TrueCar sees more incentives to buy new cars in July for first time in nearly 20 months as affordability declined

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TrueCar Inc. TRUE, -1.53%, the online used and new car buying and selling company, said it expects total new vehicle sales of 1.12 million vehicles in July, down 10% from a year ago and down 2% from June, when adjusted for the same number of selling days. The company also estimates the seasonally adjusted annualized rate (SAAR) for total light vehicle industry sales to be 13 million in July, down 15% from a year ago. TrueCar expects U.S. retail deliveries of new cars and light trucks in July, excluding fleet sales, to be down 14% from a year ago, and down 1% from June, to 975,597 vehicles. TrueCar Industry Analyst Zack Krelle said consumers are facing increasing challenges to vehicle affordability as rising interest rates boost monthly payments even as average purchase prices remain flat. “This month we’re seeing the first response from the industry to address affordability concerns, by increasing incentives for the first time in nearly 20 months,” Krelle said. The company that saw the biggest year-over-year percentage increase in forecasted retail unit sales in July was Tesla Inc. TSLA, +5.78% at 65.9%, followed by Ford Motor Co. F, +4.93% at 32.7%, TrueCar said, while Honda Motor Co. HMC, -0.50% saw the biggest decline at 50.5%, followed by Nissan Motor Co. Ltd. NSANY, -1.17% at 39.4%.

This article was originally published by Marketwatch.com. Read the original article here.

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