Economy, pent-up trade-in demand cited in forecasts
David Shepardson - DETROITNEWS
- May 25, 2012
Auto sales may jump as much 30 percent in May as lower gas prices bring more truck buyers to showrooms, auto analysts said Thursday.
TrueCar.com predicts May sales will be up 32 percent from a year ago, and up 18.3 percent from last month. It also predicts average incentive spending per unit will be about $2,392 in May, up 4 percent from a year ago.
"Pent-up demand continues to fuel auto sales at a steady and sustainable level in May," said Jesse Toprak, vice president of market intelligence for TrueCar.com.
"All major manufacturers will see double-digit growth this month."
Barclays Capital said it expects May sales to be at a 14.4 million sales rate this month about 30 percent over last May which would keep the U.S. on pace for about 14.5 million vehicles sold in 2012.
"We expect sales to be supported by the improving economy
, an improving financing environment and the high pent-up trade-in demand from former new car buyers of 2004-08 who still own their vehicles," said the research note from Barclays auto analyst Brian Johnson.
Auto sales have been a major bright spot in the U.S. economy, accounting for half of the first-quarter 2.2 percent growth in gross domestic product... [Read More]