WASHINGTON—Total vehicle sales in July decreased slightly to a rate of 17-million annualized units during July, a number that’s "right where they have hovered for several years running," according to NAFCU Chief Economist and Vice President of Research Curt Long.
"Lower interest rates are supporting demand, but only to offset the tapering effects of tax cuts," Long said in a NAFCU Macro Data Flashreport. "J.D. Power also reports that year-over-year price growth of new vehicles is nearly double that of overall inflation. In part, that reflects the shift of buyers from sedans to SUVs. NAFCU expects auto sales to remain on their current path for at least the next year."
Car sales decreased from 5.1 million annualized units to 4.8 million annualized units during the month. Sales of light trucks rose from 12 million annualized units to 12.2 million annualized units.
According to recent survey data from the Federal Reserve Bank of New York, 12% of households applied for a car loan within the past 12 months, down from 14% a year prior, Long noted.