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May car sales expected to be highest yet in 2015
By Kalea Hall
YOUNGSTOWN
Things just keep rolling in a positive direction for the auto industry: Sales are strong and incentives are down.
Analysts predict a slight decline in car sales this month compared with last May, but only because there is one fewer sales day.
When adjusted, car sales should show an increase year over year.
“Retail sales ramped up this month, with strong holiday promotions pulling in shoppers ready to start the summer with a brand-new vehicle,” said Eric Lyman, vice president of industry insights for TrueCar.
Automakers are to release their May sales figures Tuesday,
TrueCar analysts predict new vehicle sales, including fleet sales, could dip 0.9 percent to 1.59 million units. But on a daily selling rate basis, deliveries could increase 2.9 percent.
Retail sales, or sales to the consumer, are expected to come in at about 1.32 million units for a 2.4 percent increase from last may, according to TrueCar.
TrueCar expects the seasonally adjusted annualized rate or SAAR to come in at 17.4 million units – the highest it has been this year.
Automakers’ incentive spending averaged $2,661 per car in May – down 0.4 percent from a year ago, according to TrueCar’s data.
TrueCar analysts expect General Motors to see a 3.1 percent increase in units sales.
Kelley Blue Book analysts estimate the industry will see a 1 percent decline year-over-year because of the one fewer sales day. Total new vehicle sales are expected to come in at 1.59 million units, and KKB analysts predict a SAAR of 17.3 million.
KBB analysts suggest this month could have the highest amount of sales until December.
GM sales are expected to come in slightly below last year’s at 282,000, but when adjusted for one fewer sales day, all auto manufacturers should see an increase.
Small and midsize utility vehicles are still on trend, which will lead to a drop of up to 5 percent in sales for small and midsize cars. The Lords-town-built Chevrolet Cruze is a part of the small-car segment.
Still, business has been solid for Greenwood Chevrolet in Austintown.
“It looks like our new-car sales will be up substantially over last year,” said Greg Greenwood.
Greenwood expects June to be another solid month across the auto industry, given the optimism he has seen from consumers.
Business has been steady for Mark Thomas Ford in Cortland, and Sales Manager Steve Bott expects the automaker to continue rolling along.
“We have a lot to be proud of,” Bott said. “People who used to never give Ford a sniff are coming in and driving out in Fords.”