller's discretionary earnings (SDE) or EBITDA, like other small service businesses. Buyers pay more for shops with steady insurer referral programs, certified technicians, modern equipment and a lease the buyer can keep.

### What happens to my floor plan line when I sell?
The floor plan lender is paid off at closing from the purchase price, usually after a final inventory count. The buyer brings its own floor plan financing. Any vehicles sold out of trust or missing from the count come out of the seller's proceeds.

## Policies
- [Sponsored content policy](https://legalherald.com/sponsored-content-policy/)
- [Editorial standards](https://legalherald.com/editorial-standards/)