In the second quarter of the year, U.S. new-vehicle sales increased only slightly compared to the same period last year, despite larger discounts and slightly lower prices. However, analysts believe that brisker sales could be on the horizon due to expectations of further price drops and the possibility of interest-rate cuts, which would make taking out a loan for a new vehicle more affordable. Overall, U.S. sales saw only a 0.1% increase, with high prices keeping many potential buyers out of the market.
In late June, cyberattacks on software from CDK Global caused disruptions for dealerships using the software for sales paperwork, leading to some delays in deliveries and impacting sales for the quarter. Analysts note that inventories on dealer lots are building, particularly for pickup trucks and other higher-priced vehicles. Discounts vary based on demand, with smaller, less-expensive models and gas-electric hybrids facing shorter supply. Many customers are opting to delay purchases in anticipation of bigger discounts in the future.
Automakers such as Toyota, Honda, General Motors, Hyundai, and Subaru saw varying sales increases in the second quarter, with Toyota and Honda experiencing the largest gains. On the other hand, Stellantis, which includes brands like Ram and Jeep, reported a significant sales decline, as did Nissan and Kia. Despite these fluctuations, automakers collectively sold approximately 4.13 million new vehicles from April through June, putting them on track to meet forecasts of nearly 16 million for the year.
Cox Automotive Senior Economist Charlie Chesbrough suggests that waiting may be the optimal strategy for customers considering a new vehicle purchase due to the expectation of bigger discounts in the future. Additionally, Ivan Drury, director of insights at Edmunds.com, notes that interest rates for new vehicles are currently averaging at a low level, making it a potentially favorable time for consumers to buy a new vehicle. As prices continue to drop and interest rates remain low, analysts anticipate an increase in sales volume in the coming months.
Despite the challenges faced in the second quarter, including disruptions from cyberattacks and high prices deterring some buyers, the U.S. new-vehicle market is expected to see improvements in the near future. With the potential for further price reductions and interest-rate cuts making financing more accessible, analysts predict that sales may pick up in the upcoming months. Manufacturers and dealers are likely to adjust their strategies to attract customers and clear out inventory, leading to a more competitive market for new vehicles.
