The Q4 2024 Cox Automotive Dealer Sentiment Index (CADSI) highlights a surge in optimism among U.S. auto dealers following November’s election results.
While dealers still perceive current market conditions as weak, the market outlook index rose significantly from a rating of 42 in Q3 to 54 in Q4, signaling improved expectations for early 2025.
Jonathan Smoke, Chief Economist at Cox Automotive, attributes the optimism to reduced political uncertainty and potential supportive measures, including tax rebates and lower interest rates. Despite these gains, the current market index remains low at 42, reflecting ongoing challenges.
Franchised dealers displayed higher optimism compared to independent dealers. Meanwhile, customer traffic remains weak, although digital traffic has shown marginal improvement.
The CADSI survey, conducted with 933 U.S. dealers, underscores growing dealer confidence tempered by persistent economic concerns and evolving market dynamics.
