The auto market has been among the bright spots for many parts of the country lately, as most Federal Reserve Districts saw car sales climbs and improvements in new-vehicle supply following disruptions earlier this year.

These were just two of the findings in the latest Beige Book report from the Federal Reserve Board, which delved into how dealers throughout the country have been faring in recent weeks.

Overall, the San Francisco and New York districts have shown the greatest uptick in new-car sales, the Fed reported.

Meanwhile, on the used side of the market, three districts — New York, Philadelphia and Dallas — were still seeing high demand as well as tight supply for some models.

The Fed broke each of its 12 districts down, beginning with Boston.

Boston

While there were no dealer-related specifics coming out of the First District, the Fed did note that early this month and late last month, retailers in general were giving “mixed messages about sales trends” and have struggled in “gauging their current circumstances.”

Officials noted: “On a year-over-year basis, sales range from being down 3 percent to up 8 percent, with several in the ‘generally flat’ middle.”

New York

In the Second District, sales were “brisk,” the Fed reported. For upstate New York, thanks in part to inventory getting back on track, sales for this reporting period improved compared to the previous one.

In the Buffalo area, new-vehicle sales were projected to show between a 5- and 10-percent year-over-year increase in August and again in September.

Meanwhile, the new-car market in the Rochester-area climbed between 10 percent and 15 percent last month, following an 11-percent rise the prior month.

“Auto dealers in both areas continue to report strong sales of used cars, with persistently lean inventories driving up prices,” the Fed shared. “Dealers’ service and parts departments also report sturdy business. Auto industry contacts describe both retail and wholesale credit conditions as ‘fine.’”

Philadelphia

Next up was the Third District. In a region where the overall retail market was largely static or soft year-over-year in August and September, the car market was a “bright spot," according to the Fed.

Dealers enjoyed gains in sales these months, officials noted.

“Sales growth meant market share losses for Honda and Toyota, which have resumed full production, but whose dealer inventory may not be fully replenished until early 2012,” the Fed shared. “Inventories remain lean and used cars remain scarce, leading to strong prices for dealers.”

Provided that the sales gains remain, dealers may do a bit of rehiring, officials noted.

Looking forward, however, dealers say they are “uncertain” about where sales may go.

Cleveland

In the Fourth District, sales during mid-August through late-September were described as “mixed,” although most reporting dealers showed gains, many posting double-digit year-over-year increases.

The area is still see gains in demand for the fuel-efficient, less pricey cars, but crossovers are still rather robust.

As far as inventory, dealers are making headway, particularly in their supply of Japanese-brand units, the Fed reported. However, they are not quite where they want to be.

On the used side of the market, the Fed is spotting stable demand, although it has dipped.

Additionally, the region had been seeing some gains in dealership hiring, but not anymore. And even the stores who are hiring are struggling to spot ideal hires.

Offering some more analysis, officials stated: “Dealers are cautious in their outlook due to uncertainty about the economy and the availability of vehicles that consumers want to buy.

“We heard a few reports of some easing in credit restrictions, while banks and credit unions continued to price loans very competitively,” they added. “Many dealers are in the process of initiating factory-mandated programs for showroom upgrades and reimaging.”

Richmond

In a market where other big-ticket items remained “soft,” many dealers reported stability in their sales in the Fifth District.

Sharing some examples of individual dealers, the Fed noted: “A West Virginia auto dealer said that his sales were close to 2010 levels, while a dealer near the D.C. metro area reported a stronger month, led by imports.”

Atlanta

Moving down to the Sixth District — despite the overall retail market declining just a bit — the Fed said this area’s sales remained on the upswing.

“Merchants noted that retail sales decelerated slightly compared with the previous month, although auto sales continued to advance at a solid pace,” the Fed noted.

Chicago

Over in the Seventh District, the Fed indicated that a boost in incentives helped to lift car sales.

“Consumer spending was up moderately in September. Auto sales were higher, due in part to increased incentives,” officials shared.

St. Louis

Next up was the Eighth District. Sales showed increases here, but dealers are expecting the rest of the year will show a slowdown.

Also, auto and auto parts firms in the area are planning to “expand operations and hire new workers,” officials noted.

Minneapolis

The Fed indicated that overall consumer spending climbed modestly in the Ninth District and shared one interesting tidbit about the auto market.

“Auto dealers in southern Minnesota reported that sales were bouncing back to stronger levels; consumers who put off purchases over the past couple of years are now needing to buy a different vehicle,” the report noted.

Kansas City

In the 10th District, the Fed spotlighted some very encouraging news, but also shared some of the challenges that dealers in the region are facing.

Sales — which came in stronger than anticipated during the reporting period — are likely to grow even more in coming months. However, there do appear to be some bumps in the road.

“Auto sales were also higher than expected despite several contacts describing low consumer confidence due to economic and political uncertainty,” the Fed explained. “Many auto dealers reported difficulty finding qualified sales people and technicians.”

Dallas

Moving on, the 11th District showed stability in the car market, although traffic slowed a bit amid “economic concerns caused by pessimistic headlines.”
But that didn’t keep folks from buying cars, the Fed noted. Looking forward, dealers are projecting that sales will remain on a moderate uptick.

The Fed also pointed out that dealers are seeing supply that is “somewhat light” but mostly at the right level. On the used-car side, supply is still tight, pushing up prices.

San Francisco

Delving into the 12th District, there were significant gains in new-car sales, thanks to hearty demand and restocked supply following the Japanese disaster.

With new-car demand climbing, this had an impact on the used side.

“In response to the surge in demand for new autos, the demand for used vehicles weakened somewhat and their prices softened,” the Fed shared.