While Cox Automotive experts projected U.S. vehicle sales for May as “healthy,” they also expected a lower result compared to the month prior.
They forecasted that sales are to finish at a seasonally adjusted annual rate (SAAR) of 16.5 million, down from last April’s 18.5 million pace.
“Supply is more than 40% below last year’s levels, and many dealers have little inventory available,” Charlie Chesbrough, senior economist at Cox Automotive, told Cox Automotive's website. “Memorial Day weekend is historically one of the biggest selling periods of the year. What’s historic now is the exceptionally low inventory.”
It was also expected that May sales will drop by 3% from 2019. Sales volume is expected to finish at 1.54 million, which is slightly better compared to a volume of 1.12 million from the same month last year.
A vAuto study revealed that inventory levels in dealerships are 42% less in May 2021 compared to May of last year, which is approximately 1.4 million fewer new vehicles in inventory. The shortage means buyers could have to pay more to get what they want, according to Cox Automotive. The company expects a tight inventory through the rest of the year.
vAuto is a software company that became a part of Cox Automotive in 2014.
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