Widespread Positive Signs for Dealers on Sales Front
Ten of the nation’s 12 Federal Reserve Districts posted car sales in late 2012 that were at least “steady,” with several of these regions actually enjoying more robust figures to cap the year.
That’s according to the Fed’s latest Beige Book report, which said “strong sales” were cited in the latest reporting period by the Richmond, Atlanta and San Francisco districts.
Meanwhile, the Kansas City district saw sales soften but stay ahead of year-ago figures, with Dallas and New York dealers reporting “mixed sales that were generally positive,” according to the Fed.
“Some dealers in the Chicago and Kansas City Districts reported high levels of inventory. Contacts in Philadelphia, Cleveland, Kansas City, and Dallas expect consumers to react to ongoing fiscal uncertainty, thus dimming a positive outlook for future sales,” officials said in the report.
“Chicago auto dealers were more upbeat, expecting stronger new-car sales due to pent-up consumer demand, easing credit conditions, and rising used-vehicle prices,” they continued.
Overall, it appears December — which constituted a huge chunk of the Beige Book’s most recent reporting period — represented a fairly healthy market.
According to the Auto Sales Trend reports prepared by the NADA Industry Analysis Group (using data from WardsAuto.com), there were 1.35 million new-vehicle sales in December, compared to 1.24 million in December 2011.
On the used-car side, December capped what was the strongest year for used-car sales since 2007, according to CNW Research. There were 40.5 million used sales, the firm said.
What's more, the certifed pre-owned market was the best it has ever been, setting an all-time record with 1.83 million CPO sales in 2012.
Joe Overby can be reached at joverby@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.