New vehicle sales increase 2.1% over July 2015 figures

(Detroit, MI – Insurance News and Markets) – JD Power announced in late July that a monthly sales forecast showed an expected sales increase of 2.1 percent over Jul y 2015, up to 1,318,300.

The increase is attributed to an extra weekend in 2016. New vehicle transaction prices  in July 2016 were $30,601, up from $30,041 in July 2015, and  consumer spending has increased from $38.8 billion in July 2015 to $40.3 billion in July 2016. More than half of new vehicle purchases have been trucks. Total new vehicle sales for July 2016 were projected to hit 1,545,400, a 2.4 percent increase over the previous year.

It is important to know that these figures come from sales in the first 19 days of July 2016.

 “Despite the modest sales gains, July is a strong month for the industry in terms of consumer spending,” said Deidre Borrego, senior vice president and general manager of automotive data at JD Power. “While incentive spending continues to rise and is at its highest level so far in 2016 ($3,680), strong truck mix continues to enable record-level transaction prices. Consumer spending in July will hit its highest level so far in 2016.”

Source: J.D. Power.