iStock/Thinkstock(NEW YORK) — U.S. car sales were down 3 percent in June, marking the sixth month of declines this year.
“In 2016, we had a record year that beat the previous record in 2015 so we fully anticipated that we’d start seeing sales slow a little bit and that’s exactly what we are seeing,” notes Autotrader senior analyst Michelle Krebs.
Yet, despite the drop, Krebs says she still expects to see about 17 million cars sold across the country this year.
“Could be the fifth best year on record so it’s softening from its peak but it’s still at a very high level,” she says.
And while some automakers are increasing discounts in an effort to boost sales numbers, not all vehicles are being sold for a bargain. In fact, auto prices in general remain high. The average vehicle sold for more than $31,000 in June — a record for the month, surpassing last year’s record.
Krebs says more car buyers are opting for a more versatile vehicle, like an SUV.
“We are seeing a car market that’s divided. Sports utility vehicles and trucks are hot. Traditional cars are not,” she notes.
The shift in sales is good news for automakers like Ford, GM and Fiat Chrysler.
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