ARLINGTON, Va.—For the first time this year, vehicle sales have risen in back-to-back months.
Total vehicle sales rose from 13 million annualized units in June to 13.3 million annualized units in July.
“According to J.D. Power, the average new–vehicle transaction price fell slightly on the month but still hovers around $46,000, while incentive spending reached a record low during the month," NAFCU Chief Economist and Vice President of Research Curt Long said.
Car sales rose to 2.8 million annualized units last month, and light truck sales rose from 10.3 million annualized units to 10.6 million.
Domestic production in July was up 11.8% from the same month in 2021. Inventory increased slightly to 0.56 months of sales in July.
"Ford is reporting improving inventory conditions, but Honda and Toyota are still struggling,” added Long.
‘Persistent Affordability Issues’
“Persistent affordability issues mean that auto sales will remain muted and volatile over the rest of the year, as relief from supply shortages looks increasingly unlikely in 2022 and many car buyers are turned off by higher rates and recessionary concerns,” Long concluded.
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