Automotive Market Uncertainty Fuels Dealer Pessimism

A public survey of automotive dealer sentiment for Q2  2024 reveals a stable yet cautious outlook among auto dealers. Despite concerns stemming from a weaker-than-expected tax refund season and ongoing political and economic uncertainties, some positive indicators emerge, such as a slight increase in profit perceptions and improvements in customer traffic. However, rising costs and persistent price pressures pose challenges to dealers, alongside a mixed outlook for new and used vehicle sales. The sentiment regarding electric vehicle sales continues to decline, reflecting worsening perceptions in that segment. Concerns about the political climate, particularly as the U.S. presidential election approaches, further contribute to market uncertainty.