Early reports show that May will be a strong month for new car sales, but when the numbers come out they are likely to show sales being down on a year-over-year basis.
According to Kelley Blue Book (KBB), sales are likely to come in at 1.59 million units this month, which will be down 1%. So what’s with all the optimism? There’s one less day this year to sell cars, trucks and SUVs than last May so the seasonally adjusted annual rate (SAAR) is actually higher (17.3 million versus 16.5 million last May) even though fewer vehicles will leave dealer showrooms.
“May sales will reach the highest total year-to-date, and could remain the highest until December of this year,” said Alec Gutierrez, senior analyst for Kelley Blue Book. “While we expect an overall decline in volume versus last year, the difference is the result of one fewer sales day from May 2014, and total SAAR will reflect year-over-year improvement. (more…)