The coming Spring season is helping to boost U.S. automotive dealer sentiment despite weaker profits and growing costs, according to a recent update from Cox Automotive.
Its Q1 2025 Cox Automotive Dealer Sentiment Index (CADSI) reveals that dealers’ view of current market conditions is up to 44 in Q1 2025 from an index score of 42 in Q4 2024. The company conducted its survey in late January and early February, with the results pointing to an upward shift in dealer sentiment.
“Certainly, a theme that continues through all of the findings is that the first quarter is better than a year ago for sure,” said Jonathan Smoke, Chief Economist at Cox Automotive, in a statement. “Even though we have some risks about the future, and it’s not exactly a straightforward bet for improvement by dealers, the sentiment at the time of this survey was certainly more positive than it was a year ago.”
However, even as the index score of 44 is up year-over-year, it is also below the 50 threshold. This indicates that more dealers view the market as weak instead of strong. Cox Automotive’s breakdown shows franchised dealers had a positive outlook with a score of 54 — up from the Q1 index score of 50 from last quarter and 49 a year ago. Independent dealers had a score of 42, although this was higher than last quarter and last year.
“At the time of this survey, U.S. automobile dealers were feeling pretty good about the market,” said Smoke. “A combination of positive factors has been working in the dealers’ favour –- inventory is healthy, and consumers have some urgency to buy. At least as we head into spring, conditions are favourable.”
But Smoke added that they also have to consider the U.S. administration’s current and shifting tariff stance, noting “how long this momentum will last is unclear.”
