Hey, everyone. CDG News has *tripled* the number of original articles from 5 to 15 per week (with even more to come). Take a look below.

(It’s a bit too colorful at the moment, I know, I know. We’re adding some grays, black and white thumbnails next week)

It’s all part of my mission to bring you the latest car news and trends that are objective, concise, and hit where it matters. Check out our daily news roundups, data-driven articles, and deep dives for transparent insights about the car market.

—CDG

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Car Dealership Guy Week-in-Review

Each week, I curate the top 5 automotive industry headlines based on the topics CDG readers engaged with the most on social media. Let’s get started.

1. Hyundai/Kia May U.S. auto sales grow month-over-month

At a glance: Hyundai sold nearly 10,000 more units in May than in April, totaling 78,485. Kia likewise sold roughly 10,000 more units month-over-month. Kia’s total was 75,156, giving the automaker a much-needed boost after April’s sales slump. 

Driving the news: Hyundai sales are up 12% more than in May 2023. So far this year, the company has sold 331,892 vehicles, up 2% year-over-year. Kia sales increased 5.1% from this time last year. Year-to-date, the company’s sales are down 1%. 

What about EVs?

• Hyundai’s U.S. sales of all electrified vehicles (EVs, hybrids, plug-in hybrids) surged 50% year-over-year in May. 

• All-electric sales jumped 42%, with the Ioniq 5 having its best sales month ever. 

• This comes despite the lack of the $7,500 federal tax credit (maybe not for long), hinting that the leasing loophole might be driving some of the increase.

• Kia's EV and SUV sales hit record highs in May. They delivered 7,197 EVs, a 127% increase year-over-year, marking their best month for EVs ever.

What our readers say:

Hyundai and Kia aren’t the only automakers with good sales. In fact, new vehicle demand is up just about everywhere.

2. Ford’s sales spike in May backed by hybrid, EV strategies

Ford’s U.S. sales rose 11% overall in May year-over-year, primarily driven by strong hybrid, EV, and SUV sales. At the same time, many refreshed models hit dealer lots, like the F-150 and Ranger trucks.x

By the numbers: Ford sold 190,014 vehicles last month. Hybrid sales roared 64.5%, while EV sales also increased 64.7% year-over-year. Traditional gas-powered vehicle sales saw a modest rise of 5.6%.

Ford’s EV strategy is changing: The significant increase in hybrid and EV sales reflects Ford's striking change in strategic tone announced earlier this year. 

• Sales of hybrid vehicles saw meaningful growth, including the Maverick compact truck, which increased 96% to 13,616 units. 

• Sales of EVs were led by the Mustang Mach-E (4,255) and F-150 Lightning (3,260).

Why are new car sales going up? Because incentives are coming back with a vengeance.

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3. Skyrocketing incentives push May sales up 10%

Incentives are driving new vehicle demand across the U.S., pushing the annual sales rate to a 10-month high in May.

What this means: Incentives are inching back to historic levels after virtually disappearing during the COVID-19 pandemic. With affordability being a primary focus for consumers in today’s market, this is helping drive demand for new vehicles, although sales and discounts remain constrained compared to pre-2020 norms.

How many cars were sold in May? The seven automakers who posted monthly sales reported a combined total of 796,307 units, up 10.3% year-over-year.

How did incentives contribute to these numbers? Here’s a quick breakdown:

• May 2024 average transaction price (ATP): $47,433

• May 2024 average incentive spend: $3,274

• May 2024 average incentive as percentage of ATP: 6.9%

Incentive spend is up 69% from the same time last year, according to Motor Intelligence, underlining how rapidly incentives have returned to the market. 

Given that sales have grown faster than prices have declined, it’s clear that this is having a positive impact on demand. 

So what impact is all this having on the used car market?

4. Used car values depreciating at faster pace

Big picture: Used car depreciation accelerated toward the end of May – the largest single-week decline since mid-January, according to Black Book. This comes after a period of relative stability leading into Memorial Day weekend.

Data dive: 

• Auction sales rate dipped 2% to 53% last week.

• Car segments saw a 0.34% drop compared to a steeper 0.55% decrease for trucks.

• Sporty and Premium Sporty Cars (+0.03% and +0.01% respectively) continued their upward trend. Sporty Cars have seen gains for 10 straight weeks (average weekly gain: 0.26%).

• Subcompact cars (-0.77%) saw the steepest decline last week, extending their eight-week losing streak (average weekly drop: -0.41%). 

Why? There are a few possible reasons:

• First, OEM incentives (such as cash rebates or special financing rates) encourage new car sales. These incentives can reduce the overall cost of new vehicles. When new cars become more affordable, some buyers may opt for new vehicles instead of used ones.

• Second, lower new car prices can also lead to higher depreciation across the market. As their value drops faster, it affects the needle for used car pricing.

• Finally, increased supply of used cars (due to trade-ins and lease returns) can lead to lower wholesale prices.

What our readers say:

Looking Ahead: The coming months will be a test for the used car market's resilience. If new car inventory levels keep rising and OEM incentives tick up new car prices will continue their downward trend. Meaning used car prices could see a sustained correction as opposed to a short-term dip.

While used car prices are down across the board, one segment has been hit especially hard: EVs.

5. Hertz knocks down prices of its used Tesla fleet to new lows

Hertz is selling off its used EV fleet for an average price of $25,000 as it dials back its electrification plans.

Hertz has placed 20,000 EVs on sale, close to 33% of its total electrified fleet, with a litany of attractive incentives, including a 12-month/12,000-mile limited powertrain warranty, financing offers, and vehicle protection plans.

Bottom line: While the rental company likely won’t make back the money it spent in 2021, it won’t find any shortage of buyers in the U.S. Thanks to depreciation, used EVs are some of the cheapest cars on the market today.

That’s all for now – make sure you’re following along on X, LinkedIn and IG/FB for more real-time updates. Enjoy your weekend!

We’ve got tons of great jobs hitting the CDG Job Board right now. Here are some standouts for anyone looking for their next move.

• Have a background in sales? OPENLANE is looking for Market Sales Managers across the country.

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Looking to hire? Add your roles today—it’s 100% free.

Thanks for reading. Hit reply and let me know if you found this week-in-review valuable or have any feedback. I’ll see you next weekend.

—CDG

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