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Posts Tagged ‘May auto sales’

Strong Holiday Weekend Needed to Eclipse Sales from Last May

Analysts warning that auto sales are flattening out.

by on May.20, 2016

Ford's SUV sales in April were red hot with the Explorer up 13%. They'll need a repeat performance in May to keep sales predictions on track for 2016.

Automakers are counting on strong new-vehicle sales over the Memorial Day holiday weekend to give May sales the boost needed for a moderate increase over 2015 results, according to a monthly sales forecast developed jointly by J.D. Power and LMC Automotive.

New-vehicle retail sales in May are expected to increase by a modest 2% from a year ago on a selling-day adjusted basis, but the actual sales totals will drop year over year, according to the forecast.

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The final figures for the month will depend on the Memorial Day weekend, which historically is one of the best sales weekends of the year at car dealerships across the country, Power’s analysts noted. However, there are two fewer selling days than there were in 2015 when strong sales in May led to strong sales through the summer and fall. (more…)

Auto Sales Booming – But Are Automakers Pricing New Cars Out of Reach?

Even economy cars now require a 6-figure household income level.

by on Jun.10, 2015

Ne vehicle sales are booming, but middle class salaries are stagnating at the same time. How long will the good roll with this conundrum?

A half-decade after plunging to its lowest levels in a half-century, the U.S. new car market is in the midst of a major boom. Repeatedly countering skeptics, Americans keep buying more and more new cars, trucks and crossovers, and a new Bank of America study suggests we could see an all-time sales high of 20 million by 2018.

Car manufacturers already are taking in record revenues. All told, U.S. buyers spent $52 billion for their new vehicles in May, as the price of the typical vehicle surged to $32,452, up 4% from May 2014, according to TrueCar.com. At a time when the American middle class is suffering from income stagnation, that may come as a surprise. Buyers are finding workarounds, among other things, stretching their car loans out to record levels. Others, however, are abandoning the new car market in favor of “nearly new” certified used car programs.

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That’s leading some skeptics to wonder whether the sales boom can continue at a time when many automakers are raising prices at well above the rate of inflation, stretching already strained middle-class budgets. With traditional low-cost brands like Hyundai and Kia moving up-market, could that create an opening for a new generation of entry-priced offerings from China’s ambitious automakers? (more…)

As Weather Warms, May Auto Sales Sizzle

Buyers come out in droves for new vehicles.

by on Jun.02, 2015

The Mercedes-Benz C-Class led the brand to an 11.1% sales increase in May.

While May auto sales were expected to be strong, the overall thought was that sales would be down a bit due to one less selling day; however, new car buyers came out in force and, in the process, ensured several sale streaks remained intact.

The early predictions called for overall sales to drop 1%, but several estimates have them coming in as high 1.5% over the previous May’s results.

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Four automakers extended runs of consecutive months of increased sales in May: Fiat Chrysler with 62 months, Audi at 53 months, Subaru with 42 months and Mercedes-Benz, which has a much shorter streak of just five months. (more…)

Spending on New Cars Hits All-Time High, Even as Loans Stretch to Record Lengths

Average transaction prices up 4% in May.

by on Jun.02, 2015

Buyers filled the showrooms of car dealers and added to the bottom lines of automakers in May.

While May might not have brought the big uptick in sales we’ve seen in recent months, preliminary data suggest that automakers took in record revenues, with the average transaction price of new cars, trucks and crossovers sold last month climbing by at least 4%.

All told, U.S. buyers spent a record $52 billion for their new vehicles in May, in part, due to a sharp, year-over-year decline in incentives, according to several firms that track monthly sales data. A separate study suggested that motorists are covering those higher costs by stretching their loans out longer than the industry has ever seen, an average 67 months.

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“New vehicle sector and segment preference indicates consumers are confident about the economy and their finances,” said TrueCar President John Krafcik. “Not only are these shifts to premium brands and utilities telling from an economic indicator standpoint, they signal sizable revenue gains automakers should reap this year.” (more…)

Trucks, SUVs, Crossovers Lead Sales Pack in May

Sedans take a hint as buyers still want big vehicles.

by on Jun.02, 2015

The 2015 Chevrolet Silverado is selling well for GM. The maker's "three truck" strategy helped the maker to a May sales increase.

While the other economic sectors suffered in May, the auto industry continued to post healthy sales in May even as sales showed sales leveling off at seasonally adjusted annual sales rate or SAAR of nearly 17 million units.

The domestic carmakers, Fiat Chrysler and General Motors, posted sales increases as did Infiniti, and Volkswagen, which has taken its share of lumps for its poor sales performance during the last two years.

