J.D. Power Forecasts New-Car Sales Dip

By Staff Writer May 26, 2022

New-vehicle retail sales for May 2022 are expected to decline when compared with May 2021, according to a joint forecast from J.D. Power and LMC Automotive. Retail sales of new vehicles this month are expected to reach 1,013,700 units, a 20.9% decrease compared with May 2021 when adjusted for selling days. May 2022 has two fewer selling days compared to May 2021. Comparing the same sales volume without adjusting for the number of selling days translates to a decrease of 27.0% from 2021.

“May results reflect a continuation of what has become the norm for the U.S. new-vehicle sales environment,” said Thomas King, president of the data and analytics division at J.D. Power.

Jonathan Banks, a vice president for J.D. Powers.

“For the 12th consecutive month, month-ending retail inventory will be below one million vehicles. The industry sales pace is being dictated by how many units are delivered to retailers during the month, and demand far exceeds supply. Record transaction prices are the result.”

On the used-car side, prices remain strong, according to Jonathan Banks, a vice president for J.D. Powers.

 “Used-vehicle prices are booming in May as the industry continues working through ongoing new-vehicle inventory challenges,” Banks said. “Wholesale prices are expected to rise 1.6%, marking the third-strongest performance of the month of May in the past 20 years. May will be the third consecutive month in which wholesale prices increase, placing them 37.2% higher year-to-date than a year ago. On the retail side of the market, used prices remain near April 2022's all-time high, while used vehicles continue to fly off dealer lots at a rapid pace. Used retail prices are averaging more than $31,000 per unit, a figure approximately 14% higher than May 2021, while days to turn fell to a skeletal 39 days.”

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Last modified on Tuesday, 07 June 2022 11:55