Auto Shoppers Expect Election to Impact Economy

By Staff Writer July 01, 2024 809
Independent auto dealers are slightly less concerned about the political climate, as they prioritize Expenses (No. 4) and Credit Availability (No. 5). For independent dealers, Political Climate ranks No. 6, at 34%, up one percentage point from Q1.  At 41%, Political Climate is now ranked No. 3 on the list of top 10 factors affecting business across sectors. Independent auto dealers are slightly less concerned about the political climate, as they prioritize Expenses (No. 4) and Credit Availability (No. 5). For independent dealers, Political Climate ranks No. 6, at 34%, up one percentage point from Q1. At 41%, Political Climate is now ranked No. 3 on the list of top 10 factors affecting business across sectors.

New research by Cox Automotive, the world’s largest automotive services and technology provider, reveals that nearly 75% of automobile shoppers in the market for a vehicle expect the outcome of the U.S. presidential election in November to impact the economy.

The findings underscore a high level of uncertainty in the auto market – across both major political parties and among dealers and shoppers – caused partly by expectations that the November election will reshape the economy, change interest rates, or impact inflation.

Vanessa Ton.

Due to the anticipation of future changes, many shoppers may be adopting a wait-and-see attitude, choosing to stay on the sidelines until a more certain economic direction is established.

“If shoppers believe interest rates will be lower in the future, or that the economy will be improving – or worsening – post-election, they are more likely to stay on the sidelines, waiting for the dust to settle,” said Vanessa Ton, senior manager, Research and Market Intelligence, Cox Automotive. “This new research reminds us that elections breed uncertainty, and when big-ticket purchases like automobiles are on the line, uncertainty is the enemy.”

The key takeaways from the study include:

  1. Nearly 3 in 4 consumers expect the upcoming U.S. presidential election to impact the economy.
  2. A notable 66% of consumers and 82% of dealers feel the outcome of the election will affect interest rates.
  3. Inflation is the No. 1 concern among shoppers, with 74% of consumers and 81% of dealers believing the next election will influence it.
  4. According to 60% of consumers, the November election will affect their next vehicle purchase.
  5. Most consumers feel the election will not impact their powertrain decisions; the majority are opposed to government mandates on electric vehicles.

 

Dealers are More Likely Than Consumers to Believe the November Election Will Impact the Auto Industry

The study – Automotive Shopping and a National Election: A Season of Uncertainty – was conducted in February and includes interviews with more than 500 in-market vehicle shoppers. Of the respondents, 91% were likely to vote in the coming election. Additionally, in late April and early May, 1,026 new and used automobile dealers across the U.S. were surveyed.

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Last modified on Tuesday, 09 July 2024 09:52