Cox: Dealer Sentiment Falls

By Staff Writer June 09, 2020 259

According to the Q2 2020 Cox Automotive Dealer Sentiment Index taken in late April and early May, U.S. auto dealers’ view of the current automotive market remains negative and is understandably far more negative than in the first quarter. 

With an index score of 20, the rating shows the devastating impact COVID-19 on the auto industry, and the decrease from Q1’s index score of 49 is statistically significant. Year over year, the current market index is down by 29 points, which is also statistically significant and remains below 50, indicating more dealers view conditions as weak rather than strong.

As the CADS Index has consistently demonstrated, the current market sentiment skews more positive for franchised dealers compared to independent dealers, who sell only used vehicles. The gap narrows this quarter, however, with both franchised and independent dealers markedly negative about current market conditions. Franchised dealers decreased from 55 in Q1 to 30 in Q2 while independents are even more negative at 17, down 23 points from Q1. In the survey, 54 percent of independent dealers stated that staying in business is their top priority with no other priorities even coming close.

Consistent with declining views of the market, used-vehicle sales also significantly decreased in Q2 compared to last quarter. The view from independent dealers represents a decline in used-vehicle sales perception from last quarter and year over year with the used vehicle index at 20 in Q2. The used-vehicle sales index is also significantly lower from Q1 to Q2 for franchised dealers, moving from 72 to 43. This is the first time that franchised dealers perceived used-vehicle sales as weak. The used-vehicle inventory index also declined compared to last quarter and year, coming in at 31, which means that both franchised and independent dealers consider used inventory to be declining.

Rate this item
(1 Vote)
Last modified on Wednesday, 10 June 2020 14:14

Trending News

FCA: Sales Rebound in May, June

FCA: Sales Rebound in May, June

Jul 02, 2020 Rate: 5.00

New-Car Prices Jump

New-Car Prices Jump

Jul 02, 2020 Rate: 0.00

Hyundai Retail Tops Fleet

Hyundai Retail Tops Fleet

Jul 02, 2020 Rate: 0.00