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Forbes Lifestyle Cars & Bikes High Demand And More Cars In Stock Create A Big Increase In May Auto Sales Jim Henry Contributor Opinions expressed by Forbes Contributors are their own. I cover the pervasive, yet little-understood auto industry. Following May 30, 2023, 02:06pm EDT | Press play to listen to this article! Got it! Share to Facebook Share to Twitter Share to Linkedin Volvo factory in South Carolina Photo: Volvo Forecasters expect a substantial increase of around 20% in U.S. auto sales in May, vs. May 2022 — thanks to strong consumer demand and a bigger supply of new vehicles, and despite record-high new-vehicle prices , and rising interest rates . It’s also important to point out, sales were down sharply in May 2022. Statistically, that exaggerates the increase in May 2023. LMC Automotive said last year that U.S. auto sales fell 29% in May 2022, vs. May 2021. According to a joint forecast from LMC Automotive and J.D. Power , new-vehicle sales in May 2023 should be around 1.3 million. A separate forecast from Cox Automotive calls for a closely similar number, which rounds up to 1.4 million. Both forecasts are based on new-vehicle shopping data, though the first part of May. What’s changed from May 2022 to May 2023, is a 48% increase in the supply of new vehicles, to about 1.3 million units, according to LMC and J.D. Power . What hasn’t changed — at least, hasn’t changed very much — is that despite the increase in supply, the average new-vehicle transaction price is still at a record high for the month. The average transaction price for May 2023 is an estimated $45,838. That’s a record for the month of May. The thin slice of good news for consumers is that’s an increase of only 0.7% vs. a year ago, so at least the rate of increase is slow. MORE FOR YOU There’s Something Fishy About ‘The Little Mermaid’ Audience Review Scores — Update — The Critics Must Be Crazy Here Is The Leaked Allegedly Final MCU Fantastic Four Cast It s A Big Deal Crypto Suddenly Braced For A Huge China Earthquake After Bitcoin Ethereum BNB XRP Cardano Dogecoin Polygon And Solana Price Swings The average transaction price in May is also down from the all-time highest average transaction price for any month, of $47,362, in December 2022. The average incentive per new vehicle is up, but still low by historical standards. According to LMC and J.D. Power, the average new-vehicle incentive in May is $1,788. That’s an increase of about 88% vs. a year ago. As a percentage of the average manufacturer’s suggested retail price, the estimated average incentive in May is 3.7%, vs. 2.1% a year ago. Jim Henry Editorial Standards Print Reprints & Permissions
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