Auto sales expected to decline slightly

July 30, 2016 at 12:00a.m.

YOUNGSTOWN

Auto sales are expected to decline slightly in July, leading analysts to reconsider their expectations for another record-breaking year.

This year’s sales are on pace with last year’s, but not as strong as had been expected.

Sales are expected to be down by 1 percent this July to 1.5 million, according to Kelley Blue Book analysts.

On Tuesday, automakers will report their July new-vehicle sales.

“I think we are still on record pace as of now, but the momentum is not as strong as it was a few months ago,” said Tim Fleming, analyst for Kelley Blue Book.

So far this year, sales are at 8.6 million. That compares with the 8.5 million made at this point last year.

Last year, automakers sold 17.5 million vehicles setting a new record. This year’s sales were supposed to surpass that, but now it’s a wait and see if that will actually happen.

KBB’S analysts believe 2016 will see sales of 17.4 million to 17.8 million

“Retail demand has been pretty flat versus last year,” Fleming said. “It’s been more of the fleet side driving the growth.”

July is not a good month for fleet sales, Fleming explained.

Automakers are either expected to post a decrease in auto sales or slight increase.

General Motors sales are supposed to be down 3.9 percent. The automaker is working to keep its fleet sales down and increase its retail sales, or sales to individual customers. To increase sales, GM increased incentive spending with the average at about $4,000 per vehicle.

“GM has also the highest transaction price, so they can definitely afford the incentives,” Fleming said. “It is really not a big worrisome factor right now.”