ARLINGTON, Va.—Total vehicle sales fell again in May to the lowest figure since August.
Sales during the month slowed to a seasonally adjusted 16.9 million annualized units from April's rate of 17.2 million annualized units. NAFCU Chief Economist and Vice President of Research Curt Long said he expects the decline to continue in coming months, and a similar forecast was offered during CU Direct’s recent Drive 18 conference.
"Vehicle sales currently face several headwinds including higher borrowing costs and tightening access to credit," said Long in a Macro Data Flash report. "The average APR on new vehicle purchases was 5.75% last month, up over 70 basis points from a year prior. The new-car segment also faces increasing competition from the used-car market. The outlook for vehicle sales remains dim as demand is drying up and more rate hikes are likely in store."
According to data from Autodata Corp., monthly sales levels were up 0.7% from a year ago, Long said.
Car sales held at 5.4 million annualized units during May. Although sales of light trucks also declined from 11.7 million to 11.5 million annualized units during the month, Long noted these sales buoyed the market.
“General Motors' May sales figures are not available as the company recently announced it would switch from a monthly reporting schedule to a quarterly one. Fiat Chrysler Automobiles' sales were 11% higher than a year ago, and Honda (+3.1%) and Ford (+0.7%) also saw gains. Nissan's sales fell during May 4.1%, as did Toyota's (-1.3%),” said Long.