ARLINGTON, Va.—Consumers this year continue to show that their interest in buying new cars is moving into a slower lane.
June vehicle sales – which dropped to 16.51 million seasonally adjusted, annualized units from May's 16.66 million – marks the sixth straight month of year-over-year sales declines, noted NAFCU Research Assistant Yun Cohen.
This represents the slowest sales pace in more than two years, Cohen said.
"As the selling pace slows and inventory levels swell, car makers are feeling pressured to increase incentives. According to J.D. Power, the average incentive spending per unit reached $3,661 in June—a record for the month and surpassing the previous high set just last year," Cohen said in a NAFCU Macro Data Flash report.
"Lease terms are also loosening to accommodate buyers. According to Edmunds, the average loan term for new vehicles hit a record high of 69.3 months in June," Cohen added.
Three of the six largest automakers reported increases in their year-over-year sales numbers. Toyota reported the strongest gain in sales at 2.1%, followed by Nissan (2%) and Honda (0.8%). FCA (Fiat Chrysler Automobiles) sales were down 7.4% versus last year, followed by Ford (-5%) and General Motors (-4.8%).
"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.