Requested what elements harmed their enterprise, 61 p.c of dealerships cited rates of interest, up one level from the primary quarter of 2023 and 45 factors from the primary quarter of 2022, when stock was dealerships’ No. 1 concern.

“We’re really seeing franchises grow to be extra damaging about rates of interest,” Smoke stated.

The economic system was the No. 2 most typical hindrance, shared by 49 p.c of franchise sellers, in contrast with 50 p.c within the first quarter and 38 p.c within the second quarter of 2022. A scarcity of stock remained the No. 3 issue, an issue for 42 p.c of dealerships in the course of the second quarter — the identical as 1 / 4 earlier however down from 67 p.c within the second quarters of each 2022 and 2021.

“The market situations at present don’t profit the patron,” a Nissan seller within the South informed Cox. “Between rates of interest and the shortage of credit score availability, individuals simply should not have the power to buy and afford a automobile.”

Sellers scored new-vehicle stock as a robust 60 on the Cox index, down from 63 within the first quarter however above another time because the COVID-19 pandemic actually began to have an effect on the U.S. within the second quarter of 2020. That determine additionally was above among the quarters earlier than then as properly. Sentiment about new-vehicle stock combine additionally improved from a rating of fifty within the first quarter of 2023 to 53 within the second quarter.