In what was described as a “mixed, but fairly robust” market, dealers by and large have experienced either stable or improving vehicle sales. As for supply issues, they have been spotted quite often throughout the country and have had some adverse effects, according to the Federal Reserve’s latest Beige Book report.

The used-vehicle market is also experiencing a supply challenge due to high demand and low inventory, the Fed said in its report, which discussed the insight and data from its contacts throughout the 12 respective districts.

Reviewing the overall analysis, the Fed reported: “Most Districts reporting on vehicle sales indicated that they have been steady to stronger since the last report, specifically Richmond, Chicago, St. Louis, Kansas City, Dallas and San Francisco.”

It also reported that that Atlanta market has seen “firm demand,” as well.

“On the other hand, some softening in car sales was noted in the northeastern districts of New York, Philadelphia and Cleveland,” the Fed stated. “Many districts indicated that supply disruptions, primarily from Japan, have contributed to lean inventories, which have impeded auto sales somewhat.”

Officials also pointed out that Philadelphia, Cleveland and Chicago areas have seen consumers move over to smaller, gas-friendlier rides, according to contacts there. The St. Louis district has seen shoppers lean toward lower-end units instead of higher-end rides.

The Fed broke down the reports from its contacts by each of the 12 districts, beginning with Boston.

Boston

In the First District, the Fed did not provide any auto sales data, per se, but did note that: “A parts manufacturer autos and other vehicles reports that it is struggling to keep up with increased demand.”

As far as the overall retail environment in the district, officials noted: “First District retailers report mixed sales results for the period from late March through mid May, with comparable same-store sales ranging from low double-digit decreases to low single-digit increases.

“A few contacted retailers mention decreases in demand, and all express concern about the negative impact of rising fuel prices on their own costs, especially shipping, and on consumers’ shopping habits,” it added.

New York

Moving along to the Second District, the Fed shared some insight regarding dealers in upstate New York. Specifically, sales for these dealers were a bit more modest in the most recent reporting period than they were in the first quarter. That said, their sales are still besting year-ago figures and are at “fairly high levels.”

“Some of the slowing in sales is attributed to supply disruptions related to the tsunami in Japan,” the Fed noted. “One local auto dealers’ association reports an exceptionally low inventory of used vehicles which has hampered sales volume and pushed prices up.”

With regards to credit conditions, there remains an upswing on the retail side, but the picture was “mixed” for the wholesale market.

Philadelphia

Next up was the Third District, where May vehicle sales were down from what where they had been earlier in the year, officials noted. The fallout from the Japanese disaster and gas prices were among the factors cited as impacting vehicle sales.

“Third District auto dealers generally reported that sales slowed in May from the pace set from January through April,” the Fed explained. “Some dealers said they were facing supply constraints resulting from the interruption of Japanese vehicle and parts production, and some dealers said demand has slowed as consumers reconsider model preferences in response to higher gasoline prices.”

Looking forward, dealers here aren’t quite sure of what the future will hold for sales. The belief among the bulk of dealers is that gas prices and consumer confidence will have more of an impact on sales compared to previously this year, the Fed reported.

Cleveland

Vehicle sales in this region benefited from regional auto shows in March, but sales came down modestly in April and early May. The Fed also reported that nearly the entirety of its contacts in the Fourth District made more purchases compared to the prior-year period.

“Demand for smaller, fuel-efficient cars continues to rise, while inventories were characterized as somewhat low by most dealers and may be hurting sales,” officials noted. “Dealers are cautious in their outlook due to high gas prices and concern over the availability of vehicles with a Japanese nameplate.”

On the used side of the market, dealers are seeing robust demand, particularly when it comes to fuel-friendly units. That being said, prices are climbing, thanks in part to the supply shortage.

“Credit availability and pricing have improved, and the use of leasing as a credit alternative is growing,” the Fed pointed out. “Automakers are now putting in place timetables for dealers to complete reimaging and expansion of their facilities.”

The difficult-to-find financing is the sole hurdle dealers are facing in this regard, the Fed noted, adding that limited hiring has cranked back up at most stores.

Richmond

Continuing on, the Fifth District’s auto markets were largely static or saw things move upward.

“Most auto dealers that we contacted cited flat-to-stronger sales, despite scattered reports of inventory or parts shortages caused by the Japanese crisis,” the Fed pointed out.

Atlanta

Further South, the Sixth District showed that, overall, manufacturers saw gains in new orders and products, but this was not the case for auto manufactures in the region.

“Auto manufacturers, however, reduced production because of supply constraints stemming from the Japanese earthquake,” the Fed noted.

On the dealer side of the market, inventory was down and demand was strong.

Chicago

In the Seventh District — which is home to the Michigan headquarters of each of the Big 3 OEMs — domestic automakers, in particular, have enjoyed a lift due to two main factors related to supply and vehicle quality, the Fed noted.

Overall, the region saw stronger vehicle sales thanks to passenger car demand increasing and counteracting what was a modest truck/SUV sales dip.

“Auto dealers reported that their inventory levels of small passenger cars were starting to come under pressure due to higher than anticipated demand for fuel efficient vehicles and production disruptions related to the situation in Japan,” the Fed shared.

And It is likely that the supply dearth’s downward impact on the inventory at Japanese brand dealers won’t end anytime in 2011, according to the Fed’s contacts.

“These supply constraints were noted to be causing used car prices to rise, as well as benefitting passenger vehicle sales of the Detroit automakers,” the Fed pointed out. “Quality improvements were also said to have put the Detroit 3 in a better competitive position.”

St. Louis

Dealers in this region saw year-over-year gains in vehicle sales in April and early May, according to the report. Specifically, more than half (about 58 percent) enjoyed gains with less than a third (29 percent) reporting declines. Flatness was spotted at 13 percent of dealerships.

Offering some more detailed insights, the Fed said: “About 38 percent of the car dealers noted that used-car sales had increased relative to new-car sales, while 21 percent reported the opposite. Also, about 29 percent of contacts reported an increase in sales of low-end vehicles relative to high-end vehicles, while less than 4 percent reported the opposite.”

Like many areas of the country, inventory shortage was a big problem here for dealers. More than half (roughly 57 percent) believed they didn’t have vehicles in their stock. Interestingly, 9 percent felt they had too many units.

Looking forward, most dealers in the region (about 58 percent) are forecasting year-over-year sales gains in June and July.

Minneapolis

In the Ninth District, overall consumer spending was on a modest rise. As far as the auto market, specifically, the Fed gave one example of optimism as well, noting: “An auto dealers association in North Dakota forecasts a 10 percent increase in vehicle sales for 2011.”

Kansas City

Moving on to the 10th District, auto sales didn’t climb as sharply as they had in the prior reporting period, although they still moved ahead.

“Auto inventories declined further, and several dealers reported additional supply constraints due to the natural disaster in Japan,” the analysis stated.

Dallas

Down in the 11th District, contacts reported growth in vehicle sales, and it is likely these will remain moving moderately upward, but this comes with a caveat.

“Automobile sales continue to improve, but inventories will likely be thin in coming months due to the effects of the tsunami on Japanese manufacturers supply chains,” the Fed noted. “Contacts expect demand to continue improving at a modest pace throughout 2011.”

San Francisco

Lastly, 12th District dealers are still seeing increasing demand for new vehicles, but high fuel prices and supply shortage for Japanese vehicles has held the sales upswing back a bit.

On the used side of the market, the Fed said: “The availability of used vehicles tightened further, primarily for imported models, which has propped up their sale prices and trade-in values.”