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Sales down as automakers adjust strategy after end of tax credits and in face of trade tariffs
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May new-vehicle sales grew by 4.8% from the year-ago period, while average incentive spending per unit grew 6.6% from a year ago to $3,740.
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Despite record incentive spending, the auto industry is on pace to record its weakest first-half sales performance since 2014, according to the two firms. Days to turn remained at 70 through June 18, the highest level since July 2009.
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Not even record incentive spending for the month is expected to keep May retail sales on pace with a year ago, according to the two firms.
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April retail sales are expected to reach 1.17 million thanks to record incentive spending. However, average days to turn continues to rise, with nearly 30% of vehicles sold so far in 2017 having sat on dealer lots more than 90 days.
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Autotrader and Kelley Blue Book reported stronger-than-expected auto sales during the month of November. The overall industry health is looking strong, but the two firms noted several risk factors that could negatively impact the industry as it heads into 2016.
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