WASHINGTON, D.C. -

While two regions were reporting softer used-vehicle sales, the general sales climate for dealers in the U.S. appears to have been quite strong as of late.

That’s the latest from the Federal Reserve, which released its Beige Book report this week summarizing economic conditions as reported to the Fed by businesses and other outside contacts throughout its 12 Districts.

The insight inlcudes a variety of economic sectors, including new- and used-vehicle sales.

“Overall, automobile sales remained strong or increased moderately since the last report. The exception was a slight decline in sales of used vehicles in the New York and Cleveland Districts,” the Fed’s report read.

One example of this strength is in the St. Louis District, where several dealer contacts have told the Fed they plan on opening new locations. And for the most part, dealers in this region have had “positive” sales reports.

What’s more, it was reported that Chicago District dealers were gearing up for spring selling season by grabbing more supply for their lots. In its summary of Chicago District, the Fed reported that “auto sales leveled off;” however, it also noted that dealers there have a positive outlook.

“Dealers are still optimistic that sales will rise further year than last year, and are building inventory for the spring selling season,” the Fed said about this region. “Used-vehicle prices remained elevated, boosting trade-in values. In addition, dealers noted that customers' credit profiles continue to improve, allowing more of them to qualify for auto loans.”

Looking forward, sales prospects throughout the country appear solid.

“Outlooks were mostly positive, and contacts in the Cleveland, Chicago, Minneapolis, Kansas City, and Dallas Districts expect sales to increase in coming months,” it noted. “However, some auto dealers in the Cleveland District expressed concern about the potential negative impact of fiscal policy on consumer spending.”

 

Editor's Note: The Fed said in its report that this information was collected on or before April 5. It also noted: “This document summarizes comments received from businesses and other contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials.” The full Beige Book report can be accessed here.

 

Joe Overby can be reached at joverby@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.