Cox Automotive’s Q4 Automotive Dealer Sentiment Index finds dwindling optimism toward the U.S. economy and auto retail market as escalating costs, prices and uncertainty affect profits and consumer confidence.

“Compared to the rest of the year, the current market feels like it’s running out of gas. As we look ahead at 2026, renewed market momentum is entirely possible, especially if we get material interest-rate relief and a rebound in consumer confidence,” writes Deputy Chief Economist Mark Strand in a release.

The Market Index fell from 43 in Q3 to 38 in the current quarter. Franchised dealers (47) are more optimistic than independent dealers (35), but both fell below Cox’s “positive” 50-point benchmark. Overall profit sentiment declined to 36, with an 11-point disparity between franchised (44) and independent (33) dealers.

Sales sentiment for new (49) and used (42) units also declined, particularly when it comes to electric vehicles: EV sales sentiment fell from 33 in Q3 to 24 in Q4 and EV lease sentiment fell from 36 to 27.

Read the full report at Cox Automotive