Well, fasten your seat belt – after two months of declining auto sales in the struggling U.S. auto market, it’s now predicted that new-vehicle retail sales will bounce back in July.
New-vehicle sales are expected to come in at 928,000 units this July, according to J.D. Power and Associates, which tracks actual dealer sales on a daily basis.
This makes for a seasonally adjusted annualized rate (SAAR) of 9.4 million retail units, a significant increase from June’s rate of 8.4 million units.
However, this is still far, far below the pre-financial-disaster boom years of more than 15 million annually. (See Oops! U.S. June Auto Sales Down Further)
Year-over year comparisons are difficult this month. Even though July’s SAAR selling rate is also up from the 8.9 million units posted in July 2009, last year the “Cash for Clunkers” program, aka CARS, kicked in.
“Consumers appear to be responding to the slight increase in visible incentive spending, which is expected this time of year during typical model-year sell downs,” said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates.