JD Power Expects Sales Rebound

After weaker sales in May and June, new-vehicle retail sales are expected to bounce back in July as a result of a combination of positive factors, according to J.D. Power and Associates.

July new-vehicle retail sales are expected to come in at 928,000 units, which represents a seasonally adjusted annualized rate (SAAR) of 9.4 million units. July’s selling rate is expected to increase considerably from June’s selling rate of 8.4 million units. While July’s selling rate is also up from 8.9 million units in July 2009, year-over-year comparisons are not as relevant due to distortion from the CARS program in 2009. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles.

While fleet sales in the month of July are typically low, fleet sales this month are expected to increase from the extremely low levels in July 2009. As a result, total light-vehicle sales for July are expected to return to levels above 1 million units.