TrueCar Expects Sales Dip

By Staff Writer July 31, 2022

TrueCar Inc. expects total new vehicle industry sales to reach 1,119,712 units in July 2022, down 10% from a year ago and down 2% from June 2022, when adjusted for the same number of selling days.

“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,” said Zack Krelle, Industry Analyst at TrueCar.

This month’s seasonally adjusted annualized rate (SAAR) for total light vehicle industry sales is an estimated 13 million, down 15% from July 2021. Excluding fleet sales, TrueCar expects U.S. retail deliveries of new cars and light trucks to be 975,597 units, down 14% from a year ago and down 1% from June 2022.

And while inventory remains close to historically low levels, there is some emerging distinction among various OEMs.

“OEMs that have inventory and supply are weathering the drop in sales differently than the ones that don’t,” said Justin Colon, vice president of OEM Solutions at TrueCar. “There may be long-term implications for brands that are low on inventory, as those brands could lose some loyal customers.”

Used vehicle sales for July 2022 are expected to reach 3 million, down 17% from a year ago and up 4% from June 2022.

The average interest rate on new vehicles is 5.5% compared to June 2022 at 5.3% and the average interest rate on used vehicles is 8.5%.

The average loan term on a new vehicle for July 2022 is about 71 months and the average loan term on a used vehicle is also about 71 months, both up about one month since last July.

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Last modified on Friday, 05 August 2022 12:45