WASHINGTON, D.C. -

The outlook for dealers throughout the country appears to be bright, according to the Federal Reserve, which said in its latest Beige Book report that the bulk of its 12 Federal Districts enjoyed year-over-year sales increase in the most recent reporting period.

Within the respective districts, the Fed reported several pieces of good news for the auto market. For instance, financing was more accessible in the Cleveland and Chicago districts. Cleveland also enjoyed greater leasing numbers in the most recent period.

The amount of inventory was said to be “appropriate” in Philadelphia, St. Louis, Kansas City and Dallas, based on sales rates. Cleveland contacts said their inventory levels were “mixed” while New York and San Francisco cited low inventory levels, according to the Fed.

Sales were stable in Chicago and Dallas. Inclement weather caused sales in the Kansas City district to decline, however contacts believe there will be an uptick soon.

Moving on, the Fed further broke down the details of each district, beginning with the First District.

Boston

While not offering any auto dealer-specific results, the Fed did say the following regarding the overall retail market in the region: “First District retailers report positive sales results for the months of December through early February, with comparable same-store sales increases ranging from low single-digit percentages to low double digits.

“Respondents are generally pleased with holiday shopping results; however, while a hardware contact benefited greatly from repeated snowstorms, others speculate that the inclement weather had a negative impact on their stores’ sales,” officials added.

New York

In the Second District, for the most part, the 2011 sales outlook appears to be rosy for dealers. They have seen increasingly stronger retail and wholesale credit conditions and “fairly brisk business” in the service department, although there was some tough sledding for service operations at the start of the year.

“Auto dealers in upstate New York report that sales of new vehicles continued to trend upwards in early 2011, as lean inventories of used cars have nudged up prices and spurred demand for new models,” the Fed shared. “Dealers in the Rochester and Buffalo areas report that sales of new autos were up 10-20 percent from a year ago in January, with reports of particular strength for domestic brands.”

It added: “One industry contact notes that a recent auto show in western New York State drew strong traffic.”

Philadelphia

Moving along to the Third District, auto sales showed a year-over-year sales lift during February. Compared to January, sales were “rising gradually.”

It is expected that 2011 full-year sales will improve, but the current gas-price surge could come into play.

“Dealers generally considered their inventories to be in line with near-term sales expectations,” the Fed shared. “Dealers anticipate sales this year to exceed sales last year, although some remained concerned that further increases in gasoline prices could limit the improvement in sales.”

Cleveland

Next up was the Fourth District, where the post-holiday time frame was reported to be “generally positive.”

Specifically, new-vehicle sales in January showed a modest year-over-year gain and a slim month-over-month dip. It is projected that 2011 sales will be stronger than those of 2010.

Among other trends spotted by the Fed, some dealers said they saw leasing gains.

The Fed also noted: “Reports on new-car inventories were mixed. Used vehicle inventories are somewhat lean, with upward pressure on prices. We heard two reports about banks beginning to loosen credit requirements for vehicle purchases.

“Dealers are waiting for more details from automakers before committing to capital investments in their facilities, with some dealers reporting that they are better prepared financially to make these investments,” it added. “Little change in staffing levels is expected during the next few months.”

Richmond

In the Fifth District, the Fed noted that dealers (among other retailers) experienced declining sales, but it pointed out some examples of those that have fared well.

The Fed said that “an auto dealer in the Tidewater area of Virginia said sales were on the upswing. A West Virginia dealer told us that new-car sales grew more rapidly in recent weeks. He noted that his service shop was also gearing up to meet increased demand for repair and maintenance of older cars.”

Atlanta

Moving along, the Fed touched on how the auto market in the Sixth District has fared.

It noted that sales climbed from the year-ago period.

Chicago

The Fed pointed out that auto sales here were stable as they continued to be fairly high. Dealers cited several causes for optimism.

“Dealers remained optimistic, pointing to pent-up demand in some market segments, improvement in the availability of auto financing even for lower quality borrowers, and increases in demand for new and luxury vehicles,” the Fed shared.

St. Louis

January and early February vehicle sales showed gains from the year-ago period, on average, officials said of the Eighth District.

Specifically, sales hikes were reported by roughly 71 percent of surveyed dealers, while 17 percent were static and 12 percent experienced declines.

“One-third of the car dealers noted that used car sales had increased relative to new car sales, while 5 percent reported the opposite,” the Fed highlighted. “Also, about 30 percent of contacts reported an increase in sales of low-end vehicles relative to high-end vehicles, while less than 5 percent reported the opposite.

“About 46 percent of the car dealers surveyed reported that their inventories were at desired levels, while 25 percent reported that their inventories were too high,” it continued.

The Fed also noted that expectations were fairly positive with regards to March and April. Officials explained that 92 percent of dealers are forecasting year-over-year gains.

Minneapolis

In the Ninth District, the Fed said there was an uptick in overall consumer spending. As far as auto-specific data, it noted: “A domestic auto dealer in Minnesota reported that sales of new and used cars were strong.”

Kansas City

Over in the 10th District, although severe wintry weather pushed down auto sales, there were some good signs for dealers.

“While auto sales softened due to severe winter storms, dealers were satisfied with inventory levels and expected a sharp rebound in sales in the near future,” the Fed shared.

Dallas

Next on the list was the 11th District. Vehicle demand was stable, except for early February when wintry weather had a negative impact, according to the Fed. However, demand has steadily improved with gains in confidence among businesses and consumers.

“One contact noted that most of the improvement has been at the retail level and fleet sales have lagged. Dealer inventories are being kept in line with the pace of sales,” the Fed pointed out. “Contacts remain modestly optimistic and expect sales to rise moderately this year.”

San Francisco

Lastly, the Fed discussed the 12th District. Used sales continued to be strong here and there were more gains on the new side.

“Demand for new automobiles continued to strengthen, although higher-than-expected sales in December left some dealers with depleted inventories and an inability to fully meet demand in January,” the Fed stated.