ALG, Inc., a subsidiary of TrueCar, Inc. projects total US new vehicle sales will reach 1,303,826 units in August 2020, down 15% from a year ago when adjusted for the same number of selling days.
This month’s seasonally adjusted annualized rate (SAAR) for total light vehicle sales is an estimated 15 million units. Excluding fleet sales, ALG expects U.S. retail deliveries of new cars and light trucks to be 1,187,140 units, a decrease of 11% from a year ago when adjusted for the same number of selling days.
“The automotive industry momentum continues in August as the industry claws back more and more new vehicle sales each month since sales bottomed out in April,” said Eric Lyman, Chief Industry Analyst for ALG, a subsidiary of TrueCar. “When you take into consideration that part of Labor Day weekend fell in August last year and this year it’s fully falling in September, it’s an even better story, with sales only dipping slightly year-over-year. When it comes to retail sales, we are consistently seeing that the automakers with the strongest SUV, crossover and truck lineups coupled with healthy inventory levels are continuing to outpace the brands that do not.”
“Used vehicle sales are actually up year-over-year, as consumers turn toward the used car market for cost savings during these uncertain economic times, and also due to some supply shortages on the new vehicle side,” added Lyman. “While this heightened demand is creating upward pressure on used retail prices, it is making it a great time for consumers to get top value on a trade-in on popular used vehicles.”
Additional Insights: (Forecast by ALG)
- Total retail sales for August 2020 are expected to be down 11% from a year ago and up 6% from July 2020 when adjusted for the same number of selling days.
- Fleet sales for August 2020 are expected to be down 41% from a year and up 8% from July 2020 when adjusted for the same number of selling days.
- Total SAAR is expected to decrease 11% from a year ago from 16.8 million units to 15 million units.
- Used vehicle sales for August 2020 are expected to reach 3.6 million, up 4% from a year ago and up 2% from July 2020.
“While retail sales for most automakers are up month-over-month, Kia is setting itself apart from the pack, as one of the only automakers that is up year-over-year,” said Nick Woolard, Director of OEM Analytics at TrueCar. “Most of Kia’s portfolio is back to selling at pre-Covid-19 levels. Despite the Telluride, one of their most popular models, being in short-supply, Kia’s strong lineup with some of their newer SUV products such as the recently launched Seltos, is contributing to their strong gains.”
“Volkswagen is also showing strong recovery, thanks to its strong incentive offerings for consumers. While many automakers are scaling back on zero percentage offers for 84 months, Volkswagen is presenting one of the stronger programs to consumers with zero percentage financing for up-to 72 months on most VW models,” added Woolard. “Volkswagen’s strong crossover lineup with the Atlas Cross Sport and 3-Row Tiguan are successfully contributing to the industry’s appetite for utility vehicles.”