• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • The Rearview Mirror: Triumph of the Bean Counters
  • VW Teases U.S. Version of ID.Buzz — and Here’s What We Know About the Electric Microbus
  • Make Sure You're Good to Go for the Holiday Weekend
  • Hyundai, LGES Building $4.3B EV Battery Plant in U.S.
  • New Vehicle Sales Set to Rise, Used Vehicle Sales Expected to Drop in May
  • Ford Teaming with Tesla to Make Charging Even Easier
  • Q&A: VinFast CEO Van Anh Nguyen Talks Tough Reviews, Tough Learning Curve, Bright Future
  • Stellantis Invests in new Lithium-Sulfur EV Battery Tech
  • The Safest Cars For Your Teenage Driver
  • Honda Teams with Aston Martin in Formula One Return
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
      • Feeder
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2023 Electrified GV70 AWD Prestige
    • A Week With: 2023 BMW XM
    • A Week With: 2023 Mercedes-Benz GLS 580 4Matic
    • First Drive: 2024 Audi Q8 e-Tron Prestige
    • First Drive: 2024 Volvo C40 Recharge Single Motor
    • A Week With: 2023 Ford Bronco Everglades Edition
    • First Drive: 2024 Kia Seltos
    • A Week With: 2023 Volvo V60 Cross Country B5 AWD
    • 2023 Kia Sportage PHEV X-Line Prestige AWD
    • First Drive: 2023 VinFast VF 8 City Edition
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automakers > May Sales to Drop as Fleet Sales Collapse

        May Sales to Drop as Fleet Sales Collapse

        Deferred rental car sales to cut at least 1M from 2020.

        Joseph Szczesny
        Joseph Szczesny , Executive Editor
        May 27, 2020
        Automakers are looking at 32% sales decline in May, exacerbated by the drop in fleet sales led by rental car companies not buying new vehicles.

        New vehicle sales are expected to drop by almost a third in May, dragged down by the collapse of fleet sales highlighted by the recent bankruptcy by Hertz.

        ALG Inc., a subsidiary of TrueCar Inc., expects new vehicle sales will reach 1.008 million units in May 2020, down 32% from a year ago. This month’s seasonally adjusted annualized rate for total light vehicle sales is an estimated 11.8 million units, a level last seen during the Great Recession.

        Excluding fleet sales, ALG expects U.S. retail deliveries of new cars and light trucks to be 1,008,916 units, a decrease of 21% from a year ago.

        (Hertz Chapter 11 filing poses challenge for automakers – and used car buyers.)

        Buyers are finding a slew of new opportunities to buy new vehicles using the internet.

        Fleet sales, one the other hand, are expected to drop 21%. Rental companies, led by Hertz, have stopped buying new vehicles in response to the collapse of the travel industry and state and local governments are being forced to rein in spending for police cars, vans and other vehicles as they cope with the fallout from the pandemic.

        Eric Lyman, chief industry analyst for ALG, a subsidiary of TrueCar, said the stronger than expected retail signs have given the industry a lift. The Memorial Day holiday weekend is traditionally a strong selling period for automakers.

        “The automotive industry is showing positive signs of a rebound and, while we are projecting a 21% decline in retail sales for May under this unprecedented environment, it’s quite encouraging,” he said.

        (Rental car companies slash order, deliver another blow to auto industry.)

        “Our own consumer research has shown that 72% of car shoppers state that their need for a vehicle has remained the same or increased due to the pandemic,” Lyman added.

        Automakers have been struggling for years to increase internet sales and now the pandemic has driven buyers to the online option.

        He noted that consumers are also discovering – and enjoying – the convenience of buying a vehicle on the internet. There are a variety of online options that dealers across the U.S. are offering. Additionally, after struggling for so many years to find ways to use the internet to bolster sales, they’ve found ways to overcome bottlenecks, such as vehicle delivery, remote paperwork and home test drives.

        “Brands like Hyundai and Volkswagen are showing the lowest levels of declines in total retail unit sales due to their robust product lines with strong deferred payment options, low interest rates, and job loss programs. These types of offers are resonating with consumers and raising confidence in the marketplace,” Nick Woolard, director of OEM and Affinity Partner Analytics at TrueCar.

        (U.S. new car sales continue rebounding — but industry isn’t out of the woods yet.)

        When all the sales in May are counted, the SAAR is expected to decrease 32% from a year ago from 17.4 million units to 11.8 million units.

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published

        The Rearview Mirror: Triumph of the Bean Counters

        May 27, 2023
        VW tease for ID Buzz three row

        VW Teases U.S. Version of ID.Buzz — and Here’s What We Know About the Electric Microbus

        May 26, 2023
        Hyundai and LGES handshake for GA battery plant REL

        Hyundai, LGES Building $4.3B EV Battery Plant in U.S.

        May 26, 2023

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2023
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: