Experts Say the Presidential Election Will Impact Car Sales Big-Time
The new car market ebbs and flows with factors like interest rates, personal finances, and supply. However, there are a few factors that dealers expect will impact nationwide car sales more than the availability of credit or limited inventory. And with a contentious presidential election on the horizon, the car-buying landscape might take a hit from the political climate.
The upcoming presidential election may have a marked impact on car sales nationwide
According to Cox Automotive, “political climate” accounted for the No. 4 top factor holding back business in the auto industry. Specifically, the political boogeyman stirred 36% of dealers, up from 33% in the first quarter of 2024 and 29% in Q2 of last year.
In a slide ominously subtitled “Change is coming, paralysis ensues,” dealers and consumers are split on the probable impact of the election. On the one hand, the Cox Automotive research revealed that would-be shoppers believe the car-buying climate will get “somewhat” to “much” better post-election.
Conversely, dealer networks hold the antithetical belief. Dealers believe the presidential election will harm the industry. After surveying American automotive dealers, Cox Automotive reported that interest rates continue to ride high on the list. However, concerns over the political climate rose around 7% from Q2 of 2023, a more dramatic increase than other factors.
| Factors Impacting Business | Q2 2024 (percent) | Q2 2023 (percent) |
|---|---|---|
| Interest Rates | 59% | 53% |
| The Economy | 57% | 55% |
| Market Conditions | 41% | 42% |
| Political Climate | 36% | 29% |
| Expenses | 31% | 30% |
A senior manager of Research and Market Intelligence at Cox Automotive, Vanessa Ton, said this about the incipient changes. “Consumers seem to believe the next U.S. election will impact the economy, interest rates and even inflation. With this level of uncertainty swirling about, many have adopted a wait-and-see mentality.”
Moreover, the majority of consumers hold that the upcoming presidential election will impact their “big-ticket purchases.” However, would-be buyers don’t seem to believe that their timing or vehicle choice will be negatively impacted. That said, the prices and rate of inflation remain top concerns for the American car buyer.
