April SAAR expected to hit 15.1M units

New-vehicle sales are forecast to improve on a month-over-month basis in April as more favorable seasonal factors and increased fleet demand drive up volumes. April U.S. light vehicle seasonally adjusted annual rate (SAAR) is expected to hit 15.1 million units, up from 14.9 million units in March, according to separate forecasts from Cox Automotive and Deutsche Bank . “Relatively strong sales in the wake of rising interest rates and worsening economic headwinds suggests there remains some pent-up demand,” Cox Auto Chief Economist Charlie Chesbrough said in a statement. “ Product availability has improved substantially over this time last year. Dealer lots are no longer empty, so there is far more selection for vehicle shoppers that may have been waiting to buy a particular model or configuration.” Deutsche Bank expects total sales to increase approximately 2% YoY, with retail sales down about 3% YoY and fleet sales up 32% YoY. “For the full year ahead, we expect improving vehicle production to enable a modest increase in SAAR in the context of a broader pressure on U.S. consumers, and inventories to steadily grow, eventually pressuring down pricing,” Deutsche Bank said in an April 27 research note. April, by the numbers Average transaction price for new vehicles is projected to be up 2.8% from a year ago and down 1% from March; Average interest rate on new vehicles is 6.95%, on par with March; and Average loan term on a new vehicle for April is about 69 months, according to TrueCar . Auto Finance Summit East, Auto Finance News’ new spring event, is set for May 10-12 at the JW Marriott Nashville featuring a fireside chat with Peter Muriungi , CEO of Chase Auto . Visit autofinance.live.

April SAAR expected to hit 15.1M units

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