Auto Dealers Optimistic About 2014 and Planning to Grow their Business,
Chase Auto Finance Survey Finds
Seven in ten dealerships likely to expand payroll, inventory
GARDEN CITY, N.Y. -- January 24, 2014
Two-thirds (66.4 percent) of auto dealership business owners believe the U.S.
economy has already “bottomed out” and is getting better, according to the
second annual survey of auto dealers by Chase Auto Finance. Nearly 8 in 10
dealers (79.4 percent) believe the auto industry as a whole is getting better.
The survey, performed in December 2013 among dealership clients that do
business with Chase, found that dealers were most optimistic about their own
business’s economy. Eighty-four percent of dealers say their business is past
the worst of the economic downturn and is getting better – a 6.8 percent
increase from the same survey performed in 2012. Up 8 points from last year’s
survey, nine in ten (90.5 percent) say they are anticipating more than 5
percent in overall sales growth for their dealer.
Dealers planning to expand their business
Preparing their businesses to handle this growth, dealers are eyeing expansion
plans. Key findings from the survey:
*71 percent are likely to expand their payroll in 2014 – nearly 10 percent
higher than last year. Of those, nearly 30 percent plan to hire more than
*73 percent are likely to expand their inventory in the next six months –
up from only 60 percent from a year ago
*One in four will seek financing for their expansion. Forty-one percent of
those dealers say they would use the financing to increase their floorplan
– an 8 point increase from last year.
“We’ve seen dealer expectations on hiring and business expansion gain steadily
year over year,” said Thasunda Duckett, CEO of Chase Auto Finance. “Our latest
survey results support that, and show optimism for an economic recovery in the
Dealers anticipate pre-owned vehicles, SUV’s, will be growth leaders
In thinking through the segments that will drive growth, dealers share their
*Dealers believe that pre-owned sales will be the most likely category to
drive growth in 2014 (41.3 percent), surpassing new sales (29 percent),
which dropped six points from last year.
*Votes for the sedan as the number one selling vehicle dropped nearly 24
points this year, with only 33 percent predicting the sedan would sell the
*The SUV surged in popularity among dealers, with 28 percent predicting
this vehicle would sell the most – a 19 percent increase from last year.
*Overall, dealers believe that sedans (43.1 percent), SUV’s (41.2 percent),
trucks (31.7 percent), and crossovers (28.2 percent) would “fuel growth”
for their business.
Fleet sales drop
Only 26 percent of dealers say they participate in fleet sales – a 17.5 point
decline from last year’s survey. Of those who do, nearly half (48.5 percent)
say that they are expecting growth in this segment by less than 5 percent.
About Chase Auto Finance Dealers Survey
The Chase Auto Finance Dealer Survey is an online poll conducted between
December 18, 2013 and January 13, 2014, with 262 responses from dealers
(Dealer Principals) across the country – with a margin of error +/- 6%. 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 JPMorgan Chase Bank, N.A. (JPMC), is one of
the leading bank providers of auto financing in the country. With a portfolio
of more than $55 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.
Trish Wexler, 212-270-5883
Follow us @Chase
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