Market conditions in their area are strong, dealers say
A recent survey found that more franchised dealers feel market conditions are currently strong in their area than feel they are weak, with the overall sentiment scoring 55 out of 100. The dealers are somewhat more positive about the next three months, with an index of 57.
Cox Automotive surveyed 1,033 dealers, both franchised and independent, in the first week of August, for its new Dealer Sentiment Index. Only the franchised dealer scores are discussed here.
Customer traffic to franchised dealerships could be better, with the sentiment on that score at 42. Dealers have mixed views on their dealership profits (score of 50). They are fairly happy with the current new car sales environment (score of 57) but much happier with the used car sales environment, which scored 68. Dealers feel pressure to lower prices, with that question yielding a score of 67.
Asked about the top factors holding their business back, dealers list market conditions as Number 1, followed by competition, expenses, consumer confidence and staff turnover (those two were tied, each chosen by 20 percent of dealers).Download Bulletin PDF