Analysts and experts have high expectations for this year’s May, predicting higher sales than in recent years and the quota could be substantially buoyed by the sales on offer for the Memorial Day weekend.
According to TrueCar, for example, which is forecasting a Seasonally Adjusted Annual Rate, or SAAR, of 16.1 million cars for May, a 6% jump for the period, new light vehicle sales could reach 1.52 million cars, a growth of 5.5% over last year’s May and also a 9.5% jump from the sales accounted in April 2014.
“The industry is back to the level we expected at the beginning of the year,” said Larry Dominique, President of data tracking service ALG, and Executive Vice President of TrueCar. “Chrysler, GM and Nissan are all benefiting from increased demand. They are showing higher sales and are able to pull back on incentive spending,” he added.
John Humphrey, senior vice president of the global automotive practice at J.D. Power and Associates subscribed to the idea, saying that May’s sales could very well hit their best retail performance in the last decade.
“The record level of consumer spending reflects a combination of record transaction prices in May—which, at $29,600, are up $800 from the previous May high of $28,795 set in 2013—and the best retail sales since May, 2004,” Humphrey commented.
J.D. Power predicts US consumers would spend no less than $37 billion for new car purchases in May alone, which would thoroughly overcome the best May – in 2004 buyers cashed out $34.3 billion for their car purchases.