Auto Dealers Bullish on 2014, Plan to Grow Businesses

A new survey shows that auto dealers in the U.S. are optimistic about 2014 and plan to grow their businesses this year.

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

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.”

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.
• 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.

More info at: www.chaseautofinance.com.

Tags: Chase Auto Finance

Category: General Update, Management