A massive 74 per cent of car dealers are either positive or very positive about their performance this year, according to a report by Baker Tilly. The positive mood is a result of increased consumer confidence, which is seeing more and more consumers purchasing vehicles. The survey showed that 46 per cent believe that new car sales will have the greatest impact on their business in 2014, with a third saying used cars would bring the best value. However, 43 per cent said that servicing would have a negative impact in 2014 _ with consumers either skipping them altogether or using local garages, reckoned to be cheaper. Despite growing optimism, the research showed that dealers are unlikely to invest for the future this year. Only 19 per cent expected to raise finance for growth in 2014, with dealers consolidating their position rather than pursuing large expansion plans. Graham Bushby, national head of restructuring and recovery at Baker Tilly, said: "After a strong 2013 when registrations reached the highest annual total since 2007, 2014 has started well with registrations up almost 8 per cent in January compared to the same month last year. "However, the recovery is still fragile, the market is very competitive and the recent boost to consumer spending as a result of PPI pay-outs is unlikely to last. "What's clear from our survey is that dealers are taking nothing for granted." The car industry has seen a surge in new car sales, with 7.6 per cent more new cars registered in January than in the same month last year. This was the 23rd successive month of year-on-year increases, following a 10.8 per cent rise in the whole of 2013, when registrations soured to a six-year high of 2.265million. Sales in the UK continue to rise despite negative growth in Europe. Analysts suggest that Britain could be churning out more than 2million cars a year by 2017 _ the highest figure on record. Sales of ultra-low carbon vehicles also increased by a quarter compared to last year. Mike Hawes, SMMT chief executive, said: 'The new car market ended 2013 on a high, so it is encouraging to see the January market start the year strongly. 'As fuel economy is a major consideration for many motorists, ongoing investment by vehicle manufacturers in innovative, fuel-efficient technology is a key factor in the growing demand for new cars. Looking ahead, the UK automotive industry expects to see moderate, sustainable growth in 2014.î