DETROIT -

Though used inventory may be low and high wholesale prices continue to challenge dealerships’ bottom lines all over the country, these very same dealers are remaining positive when looking forward to this new year. Inventory might be tight, but their outlook for sales tells a brighter story.

As 2012 gets into full swing, sales are expected to surge by double digits this year, according to the dealers that attended the recent National Automobile Dealers Association convention in Las Vegas.

Nearly half of the dealers surveyed by Ally Financial at the convention this past week expect their sales to increase by anywhere from 10 percent to 20 percent in 2012.

And almost another third are expecting sales to grow by greater than 20 percent, officials noted.

So, what are dealers attributing this expected surge in sales to?

According to the survey, dealers are expecting  improvement in consumer confidence to be the “key in sustaining sales momentum surpassing the availability of incentives or vehicle inventory as driving factors.”

Also, as a sign of the economic recovery, about 60 percent of dealers surveyed said the credit profiles of customers coming into their showrooms are improving.

And just what vehicles are dealers expecting to fly off the lost this coming year?

More than half (53 percent) of the dealers surveyed expect the small-car vehicle segment to experience the most growth in 2012.

Ally executive vice president, North American Auto Operations Tim Russi also commented on the survey results, as well as the coming year: "Given improved consumer confidence, full year sales for 2012 could surpass the 14 million unit level in the U.S. and position the industry for even greater growth in 2013.

“This could factor into dealer decisions on facilities, hiring and ordering,” he concluded.

Ally Financial surveyed dealers on Feb. 4 at the NADA convention. The margin of error for the survey was +/- 6 percent, officials noted.