Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Independent Dealers Predict Prosperous 2019

An Equifax/NIADA survey of U.S. independent auto dealers charts growing optimism about the economy and their businesses heading into the new year.

November 7, 2018
Independent Dealers Predict Prosperous 2019

 

2 min to read


Nearly one-third of independent auto dealers surveyed by Equifax said they expect to expand operations in 2019.

Photo by danisampa via Pixabay

ATLANTA — A third-quarter survey conducted by Equifax in cooperation with the National Independent Auto Dealers Association show a majority of independent auto dealers believe the U.S. economy and their businesses will continue to perform in 2019.

Dealers were asked whether they expect economic conditions to improve, stay the same, or decline over the next quarter. “Improve” was the most popular answer at 47%; only 36% said the same at this time last year. Nearly one-third (32%) said they plan to expand their businesses over the next quarter by adding new equipment or enhancing their structures or property, a slight gain on the 30% who answered the same question in the affirmative last year.

Ad Loading...

Asked whether they anticipate increased retail sales, 56% said yes (compared with 55% in 2017), 36% predicted sales would be flat (compared with 34%). Only 8% said they expect sales to decrease, even fewer than the 11% who said the same last year.

When asked to cite the factors that could make it difficult to secure loans for used-car buyers, dealers listed tightening credit (40%), reduced access to finance sources (25%), terms that would make it tough to compete with franchised dealers (25%), and enhanced identity and background verification measures (14%).

Equifax analysts said 2018 used-car sales are on pace to match a strong 2017, noting plateauing and declining new-car sales and lease activity. The credit reporting bureau’s deputy chief economist, Gunnar Blix, noted that car buyers overall are financing more — a clear reflection of the continued increase in the price of cars and trucks and the starting impact of rising interest rates.

“We see the shift from new-vehicle sales activity to more used vehicles continuing, largely because the shopper knows the price of autos is going up and they realize they can find bargains on slightly used, off-lease vehicles that are readily available,” he said. “Interest-free loan- and lease-incentives are also becoming few and far between.”

Topics:Industry

Originally posted on Auto Dealer Today

More Dealer Ops

Dealer Opsby Hannah MitchellAugust 26, 2025

Franchises, Throughput Down in First Half

A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.

Read More →
Dealer Opsby Hannah MitchellAugust 19, 2025

Buy-Sells Up in Q2

Kerrigan metrics show there’s plenty of demand, though many sellers are waiting to pull the trigger.

Read More →
F&Iby StaffApril 2, 2025

DOWC Powers the Future of F&I for NESNA

Company is providing a fully integrated F&I administration model to Nissan Extended Services North America’s dealer network.

Read More →
Ad Loading...
Industryby StaffMarch 26, 2025

March New-Vehicle Sales Healthy

Despite incentive spending not keeping pace with deliveries volume, consumers make their purchases ahead of tariffs impact.

Read More →
Product & Technologyby StaffMarch 13, 2025

New DOWC Program Debuts

Hybrid solution combines benefits of reinsurance and dealer-owned warranty companies.

Read More →
Trainingby StaffJanuary 13, 2025

Dealer Survey Finds Anxieties

Kerrigan Advisors poll shows percentage of retailers expecting lower profits, valuations is on the rise.

Read More →
Ad Loading...
Industryby StaffDecember 23, 2024

Calif. Dealer Group Challenges Scout Direct Sales

Says VW unit’s plans to sell directly to consumers violate state law.

Read More →
IndustryNovember 27, 2024

Six Powerful Questions

Take the time to answer these and lay the groundwork for a successful year-end.

Read More →
Dealer OpsOctober 14, 2024

Autumn Analysis

Consider taking the change of the seasons as a cue to evaluate some key operational aspects of the dealership.

Read More →
Ad Loading...
Dealer OpsAugust 20, 2024

Maximizing Revenue Potential

The strategic imperative for auto dealers is to prioritize F&I product sales and wealth-building in challenging times.

Read More →