Overall vehicle sales remained strong or had moderate increases across the Federal Reserve’s 12 districts, but New York and Cleveland reported slight declines in used-car sales, according to the April 17 Beige Book.
Cleveland saw its used-car sales decline in February, but an uptick in leasing is expected to boost used-car inventory. Contacts in this district also saw financing continue to loosen, “except for those buyers with low credit scores,” the report said. New York’s softening of used-car sales stemmed largely from deals on new vehicles that were attractive to buyers. The district also posted that wholesale and retail credit conditions on auto purchases were solid.
Several of the Fed’s contacts in St. Louis relayed plans to open new dealerships, and some in Chicago were stocking their inventories for the spring selling season. Contacts in five districts anticipated a rise in sales in the coming months, and overall used-car prices remained high.
On the lending side, the San Francisco district said a jump in auto and mortgage loans drove improvements in loan demand. Along with Philadelphia, Cleveland, Richmond, Atlanta, Chicago, and Dallas, San Francisco reported very competitive loan prices in their districts.
The next Beige Book will be released June 5.
