Dealers who responded to Cox Automotive’s Dealer Sentiment Index survey reported heavy traffic and strong sales offset by concerns relating to the economy and tightening inventories.

Cox’s profit index hit its highest mark (39) in more than a year, with franchised dealers (52) outpacing independent dealers (35). The customer traffic index improved to 37 from 33 in the prior quarter, driven by a 10-point increase in in-person visits to franchised dealerships.

But Cox’s market outlook index fell from 58 in Q1 to 45 in Q2, indicating a reversal from a majority-optimistic to majority-pessimistic view of the next three months. The U.S. economy was the most frequently cited concern, followed by “political climate” and tariffs on imported vehicles and parts.

“Dealers have a front-line view of the U.S. auto market, which appears to be at an inflection point,” writes Cox’s chief economist, Jonathan Smoke, in a release. “The recent sales pace has been a positive, lifting current market sentiment higher for franchised dealers. But as we’ve said before, 2025 is going to be a roller coaster for this industry, and the market could be a lot more hair-raising in the months ahead.”

Read more at Cox Automotive