“Finally, in July, we witnessed a positive shift in monthly retail new vehicle sales,” commented Brandon Cohen, National Chairperson of the National Automobile Dealers Association (NADA), following the release of the sales figures by naamsa | The Automotive Business Council.
“Although the increase was modest at 1.5% compared to the same month last year, the sale of 44,229 units is encouraging. When compared to June 2024 sales, July witnessed an overall increase of 4,356 vehicles with passenger vehicles accounting for 3,171 units. Year-to-date, we remain 6.3% behind the figures for 2023, but we are hopeful that the July sales mark the beginning of growth in the second half of the year. Despite this, with a year-to-date deficit of 6.3%, we have significant ground to cover before the year’s end.”
“Consumers are beginning to visit dealerships more frequently. Confidence in the country and overall sentiment are improving, leading people to gradually return to car purchases. However, high interest rates and the unsustainably high cost of living continue to impact vehicle finance accessibility. While there is a clear desire for vehicles, affordability remains a significant barrier,” explained Cohen.
“There are positive indications that interest rates may be reduced by 25 to 50 basis points before the year ends, and some consumers are already factoring this potential change into their purchasing decisions.
Franchised dealers accounted for 81.1% of total sales, with rental contributing 13.5%. Government purchases represented 2.9%, and corporate fleets absorbed 2.5% of the total sales. The passenger car segment saw a 6.8% increase, while light commercial vehicle sales fell by 8.8%. Sales of medium and heavy trucks declined by 6.6% and 3.7%, respectively.
