CLEVELAND -

For the first time this year, some dealers are seeing finance companies pull back in their willingness to complete contracts.

According to the latest dealer survey from KeyBanc Capital Markets, the financing outlook still remains favorable as 50 percent of the firm’s survey respondents reported banks and finance companies were becoming more aggressive in lending during the month of February. Meanwhile, 42 percent of participating reported no change from the prior year.

However, the remaining 8 percent reported a pullback, the first time that trend appeared in a KeyBanc survey in several months.

Perhaps the metric is an anomaly as analysts reported a majority of respondents — 58 percent to be exact — indicated that financing for subprime borrowers is loosening further while 33 percent indicated no change in the subprime lending availability. Only 8 percent indicated a tightening in the subprime market.

KeyBanc also reported that survey participants noted used-vehicle gross profit per unit remained positive in February as 67 percent of its respondents indicated an increase of more than $50 per unit year-over-year. Analysts said another 17 percent indicated flat year-over-year results and another 17 percent reported a decline of more than $50 per unit.

“Some new- and used-vehicle sales were lost to disruptive winter weather in Q1 and weather impact remains evident in early March in line with our expectations, however we remain confident that demand will rebound as the weather improves and some sequential improvement is evident in March as 42 percent of our survey respondents indicated volumes were accelerating and our full year earnings estimates remain unchanged,” KeyBanc analysts said.

“Weather impact remained evident in early March as 42 percent of our survey respondents indicated volumes were relatively the same with February’s weaker levels,” they continued. “However, it is reasonable to anticipate some improvement as another 42 percent of respondents indicated various levels of sequential acceleration, in line with and above seasonal trend. The remaining 16 percent continued to indicate a sequential deceleration,” they went on to say.