Each quarter, the Cox Automotive Industry Insights team surveys U.S. automobile dealers, both franchised and independent, in an effort to measure how they are feeling about the auto business and vehicle sales, both new and used. It's called the Cox Automotive Dealer Sentiment Index (CADSI) and it focuses on both current market conditions and prospects for the coming three months.
In Their research, Cox found that a large majority of dealers are nervous for summer sales. The optimism found in the first quarter, is no longer there.
Cox Automotive Chief Economist Jonathan Smoke says it's one of the main take aways from the quarter 2 survey, "The biggest concern coming from this quarter’s survey is that expectations for the market moving into the summer have diminished substantially."
In Q1, 70 percent of dealers were extremely optimistic about future months, now only 56 percent of dealers feel that way.
So what is holding dealers back from thinking positively about the future months? Well there are a few reasons.
The good news, however, is that current (Q2) market attitude is fairly positive.
What are your thoughts on Q2, and feelings coming into Q3?