May 2024 U.S. Auto Sales

Those automakers that report on a monthly basis saw sales go up substantially in May, and I suspect if we were able to see the other car company’s sales, the new would even be better.  Based on May sales, the seasonally adjusted sales rate topped 16 million for the first time this year.  In fact, every reporting automaker was up in May versus May of 2023 with the exception of Acura and Volvo.

Ford saw sales increases of electric vehicles and hybrids, although gasoline-powered pickup sales we off slightly.  Toyota said that hybrid and plug-in hybrids reached 39% of their sales last month, which is a new record.

On electrics, sales so far this year reached an all-time high of 8.8% of total sales in America, but dropped back to just over 8% in May, in spite of continued lower prices and big incentives being offered.  This explains why many automakers are going full-speed ahead trying to produces all the hybrids they possible can.

Average transaction prices fell to just over $45,000 in May, down $1,045 from a year ago.  The transaction prices would actually be lower if more people opted for factory rebates, but many are choosing subvented interest rates instead, given the high prime interest rate.

New vehicle inventory levels are up a whopping 53% from May of 2023, which will make this entire summer a buyers market.  Dealers are overstocked as I have been saying on the Car Pro Radio Show and automakers will have no choice but to keep incentives high and interest rates low.