With automakers offering lavish sales for the Memorial Day weekend, industry-watchers are optimistic May will end on an upbeat note. But even before the annual holiday event, sales of new vehicles have been rocking along this month, with analysts predicting May will see a significant upturn from year-ago sales.
New light vehicle sales in the U.S. are expected to hit 1.52 million units, up 5.5% from May 2013 and a 9.5% increase from April 2014, according to TrueCar, which is predicting that the Seasonally Adjusted Annual Rate, or SAAR, will reach 16.1 million when the books are closed on May, a 6% year-over-year increase.
Spring car sales generally are some of the year’s strongest, but industry observers are particularly relived considering the unexpectedly sharp slide in demand during this past, cold Winter.
“The industry is back to the level we expected at the beginning of the year,” said Larry Dominique, President of data tracking service ALG, and Executive Vice President of TrueCar. “Chrysler, GM and Nissan are all benefiting from increased demand. They are showing higher sales and are able to pull back on incentive spending,” he added.