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In today’s economic climate, consumers are grappling with extreme inflationary pressures affecting vehicle ownership. Auto dealers are particularly impacted, facing challenges in vehicle availability and profitability. According to AAA, the average annual cost has surged by $1,454 to $12,182 per vehicle.
As the first quarter of 2025 ended, all was calm for used-vehicle retail prices. But, Cars Commerce reported in its Q1 2025 AutoMarket Review , that might have been the calm before the storm. An early indication might have come in the form of used-vehicle trade-in values, which in March rose 1.9% year-over-year.
automarket, the word that will likely sum up 2024 is “normalcy,” according to Cox Automotive’s Forecast: 2024. auto industry. “To name a few, we saw historic appreciation in vehicle values, unimagined drops in supply, and interest rates moving from all-time lows to 23-year highs at an unforgiving pace.
automarket, according to the Cox Automotive Dealer Sentiment Index (CADSI). The Q3 current market index was 45, still below the threshold of 50, indicating that more dealers see the current automarket as weak than see the market as strong. Overall dealer sentiment in the U.S.
The latest survey, conducted immediately following the national election in early November, indicates that, while current market conditions are still viewed as weak, dealers are increasingly optimistic about the future. This significant increase suggests that more dealers believe the automarket will be stronger in the next three months.
For franchised dealers, the profitability index has declined significantly from the first half of 2022, when the index was near a record high and above 80. Beginning in the second half of 2022, the index has dropped significantly and, in Q1 2024, hit 41 – the lowest point in the survey’s history excluding Q2 2020.
The index for the second quarter of 2024 was virtually unchanged from the previous quarter and has varied little since falling below 50 in late 2022 — but that level indicates a prevailing perception of a weak market. Overall, dealer sentiment is likely worse than actual market conditions,” Smoke said.
The venue will provide Cox Automotive the opportunity to demonstrate how it is working to change the way the world buys, sells, owns and uses vehicles. “We are excited to showcase the most complete and connected ecosystem in the auto industry at the NADA Show 2024, which is undoubtedly the auto industry’s event of the year.”
Auto dealers still don’t like the look of the current market for vehicles. The vehiclemarket in the U.S. is shifting from a seller’s market to a buyer’s market, and dealers are feeling the pinch of tighter margins and higher costs,” Cox Automotive chief economist Jonathan Smoke said.
While some of the technologies described below have yet to be embedded in vehicles, it’s important to know what’s on the horizon so dealers can conduct the right research and ensure they offer the right F&I programs to customers. 7 electric vehicles. of auto dealers said the sale of F&I products was up about 5-10%.
The Q2 current market index score of 42 indicates most U.S. auto dealers see the market as weak. The last time current market sentiment was above 50 — suggesting the market was strong, not weak — was Q2 2022. “Overall, dealer sentiment is likely worse than actual market conditions,” added Smoke.
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