ARLINGTON, Va.—Vehicle sales rose slightly in July, rising to 16.77 million seasonally adjusted, annualized units from June's 16.7 million.
July was the third straight month in which sales indicate that overall fewer than 17 million units will be sold this year. Year over year, sales were down 5.9%, reported NAFCU, which noted that dealer incentives are increasing in an attempt to raise sales.
CUToday.info recently reported that new car sales have been declining in 2017 over 2016, even in the truck segment, which has posted strong sales post-recession.
"As the selling pace slows and inventory levels swell, car makers are feeling pressured to increase incentives," said NAFCU Research Assistant Yun Cohen. "According to J.D. Power, the average incentive spending per unit reached $3,876 in July—a record for the month. The lower sales levels in recent months were also reflected in weaker demand readings for auto loans, as reported in the Fed's most recent Senior Loan Officer Opinion Survey," Cohen said in a Macro Data Flash Report.
"The survey also found that more banks were tightening standards for auto loans, especially to subprime borrowers," Cohen added.
The sales data, released this week by Autodata Corp., show that five of the six largest automakers reported declines in their year-over-year sales numbers. General Motors reported the largest slide in sales at 15.5%, followed by FCA (Fiat Chrysler Automobiles) (-10.5%), Ford (-7.4%), Nissan (-3.2%) and Honda (-1.2%). Toyota's sales were up 3.6% versus last year.
"Looking ahead, a solid labor market means that vehicle sales are expected to remain fairly stable through the rest of the year, but the days of robust sales growth are behind us," Cohen added.