DETROIT–The sale of new vehicles, especially trucks, has hit a pothole. As CUToday.info has reported, overall vehicle sales have been declining in recent months, but truck and SUV sales have remained strong. But new data show that trend line is changing.
The latest automakers’ reports show that weaker-than-expected sales of trucks contributed to the biggest downshift in 2017, as vehicle sales in July were down 7% over one year earlier, to 1.4 million cars and light trucks. Sales were down 2.9% in June, and 4.7% in April.
The automakers’ data show new car and truck sales have fallen every month this year after hitting a record 17.5 million in 2016. “Most automakers expect full-year sales to come in just over 17 million for 2017, still a healthy level, although some forecasters believe lower sales will follow in 2018,” The New York Times reported.
“We know car sales have been down, but the truck part of the market has been stronger, so this is worth watching, to see if it’s a new trend,” Jessica Caldwell, an analyst at Edmunds.com, was quoted by the Times as saying. “If trucks fall again in August, this could be something to worry about.”
The Times noted that one contributing factor to slowing sales has been the ongoing increases in vehicle prices. In July, the average amount a consumer borrowed to buy a new vehicle was $30,689, 17%more than five years ago, according to Edmunds, the automotive data provider. The average monthly car payment was $509, the Times reported.