A trading statement from Pendragon (LON:PDG) reinforced the notion that Britain's car dealers are among the first to enjoy the fruits of an economic recovery.
The group raised full-year profit expectations after the second half of the year saw a continuation of the profit performance improvement seen in the first half.
The group said the improved performance is due to a combination of the strategic initiatives which it has embedded in the business, as well as improved market conditions.
The latter ties in with anecdotal evidence; digital marketing specialist dotDigital (LON:DOTD) recently revealed in an analysts' briefing that it is seeing a sharp increase in marketing activity from car dealers and estate agents.
Pendragon's shares were up 3.6% in mid-afternoon trading at 39.87p, having hit 41.75p earlier in the day.
Pendragon was not getting too carried away, however; it said: "Whilst the outlook to next year remains promising, we expect that after-sales recovery, driven by new car sales, will continue to be modest and the used car market will remain broadly flat."