The automotive industry showed strong growth throughout this year, and according to a recent report, the month of May will be no different.
J.D. Power & Associates' Power Information Network and LMC Automotive recently released a report on what May's final numbers will show as far as vehicles sales are concerned. According to the report, total sales are expected to be above the 15 million-unit selling rate by the end of the month.
New vehicle retail sales are expected to hit 1,157,900 vehicles by month's end, representing a seasonally adjusted annualized rate of 12.5 million units. The report noted that that is the highest SAAR since January and the third consecutive month in which retail sales have been above 1 million units.
The full sale picking market has shown considerable gains, which is common when a housing market is showing robust growth. According to J.D. Power and LMC Automotive the full-size pickup truck segment will account for 11.4 percent of the entire automotive industry's retail sales, an 11 percent increase on a month-over-month comparison and a 9.7 percent increase on a year-over-year comparison.
"Collectively, these components mean that while industry new-vehicle transaction prices have risen by 19 percent during the past six years ($28,921 in May 2013 from $24,404 in May 2008), the average monthly payment for new-car buyers and lessees has increased only 3 percent ($455 in May 2013 vs. $443 in May 2008)," said John Humphrey, senior vice president of the global automotive practice at J.D. Power & Associates. "This market dynamic is enabling consumers to purchase new vehicles with improved fuel economy, safety and technology at an affordable monthly payment."
KBB confirms: May vehicle sales to be strong
Kelley Blue Book issued a similar report expecting that new-car sales will reached 15 million units on a seasonally adjusted annual rate by the end of May, accounting for a 6 percent increase on a year-over-year comparison. KBB noted that with Memorial Day weekend, new car dealers will be offering incentives to get people in the door, helping boost the sales numbers at the end of the month.
"The Big Three will continue to benefit from a strong pickup truck market, with each domestic automaker anticipated to post gains slightly better than the overall industry average," said Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book. "Meanwhile, Nissan is expected to post the single largest gain in sales this month, thanks to strong demand for the redesigned Altima, Sentra and Rogue, each of which experienced an increase of greater than 30 percent in sales last month."
KBB also attributed much of the strong sales in May to the growing truck segment. They expect full-size pickup trucks to be up 19.9 percent. Those with a pickup truck or considering buying a new pickup truck should look into Husky Liners® mud guards.
List of family vehicles
KBB also recently released a list of the 10 Best Family Cars of 2013 for those interested in something other than a pickup.
"Show us 10 families and we'll suggest a different car for each, but all of those vehicles will score high in areas like safety, roominess, comfort and value," said Jack Nerad, executive editorial director and executive market analyst for Kelley Blue Book's KBB.com. "Our annual list is aimed at helping families find the right ride and always includes something for everyone, with a special nod to the best of what's new."
The No. 1 family car on KBB's list is the Nissan Pathfinder. From there, the cars on the list, in order, are: the Honda Accord, Toyota Prius V, Volkswagen Passat, Honda Odyssey, Toyota Avalon, Ford Fusion, Honda CR-V, Nissan Altima and Chevrolet Suburban.