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Vehicle sales fall to lowest number since 1976
Total vehicle sales continued to plummet in April, falling to 8.6 million annualized units. Monthly sales levels were down 47.8 percent versus April 2019 and hit the lowest number on record since January 1976 when the Commerce Department began recording data series.
"Most of the country was under stay-at-home orders in April, severely depressing consumers' ability to visit showrooms, not to mention the macroeconomic effects of Coronavirus on the broader economy," said NAFCU Chief Economist and Vice President of Research Curt Long in a new Macro Data Flash report.
"Reports suggest that the auto market has bottomed and that sales activity remained fairly flat over the latter half of April," he added.
Sales of cars and light trucks both decreased during the month, falling to 1.9 million annualized units and 6.6 million annualized units, respectively. However, light trucks continue to dominate the market share, with truck sales down 43.3 percent year-over-year and auto sales dropping 59.3 percent.
"NAFCU expects vehicle sales to recover slightly as some states begin limited openings, but with tens of millions out of work and underwriting standards tightening, that rebound will not come close to pre-virus sales levels any time soon," Long noted.
For more up-to-date economic updates from NAFCU's award-winning research team, view NAFCU's Macro Data Flash reports.