TrueCar.com recently reported its sales and incentives expectations for the automotive industry in July. The report predicts that new car sales will be strong again, as pent-up demand continues to push the industry forward in 2013
According to TrueCar.com, new light vehicle sales in the U.S. are predicted to reach 1,326,035 units in July, accounting for a 15.3 percent increase on year-over-year comparison and a 5.1 percent increase on a month-over-month comparison. The sales forecast translates to a seasonally adjusted annualize rate of 15.8 million new vehicle sales, up from 15.9 million on a month-over-month comparison and from 14.1 million on a year-over-year comparison. Experts note that compact cars and large trucks were some of the hottest-selling vehicles this month.
"Value conscious buyers are devouring the compact segment inventories while the recovering housing sector is fueling the small business purchases of large trucks," said Jesse Toprak, senior analyst for TrueCar.com. "July delivered the highest year-over-year increase so far in 2013. Consumer demand for new vehicles remained healthy, with small cars/SUVs and large trucks outperforming the industry sales rate.
In addition, experts noted that since demand for new cars continues to be high, automakers are not forced to offer deals on new vehicles, because with demand where it is, consumers will likely be making a purchase anyway.
"Incentives are up almost 8 percent in July as the summer sell-down season begins, dealers have more vehicles to clear out from lots than last year," said Kristen Andersson, analyst for TrueCar.com. "Hyundai/Kia is aiming to stay competitive by increasing incentives to their highest levels in almost three years."
KBB agrees: Strong vehicle sales in July
Kelley Blue Book issued a similar report, expecting strong vehicle sales in July. According to the report, new car sales are expected to reach 1.34 million units in July, up 16.1 percent on a year-over-year comparison and 4.4 percent on a month-over-month comparison. KBB also credited the strong sales month to the popularity of compact cars, large trucks and crossovers.
As a result of the continual robust pace of the automotive industry and the growing economy, KBB is revising its sales forecast for 2013 from 15.3 million to 15.6 million. Alec Gutierrez, senior market analyst at Kelley Blue Book, said that consumer confidence has enabled the automotive industry to reach its highest levels since January 2008.