FI showroom red and grey logo
MenuMENU
SearchSEARCH

SAAR Returns to 17M on Stronger May Sales

U.S. dealers sold slightly fewer new vehicles last month than in May of 2018, but the annual forecast increased to 17.4 million units — thanks in no small part to strong fleet sales.

Tariq Kamal
Tariq KamalFormer Associate Publisher
Read Tariq's Posts
June 4, 2019
SAAR Returns to 17M on Stronger May Sales

U.S. dealers sold 35,702 new vehicles bearing the Volkswagen marque last month, a 14.4% improvement from May of 2018. Sales of the Atlas SUV (above) have grown 24% year-to-date.

Photo courtesy Volkswagen AG

3 min to read


(Bobit) — U.S. sales of new light vehicles registered a year-over-year decline for the fifth straight month in May, but strong fleet sales helped contain the damage, helping the seasonally adjusted annualized rate grow to 17.4 million, according to factory reports and estimates gathered by Automotive News.

Sales of all new vehicles totaled 1,587,335 in May, 0.3% fewer than the same month a year ago. But fleet sales are up 7% year-to-date, slowing the overall rate of decline to 2.4% from 3.2% at the end of April. The SAAR rose accordingly, up 5.2% month-over-month and exceeding the 17 million-unit mark after slipping below it to start the second quarter.

Ad Loading...

Cox Automotive’s senior economist, Charlie Chesbrough, said “huge” month-to-month swings have made accurate forecasts difficult so far this year.

“Still, there’s no denying many of the economic indicators we follow support strong sales: Consumer confidence is high; interest rates, although higher than year-ago levels, have mostly stabilized; employment is near record lows; the stock market, while volatile, is up year-to-date,” Chesbrough said. “With those positive indicators in place and new tax laws that benefit fleet buyers, a stronger-than-expected May should not be a total surprise.”

Results were mixed among the Detroit 3. Ford (-4.1%) and General Motors (-1.2%) both declined while Fiat Chrysler Automobiles eked out a 2% gain fueled primarily by a 29.4% increase at its Ram division. Fiat (-28.9%), Chrysler (-26%), and Jeep (-7.2%) all declined.

Mini (-33.2%), Mitsubishi (-21.5%), Mazda (-16%), and Jaguar (-14.6%) were among the manufacturers reporting lower year-over-year sales; Mitsubishi was up 37% in March before declining 13% in April.

Genesis led all major manufacturers with a 115% improvement from May 2018. Tesla is believed to have grown sales by 16.9%; Volkswagen reported a 14.4% gain.

Ad Loading...

Edmunds reports average interest rates fell to 6.1% last month — a new low for 2019 — undoubtedly helped by zero-percent Memorial Day weekend offers. J.D. Power reported average incentive spending grew 0.7% to $3,722. Kelley Blue Book analysts say average transaction prices fell 0.6% month-over-month but were 3.7% higher than in May of 2018.

“Incentives levels, as they often do, have been tracking upward through the spring. In May, the level of incentives offered by the automakers was at its highest point in 2019, but below the level we saw in May 2018,” said Brad Korner, general manager, Cox Automotive Rates and Incentives. “Both Chevrolet and Ram greatly increased incentives on full-size pickups in May and added zero percent financing deals for up to 72 months on 2019 model-year trucks, which likely helped drive traffic. Ford got more aggressive on incentives as well, indicating the pickup truck incentive wars are raging on as more models — including the Ford Ranger and Jeep Gladiator — enter the market.”

To read the full Automotive News report, click here.

Originally posted on Auto Dealer Today

More Showroom

inside of car, view of steering wheel with hands on it driving
Showroomby Lauren LawrenceMay 29, 2026

Affordable, Safe Cars for Teen Drivers

Families looking to balance affordability and safety in vehicles for their teen drivers can look to the updated list of recommended vehicles by IIHS and Consumer Reports.

Read More →
Gray-scale photo of a line of Mini cars in a dealership parking lot
Showroomby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
exterior daytime image of Porsche North Miami dealership
Showroomby Lauren LawrenceMay 22, 2026

Holman Opens Porsche Dealership in Miami

The North Miami store features the brand’s signature Destination Porsche design concept, combining contemporary architecture and technology to create what the auto group calls an ultra-luxury experience.

Read More →
Ad Loading...
Outside of a Cadillac dealership.
Showroomby Lauren LawrenceMay 20, 2026

Chicago to Gain Cadillac Rooftop in 2027

The two-story Cadillac dealership is being constructed at the former Lincoln Yards site, owned and operated by Canada-based Jack Carter Auto Group.

Read More →
Photo of sold Ford store exterior
Showroomby Hannah MitchellMay 11, 2026

Mid-Atlantic Ford Store Has New Owner

A growing Maryland automotive group is only the 93-year-old dealership’s third owner after its longtime proprietors retired.

Read More →
groundbreaking ceremony for new Barrington Porsche dealership with Murgado Automotive Group and Joseph Nicholas Construction
Showroomby Lauren LawrenceMay 11, 2026

Porsche Dealership Breaks Ground in Illinois

Barrington Porsche will be the new location for Murgado Automotive Group’s existing Porsche dealership currently in the Motor Werks of Barrington auto mall.

Read More →
Ad Loading...
aerial view of Fireside Honda in Ohio
Showroomby Lauren LawrenceMay 6, 2026

Michigan Auto Group Acquires Ohio Rooftops

Feldman Automotive Group added two new brands, Honda and Toyota, to its portfolio with its latest acquisition of four Fireside dealerships in Ohio.

Read More →
Photo of Scout Terra pickup truck outside farm building
ShowroomMay 4, 2026

California VW Dealers Go After Scout

The franchisees’ state-level actions follow a California auto dealers trade group lawsuit against the VW affiliate last year, both efforts to stop the EV maker’s plan to sell direct to consumers.

Read More →
Photo of rear of Mercedes VLE passenger van
Showroomby Hannah MitchellApril 27, 2026

EVs Gain Traction in Europe

First-quarter auto sales increased as more consumers took advantage of government incentives. Hybrid deliveries are leading the way on the electrifieds boom.

Read More →
Ad Loading...
road winding through redwood trees, California EV Market Cools, F&I and Showroom logo
Showroomby Lauren LawrenceApril 22, 2026

California Holds EV Lead Despite Annual Decline

At nearly 14%, California had the lowest zero-emission vehicle market share in the first quarter since the fourth quarter of 2021, according to the California New Car Dealers Association.

Read More →