Westlake Village, California – U.S. total and retail new-vehicle sales in April 2015 are expected to reach their highest levels for the month since 2005, according to a monthly sales forecast from J.D. Power and LMC Automotive.
New-vehicle retail sales in April 2015 are forecasted to reach 1,179,000 units, a 5% increase compared with April 2014 and the highest retail sales volume for the month since April 2005, when sales hit 1,190,125. Retail transactions are the most accurate measure of consumer demand for new vehicles.
The retail seasonally adjusted annualized selling rate (SAAR) in April is expected to be 13.7 million units, 400,000 units stronger than in April 2014 and the highest SAAR for April since 2005 (13.8 million).
“The industry continues to outperform prior-year levels with respect to retail sales and transaction prices,” says John Humphrey, senior vice president of the global automotive practice at J.D. Power. “The average new-vehicle transaction price so far in April is $30,680, on pace to achieve a new record for the month.”
The current record was set in April 2014 when transaction prices averaged $29,948. The combination of strong sales and high transaction prices positions April to set a new record for the month for consumer spending on new vehicles at approximately $36.2 billion, according to the Power Information Network (PIN) from J.D. Power.
Low gas prices continue to put pressure on car segments, while truck sales have surged. Through April 19, trucks comprised 56% of industry retail sales, up 4.5 percentage points from April 2014 and marking the first time truck sales have exceeded 55% in the month of April since 2004.
Total light-vehicle sales are projected to reach 1,463,700, a 5% increase compared with April 2014 and the highest level for the month since April 2005 when 1,500,624 new vehicles were sold. Fleet volume is expected to hit 284,700 units, accounting for 19.4% of total sales. Through the first four months of 2015, fleet share averages 20.6%, up from 19.5% for the same period in 2014.
LMC Automotive is holding its total light-vehicle sales forecast for 2015 at 17.0 million units, but has reduced its retail forecast to 13.9 million units from its previous outlook of 14.0 million units due to a slight increase in fleet sales.
“Overall, auto sales remain strong, a trend that is sustainable throughout 2015 due to consumer demand that is being fueled by 50 new or redesigned models in showrooms this year,” says Jeff Schuster, senior vice president of forecasting at LMC Automotive. “High year-over-year growth will become more challenging over the next few months, but a slip in the growth rates doesn’t change the underlying positive trend.”
Source: J.D. Power