Retail Auto Sales in May Shaping Up To Be Highest So Far in 2015

For the month of May, U.S. new-vehicle retail sales, on a selling-day-adjusted basis, are expected to hit their highest levels since August 2014, according to a monthly sales forecast from J.D. Power and LMC Automotive. The new-vehicle retail seasonally adjusted annualized selling rate (SAAR) in May is expected to be 14.1 million units--slightly above the level reached in May 2014 and the first time the retail SAAR has reached 14.1 million units since August 2014.

According to the forecast for May 2015, new retail car sales are likely to reach 1,300,600 units, an increase of 2% on a selling-day adjusted basis over May 2014. The sales pace of 50,000 units per day in May 2015 is the strongest daily selling rate in the month of May since 2004, when daily sales averaged nearly 53,000 units.

"The industry continues to outperform prior-year levels with respect to retail sales and transaction prices," said John Humphrey, senior vice president of the global automotive practice at J.D. Power. "The average new-vehicle retail transaction price so far in May is $30,428, on pace to achieve a new record for the month."

The previous May record was set in 2014, when retail transaction prices averaged $29,400.

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