New car sales forecast to plummet 20.9% in May, as supply remains low

5/26/2022 7:01:00 AM

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Cars, Auto Sales Forecasted To Plummet 20.9% İn May - Cnn

Retail sales of new cars are forecast to fall 20.9% this month compared to the same time last year, amid vehicle shortages and sky-high prices, according to the automotive research firms J.D. Power and LMC Automotive

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Washington, DC (CNN)Retail sales of new cars are forecast to fall 20., and new home sales are a leading indicator for the sector as they are counted at the signing of a contract.New 2021 Volkswagen Golf R Estate arrives with 316bhp With the venerable EA888 2.Tarrant County Sheriff's Deputies said that they responded to reports of a multi-vehicle accident at 9900 W IH-20 at about 12:54 p.

9% this month compared to the same time last year, amid vehicle shortages and sky-high prices, according to the automotive research firms J.D. It has surged, averaging 5. Power and LMC Automotive. Volkswagen has even gone so far as to integrate a raft of new design and technical features, including a new 'Emotional Start' function which revs the engine up to 2500rpm on start-up, which it says"heightens the anticipation of a typical R driving experience". The forecast is in part due to ongoing supply chain disruption and the resulting tight inventories. Data last week showed sales of previously owned homes dropped to a two-year low in April, while single-family building permits were the lowest since last October. It is yet another pressure on US consumers. Crash investigators are on the scene and said they will release more information as it becomes available.

The Commerce Department said Tuesday that new home sales fell 26. Despite signs that demand for housing is slowing, a record shortage of homes will likely limit the decline in sales. The dashboard door panels are finished in carbonfibre – a first for Volkswagen – while there is extra R badging throughout and a larger, bespoke rear spoiler.9% in April when compared to a year prior. The S&P 500 Index has fallen 17. The median new house price in April soared 19.5% this year amid record inflation, rising interest rates and supply chain shortages.New vehicle inventory remains extremely tight, with retail inventory below a million vehicles for the twelfth consecutive month. Nearly all the houses sold last month were above the $200,000 price level. Create your free account or log in for more features.

"The industry sales pace is being dictated by how many units are delivered to retailers during the month, and demand far exceeds supply," Thomas King, president of the data and analytics division at J.D. Houses under construction made up roughly 65% of the inventory, with homes yet to be built accounting for about 27%. Power, said in a statement."Record transaction prices are the result. At April’s sales pace it would take 9."New vehicle prices have reached near-record highs.

The average transaction cost of a new vehicle in May is expected to reach $44,832, the third highest level on record, and a 15.9 months in March.7% increase from last year. The record high of $45,247 was set in December 2021.Read MoreHigh prices have been a boon for car dealers, who have enjoyed unprecedented profit margins. Usually, new car sales have thin margins for dealers, but that's changed as there's been a shortage of available vehicles since the covid-19 pandemic.

Profit gains from increased vehicle costs have more than offset the lower sales volume, according to J.D. Power and LMC Automotive.Buyers are still expected to spend $45.4 billion on new cars and trucks, an $8.

3 billion decrease from May 2021. Fleet sales are forecast to increase 3.8% in May 2021.Although production is expected to increase in the latter half of 2022, vehicle prices are unlikely to decline, according to King. While factors like an increase in vehicle supply and higher interest rates will likely lead to a slowing of vehicle price increases, they are"unlikely to lead to declines," he said.