US Auto Sales Expected to Have Reached Best July Since 2006 image

Dealerships in the US expect positive July auto sales results.

“We’re still on fire,” the owner of Brown’s Jeep Chrysler in Patchogue, New York, said. “We’re going to be up over June and we’re going to beat last year by 10, 12 percent or so. There’s a lot of demand in the market place.”
US auto sales in July are expected to have increased between 14% and 16% to around 15.8 million vehicles mainly thanks to an improving housing market which rose the full-size trucks sales. says that this would be the strongest July since 2006.

“Stability is really the story,” analyst Jesse Toprak said. “I know it doesn’t make a great headline.”

Auto industry in July has hit better results compared with the broader economy mainly due to easier access to credits, but also thanks to the consumers’ need to replace their old vehicles. The Commerce Department said today, July 31st, that during the second quarter the US economy registered an unexpected growth.

In June auto sales increased 9%, accounting for the strongest month since 2007, as the reviving housing market lead to a boost in pickup sales. Customers have also been attracted by new vehicles fitted with better technology, such as the new Jeep Grand Cherokee SUV. As the smaller Jeep Cherokee will be launched in September, dealerships expect sales to further increase.

“With a strong tailwind, it is not unreasonable to think about a 16-million-unit level of demand in 2013,” LMC senior vice president Jeff Schuster said.

Source: Reuters