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FCA US reported a 4% increase compared with sales in May 2014, making it the group’s best May sales since 2005. The Chrysler, Jeep and Ram Truck brands each posted year-over-year sales gains in May compared with the same month a year ago. The Chrysler brand’s 32% increase was the largest sales gain of any FCA brand during the month. The group extended its streak of year-over-year sales gains to 62 consecutive months, Chrysler officials said. (more…)

New Vehicle Sales Booming in May, Tracking for 17 Mil

Sluggish April being offset by this month’s results.

by on May.22, 2015

Sales in May are outperforming expectations, led in some measure by strong SUV and truck sales.

The economic “showers” that slowed new car sales in April are resulting blooming results in May as new vehicle sales are exceeding expectations thus far this month despite the slow tempo of economic growth in the U.S.

“The industry continues to outperform prior-year levels with respect to retail sales and transaction prices,” said John Humphrey, senior vice president of the global automotive practice at J.D. Power.

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Total light-vehicle sales in May 2015 are projected to reach 1,591,100, a 3% increase on a selling-day-adjusted basis compared with May 2014. Fleet volume is expected to hit 290,500 units, accounting for 18.3% of total sales, up from 17.6% a year ago. (more…)

Rising Sales Matched by Rising Fuel Economy in May

Sales hit 16.8 million rate while fuel economy improves too.

by on Jun.09, 2014

Ford's F-150, along with other full size trucks, have had banner sales in May and improved gas mileage.

Despite brisk sales of trucks and utility vehicles, the fuel economy of new vehicles purchased by American cars sales continued to climb in May when the seasonally adjusted annual rate of sales reach 16.77 million units, according to a new study by the University of Michigan.

The average fuel economy of new vehicles sold in the U.S. in May was 25.6 mpg — up 0.4 mpg from the value for April. Gasoline prices have been relatively stable during the last year – averaging around $3.64 per gallon – but are still relatively high by historical standards, according to GasBuddy.com.

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Figures from Gas Buddy show that gasoline prices vary from state to state. The highest prices are currently found in California where prices have once again topped $4 per gallon. The price of diesel fuel is also relatively stable across the United States. Diesel fuel is about 30 cents more per gallon in most places around the United States, except in California where it is only 10 cents per gallon higher, the U.S. Energy Information Administration reports.  (more…)

New Car Sales Soar in May

Ford defies expert predictions with small sales increase.

by on Jun.03, 2014

Jeep Wranger saw its best May sales ever last month. The Jeep brand overall was up 58% during the period.

Buoyed by fantastic weather and a fifth weekend for dealers to move metal, new vehicle sales during demonstrated renewed strength in May.

Those factors helped Jeep post its best monthly sales in history and led General Motors to predict it would gain marketshare this year.

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General Motors, Ford, Chrysler, Nissan, Toyota, Hyundai and Audi all reported increased sales during May. (more…)

Despite Earlier Concerns, May Car Sales Could be Best in Five Years.

Toyota, Honda, VW expected to deliver strong gains.

by on May.29, 2012

Japanese makers, in particular, appear to be having a very good month. Toyota, in particular, is recovering well from last year's production cuts.

With motorists reportedly flooding dealer showrooms over the long holiday weekend, May could turn out to be the best month since mid-2007 for new car sales – with Japanese automakers Toyota and Honda driving much of the upturn as they recover from last year’s devastating, earthquake-led production cuts.

TrueCar.com, which tracks new car pricing, trends and forecasting, estimated new light vehicle sales in the U.S. — including fleet — should reach 1.401 million, up 32% from May 2011 and an 18.3% increase from April of this year.

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Exactly how strong a month May proves to be will depend on the final sales figures from the long Memorial Day holiday weekend.  But that is expected to offset some apparent weakness in the market earlier in the month.

(more…)

Americans Paying Record Prices for New Cars

Used cars not far behind.

by on Jun.02, 2011

Ford has taken three price hikes this year, one reason it had the highest average transaction price of all major makers in May, analysts report.

There are plenty of reasons why new car sales took a tumble last month – everything from a weak economy to a shortage of some popular Japanese vehicles.  But pricing also appears to have been a significant issue, according to industry analysts, with Americans now paying more than ever for new cars, trucks and crossovers.

The average transaction price – what a typical customer actually pays, as opposed to sticker price or the low come-ons you might see advertised – surged to $29,817 in May, according to the data tracking service TrueCar.com.  That was up a full $608, or 2.1%, from May 2010 and an increase of $215, or 0.7% over April of this year.

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Significantly, prices rose sharply even though many buyers began shifting from larger to smaller vehicles in a bid for better mileage, analysts noted.  Traditionally, U.S. motor vehicle prices are closely linked to the size of an automobile.

And while some potential buyers are rethinking their options, used car prices also are heading skyward.

(more…)