Auto Dealers Expect Sales Growth in 2013, Chase Auto Finance Survey Finds
More than 60 percent of auto dealers are likely to expand their payroll, hire
full-time staff this year
GARDEN CITY, N.Y. -- February 5, 2013
Automotive dealers expect an increase in sales in 2013, according to a new
survey from Chase Auto Finance. The Chase Auto Finance Dealer Survey, which
reveals dealers’ 2013 expectations on hiring, financing, auto industry trends
and the U.S. and local economy, also found that an overwhelming majority of
dealers believe the auto industry and their own dealership businesses are
improving and primed for growth.
Green Lights Ahead for Sales
Nearly half (45 percent) of auto dealers surveyed expect sales growth between
five to 10 percent this year, while 22 percent expect sales to increase 11 to
15 percent. Another ten percent anticipate sales to increase 16 to 20 percent
and five percent of auto dealers are planning sales growth of 20 percent or
more in 2013.
Specifically, auto dealers expect new and pre-owned sales growth in 2013.
Two-thirds (67 percent) anticipate new sales to increase, while 73 percent of
dealers expect growth in pre-owned sales. Additionally, dealers expect healthy
increases in service sales (49 percent), service contract/warranty sales (48
percent) and leases (42 percent).
Sedans Are Top Choice for Americans
More than half of dealers (57 percent) say the sedan will be the top selling
type of automobile in 2013. Trucks (17 percent) are a distant second, followed
by crossover vehicles (13 percent) and SUVs (9 percent). The trends look
similar for fleet sales, which are an important indicator for economic growth.
Dealers who also participate in fleet sales (44 percent) said the sedan is
expected to fuel sales growth (53 percent), followed by trucks (47 percent),
crossover vehicles (20 percent) and SUVs (20 percent).
Dealers Optimistic About the Economy
More than three in four (77 percent) auto dealers surveyed believe their
dealership business is improving, and 68 percent believe the economy in their
local community is strengthening. As for the national economy, nearly a third
of dealers (32 percent) believe the national economy will start getting better
later this year and more than half (52 percent) said not until after 2013.
“Automobile purchases continue to be a leading indicator of economic activity,
and our survey reveals solid optimism for growth in 2013,” said Marc
Sheinbaum, CEO of Chase Auto Finance. “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. 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.”
More than 60 percent of dealers are likely to expand their inventory in the
next six months. As dealerships expand, they also expect to create more jobs.
Of the more than three in five (62 percent) of dealers who say they are “very”
or “somewhat” likely to expand their payrolls in 2013:
*More than a third (35 percent) say they expect to hire three to five
full-time employees this year;
*Nearly three in ten (28 percent) expect to hire more than six employees;
*Twenty-eight percent expect to hire one or two employees.
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. Of
the 27 percent who will seek financing to increase their floorplans, one in
four (29 percent) will expand their dealerships or remodel their existing
About Chase Auto Finance Dealers Survey
The inaugural Chase Auto Finance Dealer Survey was an online poll conducted
between January 9 and January 23, 2013 among 200 auto dealers (Dealer
Principals) across the country. Auto Dealers were drawn from Chase Auto
Finance’s national customer base. The survey was administered internally and
data was collected in aggregate.
About Chase Auto Finance
Chase Auto Finance, a division of J.P. Morgan Chase (JPMC), is one of the
leading bank providers of auto financing in the country. With a portfolio of
more than $49 billion in assets and relationships with more than 75 percent of
all U.S. franchised automotive dealers, Chase Auto Finance provides a broad
spectrum of products to meet the full range of credit needs of their
customers. Chase Auto Finance purchases auto loans and leases from a national
network of automotive dealers as well as making auto loans directly to
consumers through various Chase channels. In addition, Chase Auto Finance
provides commercial loans to auto dealers throughout the U.S. and maintains a
reputation for delivering high-quality services as well as a long-term
commitment to auto dealers and the overall auto industry. More information can
be found at www.chaseautofinance.com.
Chase Card, Merchant Services & Auto Finance
Edward J. Kozmor, 302-282-7170
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