Interest rates for new vehicles in May dropped to the lowest level seen by the industry in nearly seven years, according to the car shopping experts at Edmunds. The annual percentage rate (APR) on new financed vehicles averaged 4 percent in May, compared to 4.3 percent in April and 6.1 percent a year ago. This is the lowest average interest rate since August 2013, and the third lowest Edmunds has on record dating back to 2002.

Edmunds analysts note that 0 percent finance offers dipped slightly in May compared to April, but still remained at near-record levels; these deals constituted 24 percent of all new financed purchases, compared to 25.8 percent last month. Edmunds data also reveals that 47 percent of all financed purchases received an APR below 3 percent in May, compared to 41.5 percent in April.

“Consumers who purchased a car in May got to take advantage of some of the best deals we’ve ever seen, thanks to a combination of Memorial Day weekend sales and generous incentives offered by automakers to spur demand during the pandemic,” said Jessica Caldwell, Edmunds’ executive director of insights. “Even with 0 percent finance deals down slightly, more car shoppers got better financing rates than usual.”  

Edmunds experts note that loan term lengths sustained near-record highs in May. The average loan term length for a new vehicle was 71.4 months, which is the second highest Edmunds has on record, compared to last month’s average of 73.4 months.

LeasePlan USA, a global fleet management and driver of mobility services, launched a partnership with leading automotive mobile maintenance and repair services provider, YourMechanic. In alliance with YourMechanic’s network of over 700 certified technicians across over 2,500 cities nationwide, LeasePlan now provides contact-free vehicle maintenance services for cars and light-duty vehicles.

In adding a mobile option to their maintenance and repair management offering, LeasePlan provides customers the opportunity to schedule contact-free service on-site at the driver’s home or office location. Using LeasePlan’s new solution, powered by YourMechanic, customers can tap into more than 600 automotive repair services for a safe and convenient experience.

“We’ve been working on a partnership with the team at YourMechanic for some time now. Given the circumstances surrounding COVID-19, the timing was right to implement this contact-free solution for our customers,” said Felipe Smolka, EVP transformation, LeasePlan USA.

Kia Motors America announced May sales of 45,817 vehicles. Demand for Kia’s lineup of SUVs remained strong as Sportage and Sorento topped the sales chart and the all-new Seltos SUV delivered its best performance since going on sale in January.

“With our expanded lineup of award-winning SUVs leading the way, Kia continues to defy expectations and outperform the industry. In fact, Sportage set a new retail sales record for the month of May,” said Bill Peffer, vice president, sales operations, Kia Motors America. “And with several exciting new products debuting in the months ahead and our dealers implementing touchless shopping and servicing practices, we continue to focus not only on exceeding the needs of our customers but also on their health and well-being.”

 

 

MONTH OF MAY

YEAR-TO-DATE

Model

2020

2019

2020

2019

Rio

1,760

2,482

10,041

10,408

Forte

6,603

10,366

33,184

39,076

Optima

5,854

8,300

33,093

39,379

Cadenza

70

105

605

633

Stinger

1,393

1,410

4,824

5,576

K900

25

29

102

174

Soul

6,324

10,713

26,602

46,697

Niro

1,318

2,557

7,067

9,742

Seltos

3,551

N/A

10,442

N/A

Sportage

7,576

8,011

31,597

33,286

Sorento

7,262

8,356

29,603

39,448

Telluride

2,599

6,273

22,512

17,238

Sedona

1,482

1,460

5,795

6,386

Total

45,817

60,062

215,467

248,043

 

 

 

 

 

Mazda North American Operations reported total May sales of 24,933 vehicles, a decrease of 1.0 percent compared to May 2019. Year-to-date sales totaled 103,543 vehicles, a decrease of 10.5 percent. With 26 selling days in May, compared to 26 the year prior, the company posted a decrease of 1.0 percent on a Daily Selling Rate (DSR) basis.

Sales of the CX-9 increased 20.8 percent with 2,421 vehicles sold.  Sales of the MX-5 Miata increased 30.7 percent with 1,102 vehicles sold. CPO sales totaled 6,223 vehicles in May, an increase of 12.6 percent compared to May 2019. Year-to-date CPO sales decreased 10 percent, with 22,134 vehicles sold. Mazda Motor de Mexico reported May sales of 2,324 vehicles, a decrease of 50.0 percent compared to May last year. Year-to-date sales decreased 31.6 percent, with 17,166 vehicles sold.

According to a new report published by ValuePenguin/LendingTree, the Ford F-150, Chevrolet Silverado and Honda Civic are the most searched cars in America. And while searches for cars, especially pickup trucks, trended downward during the onset of the COVID-19 epidemic in the United States, recent data suggests that searches for these popular models may be hitting annual highs. America’s five most searched cars are: Ford F-150; Chevrolet Silverado; Honda Civic; Toyota Tacoma and  Honda Accord.

Outside of the Northeast and California, a pickup truck was the most searched car in every state. High population density in the Northeast is why sedans like the Honda Civic and Honda Accord are more popular, whereas more open space out West and in the rest of the country makes driving a pickup more attractive and accessible.

According to Michael Hoffman, senior research analyst at ValuePenguin, “these findings provide a pulse on consumer demand trends in the U.S. auto industry, at a critical moment for the economy and auto manufacturers following several years of record-breaking vehicle sales.” He adds, “Several manufacturers like GM and Fiat Chrysler have expressed concern that demand may outstrip supply amid factory shutdowns due to the novel coronavirus.”

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