Fleets Continue to Prop Up U.S. Auto Sales Numbers

(Bloomberg) -- Automakers are propping up their U.S. sales by boosting deliveries to rental-car companies and other fleet customers, as demand from consumers keeps slipping.

• Researcher LMC Automotive sees retail sales dipping in February for the third time in four months. In a Bloomberg News survey, analysts estimate the seasonally adjusted annualized rate of total deliveries slowed to about 16.7 million cars and light trucks, from 17.1 million in February 2018.

Key Insights

ANALYST COMMENTARY

• Consumer Edge (Glynn): Expects retail sales to fall by low single digits y/y, partially offset by growth in fleet sales
• RBC Capital Markets (Joseph Spak): February is a lower-volume month, so a difference of a few thousand units can shift the SAAR significantly
  • Believes the industry exhibited good discipline with incentives down 6.8 percent y/y
  • Expects average transaction prices to continue to increase as higher-priced SUVs and trucks gain market share
• Goldman Sachs (David Tamberrino): Retail sales are tracking down low single digits y/y, slightly better than the mid-single-digit decline observed in January
  • Average vehicle incentives were down $260 y/y through mid-month, continuing the trend of y/y declines, with January incentives falling 6 percent y/y to $3,506/vehicle

Get More

©2019 Bloomberg L.P.