{"id":148161,"date":"2020-05-27T09:51:27","date_gmt":"2020-05-27T13:51:27","guid":{"rendered":"https:\/\/www.thedetroitbureau.com\/?p=148161"},"modified":"2020-05-27T10:21:07","modified_gmt":"2020-05-27T14:21:07","slug":"may-sales-to-drop-as-fleet-sales-collapse","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2020\/05\/may-sales-to-drop-as-fleet-sales-collapse\/","title":{"rendered":"May Sales to Drop as Fleet Sales Collapse"},"content":{"rendered":"
\"\"<\/a>
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.<\/figcaption><\/figure>\n

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.<\/p>\n

ALG Inc., a subsidiary of\u00a0TrueCar Inc., expects new vehicle sales will reach 1.008 million units in\u00a0May 2020, down 32% from a year ago. This month\u2019s seasonally adjusted annualized rate for total light vehicle sales is an estimated 11.8 million units, a level last seen during the Great Recession.<\/p>\n

Excluding fleet sales, ALG expects\u00a0U.S.\u00a0retail deliveries of new cars and light trucks to be 1,008,916 units, a decrease of 21% from a year ago.<\/p>\n

<\/p>\n

(Hertz Chapter 11 filing poses challenge for automakers \u2013 and used car buyers.)<\/a><\/strong><\/span><\/em><\/p>\n

\"\"<\/a>
Buyers are finding a slew of new opportunities to buy new vehicles using the internet.<\/figcaption><\/figure>\n

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.<\/p>\n

Eric Lyman, chief industry analyst for ALG, a subsidiary of\u00a0TrueCar, said the stronger than expected retail signs have given the industry a lift.\u00a0The Memorial Day holiday weekend is traditionally a strong selling period for automakers.<\/p>\n

\u201cThe 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\u2019s quite encouraging,\u201d he said.<\/p>\n

(Rental car companies slash order, deliver another blow to auto industry.)<\/strong><\/em><\/a><\/span><\/p>\n

\u201cOur 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,\u201d\u00a0Lyman added.<\/p>\n

\"\"<\/a>
Automakers have been struggling for years to increase internet sales and now the pandemic has driven buyers to the online option.<\/figcaption><\/figure>\n

He noted that consumers are also discovering \u2013 and enjoying \u2013 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\u2019ve found ways to overcome bottlenecks, such as vehicle delivery, remote paperwork and home test drives.<\/p>\n

\u201cBrands like Hyundai and\u00a0Volkswagen\u00a0are 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,\u201d\u00a0Nick Woolard, director of OEM and Affinity Partner Analytics at\u00a0TrueCar.<\/p>\n

(U.S. new car sales continue rebounding \u2014 but industry isn\u2019t out of the woods yet.)<\/strong><\/em><\/a><\/span><\/p>\n

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.<\/p>\n","protected":false},"excerpt":{"rendered":"

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, reports TheDetroitBureau.com.<\/p>\n","protected":false},"author":20009,"featured_media":138891,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5],"tags":[],"make":[],"post-state":[],"category_old":[118,150,151,123,133,131,132,129,283,124,139,148,128,278,288],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/148161"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/20009"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=148161"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/148161\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/138891"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=148161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=148161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=148161"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=148161"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=148161"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=148161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}