Generous incentives helped drive more consumers back to the market
SANTA MONICA, CA — May 28, 2020 — The car website Edmunds says that generous financing offers and incentives during Memorial Day weekend helped give the auto industry a much-needed boost in May, forecasting that 1,074,542 new cars and trucks will be sold in the U.S. for an estimated seasonally adjusted annual rate (SAAR) of 11.8 million. This reflects a 32.5% decrease in sales from May 2019, but a 50.5% increase from April 2020.
“We can safely say that April was the bottom for auto sales during the coronavirus pandemic,” said Jessica Caldwell, Edmunds’ executive director of insights. “There’s still a long road to recovery ahead, but May auto sales are a really encouraging sign for the industry. The unprecedented deals broadcast by automakers and dealers really did the trick in getting more consumers to reenter the market, social distancing and all.”
Edmunds experts note that automakers have already begun to dial back some of the more generous financing incentives made available at the start of the crisis; consumer demand continues to grow and inventory could begin to dwindle as auto manufacturers work on getting their factories safely and consistently up and running.
“The best car shopping deals of the summer are happening right now and they’re not going to last,” said Caldwell. “If you’re in the market for a new car, now is the time to pull the trigger. Once automakers start to pump the brakes on their incentive spending, many cash-strapped Americans will be left in the lurch.”
Here its what Edmunds predicts- a 50% increase from April’s dismal numbers
