Posted on 06/05/2017 10:44:07 AM PDT by Lorianne
Industry experts had lowered their forecasts for May auto sales, having been overoptimistic every month this year, always figuring that there would be a year-over-year sales increase, when in fact sales fell every month. So for May, they became practically gloomy, but not gloomy enough.
J.D. Power and LMC Automotive forecast that new vehicle sales in May would inch up 0.5% year-over-year to 1.54 million cars and light trucks. Edmunds predicted that sales would edge up 0.3% to 1.53 million units. And Kelley Blue Book forecast that sales would be essentially flat year-over-year at 1.525 million:
And this is what the industry got:
Total new vehicle sales fell 0.5% in May to 1.519 million light cars and trucks, according to Autodata (number of vehicles sold and delivered by dealers to their customers, or delivered by automakers to their large fleet customers).
The fifth month in a row of year-over-year declines.
Year-to-date sales are down 2%.
New car sales plunged 9.3% to 548,000 and are down 11% year-to-date.
New truck sales rose 6% to 935,170 and are up 4.7% year-to-date. After the April disaster for pickups, Chevy dealers offered discounts of $12,000 on Silverado pickups and Ford dealers offered discounts of $10,000 or more on 2017 model-year F-series pickups and over $14,000 on 2016 F-series pickups which shows just how fat profit margins are on pickups.
The Seasonally Adjusted Annual Rate of sales (SAAR) in May fell 3% year-over-year, to 16.66 million light cars and trucks, the third month in a row below the 17-million mark.
The 71 days supply of unsold vehicles on dealer lots was the highest since July of collapse-year 2009.
Even the highest incentives for any May, estimated at nearly $3,600 per unit sold, could not stem the sales declines.
SNIP
I also would like a bare bone pickup for around 22k. Not going to happen. The people have become entitled to $50,000.00 cars whether they can afford them or not.
And the manufacturers have calculated the break even price for every unit. They have to pay union wages, remember?
My 1995 Subaru wagon finally succumbed after 235k miles. I replaced it with a 1999 Subaru with only 109k miles for $2700. Looking at 100000 trouble free miles.
My 1998 k2500 finally wore out the engine after 200k miles. My solution? Brand new factory guaranteed engine installed for $5k total.
We’ve been doing this the 40 years we’ve been married. Instead of putting our wealth in the driveway we put it into real property. Works for us.
If you buy a new car, it loses 15% of its value as soon as you drive it off the lot. I buy factory certified vehicles, save 30% off the sticker for a low mileage 1-2 year old car with original bumper to bumper warranty. I’ve purchased two this way and wind up getting a lot better car in terms of trim and options than I would have purchased new.
Excellent!
Kia sales (which is part-owned by Hyundai) down 7%, to 58,507.
Hey Hyundai, do you think you may have alienated a lot of men with your commercial making a joke of kicking men in the nuts?
I can honestly tell you I was considering some of your US built models, but not now, and not until you apologize for this commercial.
Just bought the missus a 2014 Caddy SRX. Paid just north of $24K, less than HALF the original sticker price. Two years & 70K miles left on the factory warranty. NICE! Just something about a Cadillac . . .
“As an aside, Fiat sales dropped 16% to just 2,670 units.
Clown cars are selling about as well as I’d predicted ever since the FIAT 500 was introduced in the U.S. with massive orgasmic enemedia slobber and palaver a few years ago.
“I hate to sound like the weasel of the group but does this mean I can get a better deal on a car in the next few months?”
I would think so. Also, this kind of new car inventory depresses used car prices as well, and you might find an even better deal there instead of buying new if you stick to high-quality brands from “good” years.
Picked up a new tundra - smaller - 4.6 liter v8 - over Memorial Day weekend. $31,500. It has the extended but not the max cab.
They gave me a good trade on my old 4 runner.
Bookmark
I’ll drive right down! :)
My wife’s ‘04 Lexus GS still feels new despite the cassette radio that she refuses to change. My ‘05 Volvo XC70 cruises like new at 180K and my ‘07 F150 continues to be a reliable beast.
The Volvo looks the most dated, but even it doesn’t look “old.” The Lexus design has kept modern and the truck is... a truck. Looks great.
I would never have imagined keeping a car 5-7 years much less 10-12 yrs as we have with this batch. I don’t need anything new, don’t miss anything new, and am damned glad that these machines keep rolling so magnificently.
Good revenge here on my parents suffering through crap cars and planned obsolescence so many years. Well done, Motor City!
Bfl
“The first company to put a $22k pickup on the market(underpowered and without the fancies) will get very, very rich.”
They won’t in W. Texas and other places where people use their trucks.
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