FORT LAUDERDALE - Car dealership chain AutoNation Inc. said today its new vehicle sales rose 29 percent last month compared with a year ago, another sign that people are returning to showrooms to replace their aging rides.

The Fort Lauderdale, Fla.-based AutoNation's sales come one day after automakers reported a 27 percent increase in U.S. sales last month fueled by higher incentives, better consumer confidence, a return of leasing and wider availability of auto loans, reported The Detroit News.

AutoNation said it sold 17,041 vehicles last month. Nearly a third, or 5,240, were made by U.S.-based manufacturers, an increase of 40 percent over February of last year. Sales of foreign brands were up 35 percent at 9,114, while premium luxury vehicle sales fell 1 percent to 2,687, the company said.

Industry analysts are predicting a gradual improvement in auto sales as the year progresses and were surprised by the strength of the market in February. Part of the growth is because people kept their cars and trucks longer during the economic downturn and are starting to replace them.

The average vehicle on U.S. roads in January was 10.2 years old - the oldest since 1997 and a full year older than in 2007, before the recession, according to the National Automobile Dealers Association.