May was great month for automotive sales, new vehicles sales increased 4.7% due to light trucks with a seasonally adjusted annual rate of 16.91 million. The increase is attributed to increased Jeep sales at FCA. General Motors doesn’t report monthly sales but researchers report increases. The average transaction of price of vehicle sale hovers between $33,149 and $35,635 depending upon what source. Hyundai and Nissan sales have decrease over last year.
ALG, the industry benchmark for determining the future resale value of a vehicle, projects U.S. revenue from new vehicle sales will reach $51 billion for the month of May, up 6.1 percent from a year ago.
ALG expects a gain of $2.9 billion in revenue for automakers versus 2017. Additionally, incentive spending is projected to increase 1.8 percent year over year and month over month.
“Plot lines are thickening as automakers deploy varying strategies in a strong and stable, but flat, sales environment for 2018,” said Eric Lyman, ALG’s chief industry analyst. “Nissan and Hyundai are maintaining sizeable year over year decreases in spending, right sizing their sales goals to drive long term brand health. Conversely, GM is expected to become the top spending automaker in the industry, surpassing the high dollar amounts seen by BMW and Daimler.”
ATP from ALG & Kelley
ALG estimates ATP for a new light vehicle was $33,149 in May, up 3.2 percent from a year ago. Average incentive spending per unit grew by $177 to $3,679. The ratio of incentive spending to ATP is expected to be 11.1 percent, up from 10.9 percent from a year ago.