Automotive Dealers’ Market Expectations Fell Below Levels at the Start of the Pandemic

What do you expect the market for vehicles in your area to look like 3 months from now?

Automotive dealers’ market expectations fell below levels at the start of the pandemic according to Cox Automotive’s Dealer Sentiment Index.  Dealers are primarily concerned about the impact the state of the economy and interest rates will have on their business. As inventory levels and prices normalize, dealerships will likely no longer be able to charge the mark-ups that have driven increased profitability over the last year.  F&I products, which have historically accounted for about 25% of gross profit, are likely to become an increasing important source of revenue as dealerships focus on maximizing the profitability of each sale.