New-Car Sales To Rise Nearly 7 Percent; Strongest May Since 2007

IRVINE, Calif., May 28, 2014 /PRNewswire/ -- New-vehicle sales are expected to rise 6.7 percent year-over-year to a total of 1.54 million units, and an estimated 16.05 million seasonally adjusted annual rate (SAAR), according to Kelley Blue Book www.kbb.com, the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry.  This marks the strongest May since 2007.

With 1.54 million units sold in May, this would bring the year-to-date total to 6.6 million, a 3.9 percent increase from last year.  In addition, a 16.05 million SAAR this month could mark the second month above 16 million this year, following a 15.98 million SAAR in April. 

"May represents one of the strongest sales months of the year, as consumers take advantage of warm weather and the extended Memorial Day Sales weekend," said Alec Gutierrez, senior analyst for Kelley Blue Book.  "Although transaction prices remain at record highs, shoppers have been able to offset rising prices with low-interest financing and affordable lease options for even those with less-than-perfect credit." 

Key Highlights for Estimated May 2014 Sales Forecast:

• In May, new light-vehicle sales, including fleet, are expected to hit 1,540,000 units, up 6.7 percent from May 2013 and up 11 percent from April 2014.
• The seasonally adjusted annual rate (SAAR) for May 2014 is estimated to be 16.05 million, up from 15.4 million in May 2013 and up from 15.98 million in April 2014.
• Retail sales are expected to account for 83 percent of volume in May 2014.

Compact Crossover Segment Steers Nissan Growth; Entire Jeep Lineup Reporting Double-Digit Growth
Nissan is anticipating another prosperous month with a 13.6 percent year-over-year gain.  Both Nissan's Rogue and Juke are benefitting from increasing popularity in small crossover vehicles, with their combined sales up 47 percent this year.  In terms of volume, Chrysler will pick up the most units compared to last year with 12.8 percent growth.  Chrysler is having a great year in 2014, gaining a full point of market share versus last year.  The Jeep brand in particular has experienced double-digit growth across its full lineup. 

Compact Utility Vehicles to Break 2 Million Sales for First Time
Compact utility vehicles are the fastest growing segment in May 2014 and are on pace to break 2 million sales for the first time.  Mid-size SUV and crossovers also have posted double-digit growth, thanks in large part to the recently introduced Jeep Cherokee, which has sold more than 50,000 units this year through April. 

"As a result of the strength in utility vehicles, we expect mid-size cars to lose the most market share of all segments," said Gutierrez.  "In 2014, mid-size car segment sales are down 5.6 percent, with the biggest declines coming from Chrysler Group, which is down 30.8 percent.  The Avenger has been discontinued this year, while the redesigned 200 has just hit dealership lots.  The Nissan Altima and MAZDA6 are the only models with year-over-year gains in the segment."

There are 27 sales days in May 2014, compared to 26 sales days in May 2013.  All percentages are based on raw volume, not daily selling rate.

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About Kelley Blue Book (www.kbb.com)
Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry.  Each week the company provides the most market-reflective values in the industry on its top-rated website KBB.com, including its famous Blue Book® Trade-In and Suggested Retail Values, and Fair Purchase Price, which reports what others are paying for new cars this week.  The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies.  Kelley Blue Book's KBB.com ranked highest in its category for brand equity by the 2014 Harris Poll EquiTrend^® study and has been named Online Auto Shopping Brand of the Year for three consecutive years.  Kelley Blue Book Co., Inc. is a subsidiary of AutoTrader Group, which includes AutoTrader.com, vAuto, VinSolutions and HomeNet Automotive.  AutoTrader Group is a subsidiary of Cox Enterprises.

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SOURCE Kelley Blue Book