Fewer than half (48%) of U.S. dealers are optimistic about the auto retail market in Cox Automotive’s first quarter Dealer Sentiment Index report, up from 38% in Q4 2025, but expectations for the spring are notably higher at 56% (up from 42%).

Analysts say the promise of stronger demand, lower interest rates and higher consumer confidence has dealers looking forward to a stronger Q2.

“Our dealer sentiment index got its typical ‘spring bounce’ in Q1. While current market conditions are still challenging, the sharp improvement in outlook reflects growing hope for a stronger spring selling season,” writes Cox Automotive’s deputy chief economist, Mark Strand, in a release. “Dealers are looking for relief from interest rates, a good spring selling season and a pickup in consumer confidence to help turn that optimism into sustained momentum.”

Read the full report at Cox Automotive