May 2016, U.S. new vehicle sales are expected to fall 5.7% from the same month last year, according to J.D. Power and LMC Automotive. Slow economic growth, stock market volatility and two fewer selling days this year are all contributing factors to the decline. While volume is expected to continue growing in the near term, the growth will begin to weaken, according to industry analysts.
While monthly sales are expected to fall, U.S. new vehicle sales climbed 3.3% this year through April and remain on track to increase for the seventh straight year. The seasonally adjusted annualized rate (SAAR) for May 2016, is also expected to slip to 17.4 million vehicles from 17.71 million in May 2015.
New vehicle incentives are also rising in 2016. Autodata Corporation estimates that average incentives have increased to $3,052 per vehicle, a 14% increase through April compared to 2015 levels for the same time period.