GARDEN CITY, N.Y. -

Annual used-car sales just hit their best levels in five years, but it appears the bar has been set even higher for 2013.  

Fresh off what CNW Research said was the strongest annual used-car sales total since 2007, nearly three quarters of dealers surveyed by Chase Auto Finance believe their respective store’s pre-owned sales will rise this year.

These 200 dealer principals (taken from Chase Auto Finance’s customer base) were polled online between Jan. 9 and Jan. 23, and it appears their expectations are already coming to fruition.

CNW is reporting that used-vehicle sales (including private-party sales as well as the results from franchised and independent dealers) reached 2.35 million units in January, up from 2.20 million in January 2012.

And the sales improvements for dealers were even more pronounced than this 6.82-percent overall hike, according to CNW. Franchised dealers were up 14.46 percent, with 831,155 used-vehicle sales, while independents jumped 16.8 percent with 828,685 sales.

But it wasn’t just the used-car department where dealers were expressing optimism.

In the Chase study, 67 percent of respondents expect a rise in their store’s new-car sales, while nearly half (49 percent) are anticipating service sales increases. Likewise, 48 percent project a gain in service contract/warranty sales. 

In another interesting finding from Chase, 42 percent are anticipating their leasing to increase.

Moreover, 77 percent are seeing improvement in their store’s business and more than two-thirds (68 percent) are observing growth in their respective local economy.

The sense of optimism wasn’t quite as strong for the national outlook; 32 percent are expecting growth in the national economy to begin later in 2013, and 52 percent say that won’t happen until after this year.

But there appears to some bright signs on the dealership employment front. Over 60 percent say they’ll probably expand their inventory in the next six months, and this expansion could mean more jobs, Chase suggested.

Sixty-two percent of dealers have said they are either “very” or “somewhat” likely to add jobs at their store this year.

Among those dealers, 35 percent are planning to hire three to five full-time employees, and 28 percent say they’ll bring on more than six employees. Meanwhile, 28 percent are planning to make one or two hires.

“While dealers are looking to hire and expand inventories, they are less likely to seek financing to fund their expansion plans. More than six in ten dealers (65 percent) say they are 'somewhat' or 'very' unlikely to seek financing,” Chase noted. “Of the 27 percent who will seek financing to increase their floor plans, one in four (29 percent) will expand their dealerships or remodel their existing facilities.”

Offering some overall commentary, Chase Auto Finance chief executive officer Marc Sheinbaum said: “Automobile purchases continue to be a leading indicator of economic activity, and our survey reveals solid optimism for growth in 2013.

“Buying or leasing a new car is an investment that individuals and companies make not only by necessity, but also when they feel good about the stability of their financial future,” he continued. “These results affirm what we saw in the second-half of 2012 and have already seen in 2013. Sales are improving and dealers are investing in their businesses and hiring more people as they prepare for growth.”

Editor's Note: Staff Writer Nick Zulovich contributed to this report.
 

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