Decisive election results and falling interest rates pushed Cox Automotive’s Dealer Sentiment Index into positive territory as a tumultuous 2024 draws to a close.

“The recent resolution of political uncertainty following the presidential election has cleared the path for a more optimistic outlook on future auto market conditions,” said Jonathan Smoke, chief economist at Cox Automotive. “Coupled with the potential for supportive measures such as tax rebates and the possibility of lower interest rates, dealers are feeling more hopeful about the road ahead as we move into 2025.”

The index is based on a survey U.S. franchised and independent auto dealers. The most recent survey was conducted starting one day after election day, with indices based on a neutral score of 50; 51 or above indicates a positive outlook. Among other highlights, analysts found:

• The market outlook index (looking ahead to Q4 2024) among the 498 franchised dealers surveyed improved to 60, up 30.4% from a year ago.
• The current market score (opining on Q3 2024) for franchised dealers ticked up from 49 to 50 year-over-year.
• The new-vehicle inventory index is 73, two points off the record high of 75 in Q1 and a 17.7% improvement from the year-ago quarter, indicating a sustained bullish outlook on mix and availability.

Read the full report at Cox Automotive