Nutson's Weekly Auto News Wrapup June 1-7, 2025
* May Sales. May new vehicle sales in the US cooled off from the strong pace seen in March and April, likely due to the normalization of tariff-driven demand and rising affordability concerns. The seasonally adjusted annual rate (SAAR) of sales dropped to 15.6 million, down from April's 17.3 million, although the monthly sales volume of 1.50 million units was still up 3.2% from May 2024. Light-truck sales continued to be strong, accounting for a significant share of the total sales volume, with sales up 5.1% year-over-year. Affordability is a growing concern, and higher prices may impact future sales.* High prices and high interest rates. The personal-finance website WalletHub reports, with vehicles having become progressively less affordable in recent years, many consumers have unfortunately been forced to take out auto loans that are too large relative to their incomes. Borrowing too much for cars has led to many people having trouble paying back their debts as a result. This is evident in the fact that the states where the average auto loan debt is the highest relative to the median income are also among the states with the highest auto loan delinquency rates. See the report here.