Q1 2026 Wholesale Trends Report

In this edition of the report, PSXLink, the OEC business intelligence platform, analyzed sales trends and results from sales invoice data from 1,500+ dealers. This data features the following timeframes:

• Year-over-year performance comparison between April 2024-March 2025 (prior period) and April 2025-March 2026 (current period)
• Q1 comparisons reflect January-March 2025 (prior period) and January-March 2026 (current period)

The mechanical wholesale market experienced consistent growth over the past 12 months. This trend is supported by reliable and recurring activities that continue to drive demand for parts and repairs, such as brakes, suspension, and batteries. Several factors influencing these trends include:

• Aging vehicles (and rising vehicle mileage) that sustain repair and maintenance demand
• Consumers choosing to repair rather than replace vehicles
• Growth remains positive for All Dealers and Top 100 Dealers (though margin pressure warrants attention)

Over the past 12 months, All Dealers produced a monthly net sales increase of 3.1% while Top 100 Dealers grew 2.4%. At the same time, gross profit margins compressed slightly for both dealer segments while return rates improved, suggesting increased order accuracy and more efficient inventory management.

Current period: April 25 - March 26 | Prior period: April 24 - March 25

KEY METRICS:

• Average monthly net sales increased to $299K for All Dealers (+3.1% up from $290K) and Top 100 Dealers increased to $2.02M (+2.4% up from $1.97M).
• Gross Profit Margin dropped -42 bps for All Dealers and -67 bps for Top 100 Dealers, indicating greater compression for high-volume dealers, likely reflecting competitive pricing to support larger shop relationships.
• Return Rate improved for both segments (-36 bps for All Dealers and -12 bps for Top 100 Dealers), an operational gain that reflects reduced supply chain friction and more efficient inventory.

Results in Q1 2026 aligned with the full-year trends, showing All Dealers monthly net sales growing by 4.0%, the strongest reading across all measured timeframes. Top 100 Dealers also grew monthly net sales by 2.6%. That said, gross profit margins did compress slightly, remaining consistent with the full year. Return rates differed by segment, improving for All Dealers while ticking up slightly for Top 100 Dealers.

Current period: January-March 2026 | Prior period: January-March 2025

KEY METRICS:

• All Dealer net sales growth accelerated by 4.0% in the 2026 quarter. This is the strongest reading across measured timeframes.
• Return rate improved meaningfully with a -57 bps drop for All Dealers. Top 100 Dealers experienced a modest uptick of +17 bps, suggesting reduced ordering discipline for high-volume accounts.
• Gross profit percentage compression remained consistent with a -38 bps decrease for All Dealers and -44 bps decrease for Top 100 Dealers, signalling that the margin environment, while not recovering, has stabilized.

The collision parts wholesale market faced a second consecutive year of volume pressure, driven by fewer repairable claims and rising total loss frequency, impacting parts sales even as vehicle and repair complexity continue to increase. The Top 100 Dealers showed some resilience, while All Dealers’ performance reflected the challenges expected within the current operating environment.

Current period: April 25 - March 26 | Prior period: April 24 - March 25

KEY METRICS:

• Average monthly net sales increased to $2.05M for the Top 100 Dealers (+1.9% up from $2.01M); the All-Dealer segment decreased to $284K (a -1.2% drop from $288K).
• Gross Profit Margin dropped -114 bps for All Dealers and -92 bps for Top 100 Dealers, reflecting unabsorbed pricing pressures.
• Return Rate delivered a positive signal indicating more precise ordering and stronger shop relationship management (-103 bps for All Dealers and -97 bps for Top 100 Dealers).

Despite the challenging environment, Q1 2026 did show some encouraging but cautious signs for the collision parts wholesale market. While net sales declined at the same rate as the full year, margin compression narrowed significantly. This suggests that the most acute pricing pressures may be easing. Additionally, return rates continued along a positive trajectory.

Current period: January-March 2026 | Prior period: January-March 2025

KEY METRICS:

• Average Monthly Net Sales increased to $2.12M for Top 100 Dealers (+0.8% up from $2.10M); All Dealers did decrease to $292K (-1.2% from $296K).
• Gross Profit Margin dropped -54 bps for All Dealers and -27 bps for Top 100 Dealers, showing margin resilience among Top 100 Dealers.
• Return Rate continued to improve consistently across all measured segments (-104 bps for All Dealers and -81 bps for Top 100 Dealers).

In 2025 and into 2026, RepairLink and CollisionLink both saw year-over-year growth in Q1 part sales. RepairLink experienced a 24% increase in mechanical parts sales, a notable improvement given that 49% of shops believe customers are more cost conscious*.

The upward parts sales trend may reflect the increase in vehicle repair complexity as well as 9% growth in the RepairLink mechanical shop network over the last year**. The growing shop network highlights a behavioural change as shops continue to move to online ordering, shifting orders previously managed over the phone to the online platform. RepairLink provides these shops with competitively priced OEM parts, rebates, and cart promos – all available on the parts they need to provide high-quality repairs for cost-conscious customers.

Similarly, CollisionLink saw a 9% increase in collision part sales compared to Q1 2025. This performance is likely driven by growing repair complexity as well as the CollisionLink shop network growing by 4.8% over the last year **. Once again, this shows an increase in online activity for dealers, which likely signals an increase in dealer reimbursements for program-eligible parts – money the dealers would not otherwise receive when processing orders manually or over the phone.

Likewise, both mechanical and collision parts order volume experienced strong year-over-year growth in Q1 2026. Mechanical parts order volume increased more than 16%, driven by factors such as rising average vehicle age, expanding OE parts promotions and rebates programs, and the growing RepairLink network, which includes additional opportunities to leverage parts programs. Collision parts order volume also grew by 15.5% YoY. This segment’s growth, like the mechanical segment, can be tied to the growing CollisionLink network and parts programs as well as OEM repair and certification requirements.

Whether it’s collision or mechanical parts, the dealership parts wholesale market has always presented challenges. From backorders to supply chain issues, rapidly evolving technology to economic factors, the market is complex and never short on obstacles. Recent trends and year-over-year comparisons confirm this reality as both part segments continue to navigate margin compression and pricing pressures. That said, the data also shows two market segments that are both navigating their own unique challenges and paths forward:

Despite the challenging environment, RepairLink and CollisionLink both experienced double-digit order volume growth in Q1 2026. This is likely the result of each platform’s consistently growing shop networks and expanded OEM parts programs. These programs incentivize shops to order genuine parts while also providing participating dealers with manufacturer-backed reimbursements. Dealers participating in these programs are better positioned to capture demand, defend their margins, and establish strong shop relationships. Dealers that are not currently enrolled in RepairLink or CollisionLink are leaving money on the table and missing out on OEM reimbursement dollars.

¹ Gross Profit figures are sourced directly from dealer DMS data and reflect cost of goods as recorded by each dealer. These figures are not adjusted for PMA reimbursements, unless the individual dealer has made that adjustment in their own DMS.

Report sourcing: PSXLink Sales Invoice data from Dealer Management Systems. Analysis based on a balanced panel of over 1,500 dealers with Net Sales >$0 in all 24 months (Apr 2024–Mar 2026), present in both PSXLink DMS and Reimbursement Impact datasets.

*2025 OEC Mechanical Shop Survey

**RepairLink and CollisionLink shop network growth percentages represent both US and Canada