The results of the second AADA and Cox Automotive Dealer Sentiment Index survey are in with Dealers reporting that market conditions remain challenging. The latest survey conducted from 14 March to 14 April 2019, is based on the responses of 115 Dealers.
Given the flow on effect of recent regulatory reforms and tightening of the credit market, it is perhaps not surprising that the outlook held by Dealers is less optimistic than was evidenced in the previous survey, conducted in August 2018.
Dealers report that their three main areas of concern remain consumer confidence, market conditions and margin compression. On a more positive note, new vehicle inventory is strong, and Dealers expect to see some improvements in the market over the next six months.
Despite the depressed outlook, it is encouraging to hear comments from Dealers more recently that with the election out of the way, they are experiencing far more favourable trading conditions. This is consistent with reports coming in from the real estate market which is seeing an upturn in auction clearance rates in Melbourne and Sydney, while the CBA is experiencing a surge in home loan applications, following the Federal Election.