Affordable Credit Keeps Auto Sales at a Steady Clip in May, Says Edmunds.com


SANTA MONICA, Calif. — May 29, 2014 — Edmunds.com, the premier destination for car shopping, forecasts that 1,547,771 new cars and trucks will be sold in the U.S. in May, for an estimated Seasonally Adjusted Annual Rate (SAAR) of 16.2 million. The projected sales will be an 11.5 percent increase from April 2014 and a 7.3 percent increase from May 2013.

"Credit conditions are making it easier to buy or lease a new car," says Edmunds.com Senior Analyst Jessica Caldwell. "Shoppers are opting for longer terms at lower interest rates. In other words, they're able to afford more expensive cars by keeping their monthly payments at or near what they're used to paying."

SALES VOLUME FORECAST, BY MANUFACTURER
Sales Volume May-14
Forecast
May-13 Apr-14 Change from
May 2013*
Change from
Apr 2014*
GM 269,931 252,894 254,076 6.7% 6.2%
Ford 248,342 246,019 210,355 0.9% 18.1%
Toyota 229,699 207,952 199,660 10.5% 15.0%
Chrysler Group 190,587 166,596 178,652 14.4% 6.7%
Honda 145,001 140,013 132,456 3.6% 9.5%
Nissan 129,552 114,457 103,934 13.2% 24.6%
Hyundai/Kia 127,134 120,685 119,783 5.3% 6.1%
VW/Audi 49,976 51,241 46,484 -2.5% 7.5%
Industry 1,547,771 1,442,551 1,387,677 7.3% 11.5%
*NOTE: May 2014 had 27 selling days, May 2013 had 26 and April 2014 had 26.

Edmunds.com's finance data shows that the average new loan term during the first four months of 2014 was an all-time high of 66 months. And the average interest rate for new loans (4.4%) in 2014 is only slightly higher than the all-time historic lows that have been well publicized within the last two years. Edmunds.com also points to loans secured with lower credit scores and all-time high lease penetration (27.9% YTD, through April) as sure signs that credit continues to loosen.

Edmunds.com estimates that retail SAAR will come in at 13.2 million vehicles in May, with fleet transactions accounting for 18.3 percent of total sales. An estimated 3.05 million used cars will be sold in May, for a SAAR of 36.4 million (compared to 3.10 million — or a SAAR of 35.9 million — used car sales in April).

MARKET SHARE FORECAST, BY MANUFACTURER
Market Share May-14
Forecast
May-13 Apr-14 Change from
May 2013
(Percentage pts.)
Change from
April 2014
(Percentage pts.)
GM 17.4% 17.5% 18.3% -0.1% -0.9%
Ford 16.0% 17.1% 15.2% -1.0% 0.9%
Toyota 14.8% 14.4% 14.4% 0.4% 0.5%
Chrysler Group 12.3% 11.5% 12.9% 0.8% -0.6%
Honda 9.4% 9.7% 9.5% -0.3% -0.2%
Nissan 8.4% 7.9% 7.5% 0.4% 0.9%
Hyundai/Kia 8.2% 8.4% 8.6% -0.2% -0.4%
VW/Audi 3.2% 3.6% 3.3% -0.3% -0.1%

Shoppers in the market right now for a new car are encouraged to check out Edmunds.com's Deals of the Month page where they can find some of the strongest available deals, including 0% financing for up to 72 months on a 2014 Cadillac ATS or $1,000 cash on a 2014 Ford Mustang Convertible.

About Edmunds.com, Inc.
Edmunds.com is a car-shopping Web site driven to make car buying easy. Almost 18 million visitors use our shopping tools every month to connect with over 9,500 dealer franchises across the U.S. Shoppers can browse our inventory listings for available cars and trucks, and with Edmunds.com's Price PromiseSM, they can get an instant, upfront price on those same vehicles. Recently named by Maritz Research as one of the most trusted online consumer review sites - and the only automotive site listed in the top ten - Edmunds.com is also home to comprehensive car reviews, shopping tips, photos, videos and feature stories. Even when you're at the dealership, we're always by your side. Just call our free Live Advice Line at 1-855-782-4711 or use our acclaimed Edmunds.com iPhone and iPad apps or Edmunds.com Android App. We're based in Santa Monica, Calif., but you can connect with us from anywhere by following @Edmunds on Twitter or by becoming a fan of Edmunds.com on Facebook. You can also find us on Instagram, Google+, Pinterest, LinkedIn and Flipboard.

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