Estimate: U.S. auto sales rate back on track

/wp-content/uploads/2022/11/BR_web_311x311.jpeg

It’s not quite the second coming of “Cash for Clunkers,” but in July U.S. auto sales probably rose to their highest rate of 2010 and resulted in the best month since the U.S. government program was sparking auto sales in August 2009.

Model-year closeout deals likely drew consumers to showrooms, leading to industry-wide deliveries reaching an annualized rate of 11.9 million vehicles, according to the average of eight analyst estimates compiled by Bloomberg. That rate would be 5.3 percent higher than last year’s 11.3 million pace. The report will be released tomorrow.

Discounts from automakers are 3.8 percent higher than a year earlier, which is an effort to clear out 2010 vehicles and make room for new models.

Analysts said the gains indicate that sales are steadily improving, despite being below historical levels.

“This is fueled by consumers who had postponed their purchases and are now getting back into the market,” Jesse Toprak, vice president of industry trends at TrueCar.com, told Bloomberg. “They’re not coming back in a flood — they’re just trickling in.”

The estimate is more good news considering that auto sales dropped to an 11.1 million annualized rate in June, leading analysts to worry that the auto recovery was stalling. Ford Motor Co.’s chief financial officer, Lewis Booth, had contended that June was just an “aberration” rather than an indication of a slowing market.

“Demand for autos is recovering, but it’s at a lethargic pace,” Joseph Barker, senior manager of North American vehicle sales forecasts at IHS Automotive, told Bloomberg. “Consumers are still not confident in their finances and therefore are still holding back on big-ticket purchases.”