The new Jeep Wrangler posted a 14% increase last month for its best-ever July sales result.
With Detroit’s automakers leading the way, new car sales remained very strong during July thanks to an improving economy, ample financing and the appeal of new products that have given automakers a major lift.
Transaction prices also continued to exceed $32,000 per unit as consumers and automakers remained willing to take on more debt for a new vehicle and carmakers and banks remained more than willing to underwrite it. Analysts said.
Chrysler Group continued to roll last month reporting a 20% increase compared with sales in July 2013. The Chrysler, Jeep, Dodge, Ram Truck and Fiat brands each posted year-over-year sales gains in July compared with the same month a year ago.
The Jeep brand’s 41% increase was the largest sales gain of any Chrysler Group brand during July and its best-ever July sales. Chrysler Group extended its streak of year-over-year sales gains to 52-consecutive months in July.
The newly redesigned Cadillac Escalade is enjoying a sales rebound since its introduction, including a 32% jump in July.
General Motors continued to impress in July. As the automaker deals with unprecedented recall numbers, it saw its sales increase 9% year over year. GM’s jump came in large measure from a significant increase in fleet and commercial sales. The maker’s sales to everyday shoppers at dealerships rose 4%.
Much of that came from increases in crossover and sport-utility sales. Crossovers were up 26% in July while non-luxury SUVs rose nearly as much: 25%. The Cadillac Escalade was another big seller with sales up 32% in July.
“Sales of utility vehicles soared in July because American families feel better about the economy than they have in a long time, and they are finding an incredible variety of redesigned and all-new models in our showrooms,” said Kurt McNeil, U.S. vice president of Sales Operations. “Small, compact, medium, large – sales were strong across the board.”
Ford had its best July in eight years as wiggled out of a sales funk that began in early spring with a 10% jump that saw Ford and Lincoln posting gains in July.
“Escape and Fusion were big contributors to our sales increases, with both setting July sales records,” said John Felice, Ford vice president, U.S. Marketing, Sales and Service. “F-Series again topped the 60,000-vehicle sales mark and we’re seeing great initial demand for our launch vehicles, such as the Transit Connect, Transit Connect Wagon and the Lincoln MKC as availability builds.”
Asian automakers also posted solid sales last month. Toyota’s sales rose 11.6%, Hyundai climbed 2% and Nissan reported an increase of 11.4%.
“The July 4th holiday got sales off to a great start, and the pace remained solid all month,” said Fred Diaz, senior vice president, U.S. Sales & Marketing and Operations, Nissan. “Strong performances by Versa, Sentra and Rogue – and the best July for Leaf – drove Nissan’s sales to our best July on record.”
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Strong demand for compact crossovers pushed sales of the Nissan Rogue in July.
Honda officials said their sales were essentially flat as Acura sales tailed off in July as dealers awaited the arrival of the new TLX sedan. Volkswagen continued its struggles in 2014 with sales down 14.6%. Even its American-made Passat sedan also fell, 13.8% last month. VW’s sales for the year are down 11.7% through July.
All was not lost for the VW group, as one of its premium brands, Audi, enjoyed a strong July.
“Due to the sustained high demand for our Premium cars, we needed to move our 2015 model year release ahead of schedule as supply became available early July,” said Mark Del Rosso, executive vice president and chief operating officer, Audi of America.
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“That gives us tremendous confidence heading into the second half of the year with the new Audi A3 Cabriolet, A3 Sedan TDI and the S3 performance model reaching showrooms within weeks, and the new Q3 crossover arriving later this fall.”
One of the reasons given for the increase in sales in 2014 is a rise in incentives. However, despite automakers slapping additional cash on the hoods of some vehicles enticing some to buy, the average price paid for vehicles rose again.
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“Overall, the industry continues to see average transaction prices rise at a solid pace,” said Alec Gutierrez, senior analyst for Kelley Blue Book. “Truck and utility vehicles are the major drivers behind this strength, especially among domestic automakers.
“Increasing share of luxury vehicles also has played a role as sales in that segment have led the growth in the overall industry so far this year. With consumer confidence on the rise in July, shoppers are clearly willing to spend a little extra on the vehicle they want.”
The analysts at Kelley Blue Book estimated average transaction price for light vehicles in the United States was $32,556 in July 2014. New car prices increased $662, or 2.1%, from July 2013.