U.S. auto dealers became less confident about market conditions in the third quarter as affordability pressures continued to influence vehicle demand, according to Cox Automotive’s Q3 2026 Dealer Sentiment Index.
The survey of 929 franchised and independent U.S. dealers, conducted from July 22 to Aug. 5, put the current market index at 41, below the long-term third-quarter score of 48. The future market index fell to 46, compared with a long-term score of 49. Scores above 50 indicate more dealers view conditions as strong rather than weak.
Customer traffic also weakened, with an index score of 34, while profit sentiment improved modestly to 39. And new-vehicle sales represented one of the weaker areas. The index fell to 50, compared with a long-term third-quarter score of 55. Used-vehicle sales registered 43. Affordability emerged repeatedly in dealer responses, with dealers reporting stronger interest in lower-priced vehicles and continued difficulty sourcing affordable used inventory.
“Not enough affordable vehicles. Not enough under $20,000 that aren’t total junk or need lots of work,” one Chevrolet dealer told Cox Automotive.
Inventory offered some signs of stabilization. New-vehicle inventory registered 54, while used inventory improved to 43. Sentiment toward battery-electric vehicle sales also improved during the quarter, reaching 41, although it remained below the long-term third-quarter score of 46.
The economy remained dealers’ most frequently cited factor holding back business, identified by 54 per cent of respondents. Market conditions followed at 42 per cent, interest rates at 34 per cent and expenses at 33 per cent.
