U.S. new vehicle sales continue to decline in April, with total end-of-the-month figures anticipated to be among the worst in three decades due to the COVID-19 pandemic, according to Edmunds.
They are predicting that 633,260 new cars and trucks will be sold in the U.S. for an estimated seasonally adjusted annual rate (SAAR) of 7.7 million. This translates into a 52.5% decrease in sales year-over-year, and a 36.6% decline from the previous month. The lowest-volume sales month dates back to at least 1990, while the second worst sales month was January 2009.
“April auto sales took the biggest hit we’ve seen in decades,” said Jessica Caldwell, Edmunds’ executive director of insights. “These bleak figures aren’t just because consumers are holding back on their purchases — fleet sales are seeing an even more dramatic drop as daily rental business has dried up. Like many other industries, the entire automotive sector is struggling as the coronavirus crisis continues to cripple the economy.”
The potential ease or lifting of stay-at-home orders from state governors in May could lead to opportunities for deferred demand for both automakers and dealers, according to Edmunds. But economic uncertainty is anticipated to remain for some time.
“April is likely the bottom for auto sales, so hopefully there’s only room for improvement from here,” said Caldwell. “But with employment and consumer confidence at new lows, the question remains: Will people be in the position to purchase new cars? Although automakers are doing their part by offering landmark incentives, those might not be enough if consumers cannot recover financially from this crisis.”
The retail SAAR for April is estimated to hover around 6.7 million vehicles, with fleet transactions accounting for 13.0% of total sales, according to Edmunds.
