NADA Economist: New-Car Sales to Rise in July as Gas Prices Drop
NADA economist Paul Taylor anticipates an increase in new-vehicle sales as inventory levels rise and gas prices drop through the beginning of July.
McLEAN, Va. — New-car and -truck sales will increase over the second half of the year beginning in July, as inventory levels increase and gasoline prices drop, according to Paul Taylor, chief economist of the National Automobile Dealers Association (NADA).
“Gasoline prices are currently falling, and that will allow dealers to sell a full mix of new vehicles, ranging from small cars, crossovers to pickup trucks, despite the lack of inventory of many popular selling models resulting from the crisis in Japan,” Taylor said.
If gasoline prices had reached $4.50 or more, it would have created a shift in demand by consumers to hybrids and small economy cars, all currently in short supply, he continued.
“Sales of hybrid vehicles increase dramatically when gasoline prices rise to levels that consumers have not seen before, as they did in the summer of 2008,” Taylor said. “The most popular hybrid, the Toyota Prius, is in short supply at 10 days of inventory when it should be about 60 days.”
Taylor expects new-car and -truck sales in June to be restrained somewhat by a shortage of inventory, similar to what happened in May, but he says the outlook for sales in July and beyond is positive as credit availability improves and lenders look to increase their loan volume.
“Banks, credit unions and the automaker captives are all looking to finance new-vehicle purchases in the second half of the year,” Taylor said.
More Auto Finance

July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →