This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Auto Dealers Optimistic About 2014 And Planning To Grow Their Business, Chase Auto Finance Survey Finds

Two-thirds (66.4 percent) of auto dealership business owners believe the U.S. economy has already “bottomed out” and is getting better, according to the second annual survey of auto dealers by Chase Auto Finance. Nearly 8 in 10 dealers (79.4 percent) believe the auto industry as a whole is getting better.

The survey, performed in December 2013 among dealership clients that do business with Chase, found that dealers were most optimistic about their own business’s economy. Eighty-four percent of dealers say their business is past the worst of the economic downturn and is getting better – a 6.8 percent increase from the same survey performed in 2012. Up 8 points from last year’s survey, nine in ten (90.5 percent) say they are anticipating more than 5 percent in overall sales growth for their dealer.

Dealers planning to expand their business

Preparing their businesses to handle this growth, dealers are eyeing expansion plans. Key findings from the survey:
  • 71 percent are likely to expand their payroll in 2014 – nearly 10 percent higher than last year. Of those, nearly 30 percent plan to hire more than 6 people
  • 73 percent are likely to expand their inventory in the next six months – up from only 60 percent from a year ago
  • One in four will seek financing for their expansion. Forty-one percent of those dealers say they would use the financing to increase their floorplan – an 8 point increase from last year.

“We’ve seen dealer expectations on hiring and business expansion gain steadily year over year,” said Thasunda Duckett, CEO of Chase Auto Finance. “Our latest survey results support that, and show optimism for an economic recovery in the works.”

Dealers anticipate pre-owned vehicles, SUV’s, will be growth leaders

In thinking through the segments that will drive growth, dealers share their predictions:
  • Dealers believe that pre-owned sales will be the most likely category to drive growth in 2014 (41.3 percent), surpassing new sales (29 percent), which dropped six points from last year.
  • Votes for the sedan as the number one selling vehicle dropped nearly 24 points this year, with only 33 percent predicting the sedan would sell the most.
  • The SUV surged in popularity among dealers, with 28 percent predicting this vehicle would sell the most – a 19 percent increase from last year.
  • Overall, dealers believe that sedans (43.1 percent), SUV’s (41.2 percent), trucks (31.7 percent), and crossovers (28.2 percent) would “fuel growth” for their business.

Fleet sales drop

Only 26 percent of dealers say they participate in fleet sales – a 17.5 point decline from last year’s survey. Of those who do, nearly half (48.5 percent) say that they are expecting growth in this segment by less than 5 percent.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs