- A new survey finds car dealers are worried their next three months will be challenging
- Knowing how the dealer feels can inform your negotiations
It’s a rough time to be selling cars. America’s car dealers don’t feel great about the current market, and they don’t think it’s going to get better anytime soon.
Kelley Blue Book’s parent company, Cox Automotive, surveys dealers quarterly about their perspective on their industry. The results can help shoppers determine when to shop and how to negotiate.
If you know the dealer across the table expects plenty of interested buyers each day, you know you have limited negotiating power. If you know they’re nervous that, if you walk away, they may not see another interested buyer right away, you may have more wiggle room.
Right now, they’re worried about the current market and very worried about the short-term future market.
About the Survey
- Researchers interviewed 977 car dealers and converted their insights into scores
For its second-quarter survey, Cox Automotive interviewed 977 dealerships: 496 associated with a larger franchise and 481 independent.
Researchers convert dealer answers into numerical values. A score of 50 is neutral. Scores above 50 indicate optimism, and scores below 50 show doubts.
Not Great Now, Worse in the Fall
- Dealers are negative on nearly every aspect of their business
- They’re worried about the emerging economic outlook
Dealers scored current market conditions at 42, down from 44 last quarter. Franchised dealers were more positive, with a score of 56. Those working at a standalone dealership scored just 37.
Everyone, however, is worried about the fall.
Last quarter, they rated their expectations for the next three months at 58. This time, the near-future scored just 45.
Profit expectations were low, scoring just 39. Remarkably, that’s a slight improvement from the first quarter. Few car dealers have seen much to feel great about in 2025.
In the wake of new tariffs, dealers are worried about having enough cars to sell. They scored their confidence in new car inventory levels at a neutral 50, and used car levels at a pessimistic 41.
Their biggest worries? Fifty-one percent said they thought the current economy was holding back business. Interest rates were their second-biggest worry, cited by 42% of respondents. Market conditions placed third, while the tense political climate and shifting tariffs rounded out their top five concerns.
