The Q4 2025 Cox Automotive Dealer Sentiment Index (CADSI) shows the current market index falling -5 pts to 38 (from 43 in Q3), with the future outlook down -4 pts to 42, underscoring a broad deterioration in dealer sentiment heading into year-end.

• Customer traffic weakened sharply, with the overall index dropping to 31 and both in-person (29) and digital (40) traffic reaching record lows for franchised dealers, indicating a significant pullback in shopper activity across channels.

• Profitability sentiment slipped to 36 overall, with franchised dealers at 44 and independents at 33, reflecting continued margin compression from rising costs and soft demand; independents showed the most pronounced pressure.

• The sales environment softened as new vehicle sales sentiment dipped to 49 and used vehicle sales to 42; franchised dealers held relatively better at 49 (new) and 53 (used), while independent dealers reported especially weak used sales at 39.

• Inventory conditions showed mixed dynamics: new vehicle inventory edged up to 59, signaling improving availability for franchised dealers, while used vehicle inventory remained tight at 43 overall and 41 for independents.

• Economic sentiment declined to 39 (from 43 in Q3), with franchised dealers at 44 and independents at 37, demonstrating broad concern about macroeconomic headwinds.

• EV sentiment deteriorated sharply, with franchised dealers’ future EV sales sentiment plunging to 24 (from 33) and EV leasing sentiment dropping to 27 (from 36), reflecting heightened uncertainty tied to expiring tax credits and weaker confidence in the segment.

• The report notes that after tariff-driven strength in Q2 and an EV surge in Q3, Q4 marked a clear slowdown, though improving consumer confidence and easing auto loan rates could help sentiment stabilize in early 2026.