Economy, interest rates sour dealer views on market, survey finds

Franchise dealer views of the current market dropped from 62 in Q3 to 52 in Q4. The Independent also saw a quarter-on-quarter decline in current market sentiment, with an industry-wide rating of 43, marking the second consecutive quarter of negative sentiment.

smoke said car news Dealers did not expect future markets to be any worse than the current ones in Cox’s research from 2017 to the COVID-19 pandemic. Since then it has happened several times. He said he feels it highlights dealer uncertainty.

“Uncertainty is mostly about things that are completely out of control and the lack of prospects for relief,” he said. This is especially true for factors such as the economy and interest rates, he added.

Interest rates and the economy topped the list of factors franchise dealers told Cox were holding back business, with inventory issues dropping to third place.

58% of these dealers said interest rates were an issue. That’s up from his 40% in Q3 2021 and just 2% in Q4. Eighteen percent of dealers say the availability of consumer credit is a problem, up from 10%. in the third quarter of this year.

A Chevrolet dealer told Cox, “Rising interest rates are killing the auto market. This is exactly what the Fed wants.

The Federal Reserve (Fed) has increased its benchmark interest rate target range from 0-0.25% at the beginning of the year to 3.75-4% today. These changes could have knock-on effects on auto rates.

Fifty-seven percent of franchise dealers say the economy is a concern, up from 47% in Q3.

“Customers have no idea how bad the economy will be in the months and years to come, so they have to be hesitant to buy a car now.

This article was optimized by the SEO Team at Clickworks SEO

Source link