New Vehicle Sales Continue to Decline
Vehicle sales in the United States fell 6.9% in July compared to last year. The Seasonally Adjusted, Annualized Sales (SAAR) came in at 16.78 million vehicles. In July 2016, the SAAR was 17.82 million vehicles. This is the third month in a row that the SAAR was less than 17 million vehicles.
Passenger car sales accounted for most of the decline. Car sales were down 15%, while truck and SUV sales only fell 1.9%.
Most manufacturers continue to reduce the amount of vehicle sales to fleet and rental car companies.
What must be concerning for manufacturers is that sales continue to slide as they spend more on incentives. ALG estimated that the average incentive on a new car was $3,565 in July, which was 4.7% higher than July 2016.