Dealer, Consumer Sentiment Mixed

By Staff Writer June 18, 2020 154

Dealer and consumer sentiment showed volatility, lower levels of used inventory are being reported, but there are also opportunities for efficient new operational methods in the wake of the coronavirus. Those insights come from the Cox Automotive report, “COVID-19: Tracking U.S. Consumer and Automotive Dealer Sentiment.”

However, 33 percent of independents expect the market will be strong in three months and 78 percent are doing business beyond their physical location.

The report showed that while many consumers are returning to more daily activities, “many continue to delay automotive purchases and servicing.”

Twenty percent of consumers are comfortable returning to normal duties, while only 2 percent of consumers think things are back to normal.

Cox stated, “inventory shortfalls are starting to eat into the price discounts that dealers had previously been offering.”

As of mid-June, the report showed 41 percent of consumers are delaying car purchases for up to two months, while 43 percent are delaying purchases three to six months.

Factors in those delays include unemployment concerns, worries about recent civil unrest, potential for a second wave of coronavirus and general uncertainty in the market.
About 62 percent of independent dealers feel inventory levels are too low, while 34 percent feel levels are “just right.”

The survey showed 47 percent of independent dealers have lowered retail prices as a result of the coronavirus.

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Last modified on Friday, 19 June 2020 13:41

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