A feeling of optimism was alive and well during the recent National Automobile Dealers Association Convention held in Las Vegas, where Ally Financial surveyed dealers about their hopes for sales in 2012.
Nearly half of dealers surveyed expect their sales to increase 10% to 20% this year, and almost another third are even more bullish, expecting sales to grow greater than 20%.
Nearly 75% of dealers surveyed expect consumer confidence to be the key in sustaining sales momentum, surpassing the availability of incentives or vehicle inventory as driving factors. About 60% said the credit profiles of customers coming into their showrooms are improving.
Further, 53% of the dealers surveyed expect the small-car vehicle segment to experience the most growth in 2012.
“Given improved consumer confidence, full year sales for 2012 could surpass the 14 million unit level in the U.S. and position the industry for even greater growth in 2013,” said Tim Russi, Ally executive vice president, North American Auto Operations. “This could factor into dealer decisions on facilities, hiring, and ordering.”
Here is how dealers expect sales volume to grow this year, as compared with 2011:
Isn’t ALLY BANK, which is spending heavily on TV in a postioning statement, actually a bank charter subsidiaary of GMAC?
Interesting that in their attempt to position itself as a TRUSTWORTHY bank, that they minimize the real truth. It took awile to get the phone rep to acknowledge their real ownership.
I also called and asked for a CRA statement, no one knows where one is. They do not make direct loans to customers. They only buy securitized loans – mostly mortgages according to the phone reps and a quick look at their call reports.
So how are they helping with car finance compared to mortgages finance?