Edmunds is forecasting that 1.42 million new vehicles will be sold when July 2017 sales numbers are finalized, which would result in a seasonally adjusted annual rate (SAAR) of 16.9 million units. This would translate to a 3.1% decrease in sales from June 2017 and a 6.2% decrease from July 2016.
The industry continues to deal with declining sales and rising inventories. According to Wards Auto, U.S. dealers entered July with 4.15 million vehicles in stock, resulting in 73 days’ supply. A total days supply in the low 60s is considered healthy for this time of year. Manufacturing production slowdowns will help address some of the dealer inventory issues, but consumers may be waiting to see if incentives continue to grow ahead of the model-year 2018 vehicles hitting dealer lots, before making a final decision on a vehicle purchase.