Q2 2025 Cox Automotive Dealer Sentiment Index Analysis

The document is a report detailing the Q2 2025 Cox Automotive Dealer Sentiment Index (CADSI), which presents a mixed outlook among franchised and independent dealers regarding market conditions. The survey, conducted in late April and early May, indicates that while franchised dealers report improved sales and traffic, there are widespread concerns about future market stability. The overall market index stands at 42, reflecting a perception of weakness among dealers. The report highlights a significant drop in the market outlook index from 58 to 45, suggesting a pessimistic view of the upcoming months. Customer traffic has increased, particularly for franchised dealers, but profitability remains a concern, with independent dealers reporting weaker profits. The report also discusses inventory levels, noting a decline in both new and used vehicle inventories, which has lessened price pressure. Additionally, it addresses the state of electric vehicle sales, which continue to face challenges despite some positive sentiment regarding tax credits. The economic landscape is described as mixed, with inflation and recession fears impacting dealer confidence.