The Federal Reserve Board released its Beige Book yesterday, which provides anecdotal information about the economy based on reports submitted by the 12 Federal Reserve Banks. The book, which is released eight times annually, shed some light on the auto finance industry.
Auto dealers continued to struggle, and overall vehicle sales were sluggish in all reporting Districts as weak demand and tight credit continued to limit sales. Used vehicle sales improved slightly in the Boston, Cleveland, Kansas City, and San Francisco Districts, but new car sales remained feeble. Dealers in the Philadelphia District reported difficulty in obtaining financing for inventory purchases, and a few dealerships in the St. Louis District went out of business, but dealers in the Cleveland District reported minimal problems with floor-plan financing. While auto dealers in the Boston, Cleveland, and Kansas City Districts noted some improvements in the outlook, those in the Philadelphia and Dallas Districts expect continued weakness.
If I had to grade this, I’d have to give the industry a “Needs Improvement.”
Is anyone experiencing/hearing anything different?
