US new-vehicle sales barely rose in the second quarter
DETROIT — U.S. new-vehicle sales rose only slightly in the second quarter, despite larger discounts and slightly lower prices.
But brisker sales could be on the horizon: Auto industry analysts say they expect prices to drop further and there’s a possibility of interest-rate cuts that would make taking out a loan for a new vehicle more affordable.
Overall, U.S. sales were up only 0.1 percent compared to a year ago, as still-high prices kept many potential buyers out of the market, according to preliminary tallies Tuesday by Motorintelligence.com.
Sales were crimped in late June, when cyberattacks knocked out software from CDK Global that dealerships use to do sales paperwork. CDK said most dealers were back up by Tuesday afternoon, but companies such as General Motors said the problem pushed some deliveries into the third quarter.
Analysts say inventories on dealer lots are building, especially for pickup trucks and other higher-priced vehicles.
Discounts vary by demand for vehicles, with smaller, less-expensive models and gas-electric hybrids generally being in shorter supply. Many customers are delaying purchases, figuring that bigger discounts are coming.
“Waiting may be the optimal strategy here,” said Cox Automotive Senior Economist Charlie Chesbrough.
Toyota, which sells many popular gas-electric hybrids, posted a 9.2 percent sales increase from April through June. Honda sales were up 2.7 percent, while General Motors posted just a 0.3 percent gain and Hyundai reported a 1.8 percent increase. Subaru had a 5.4 percent sales gain.
Sales at Stellantis fell 20.7 percent in the second quarter, with the Ram brand off 26 percent and Jeep sales falling 19 percent. Nissan sales fell 3.1 percent, while Kia was down 1.6 percent.
Together, automakers reported selling roughly 4.13 million new vehicles from April through June.