In their midyear update, Edmunds analysts maintained their forecast of 16.9 million sales of new vehicles this year.
The report also said used vehicle sales were generating greater competition for new cars, with used vehicles $13,535 cheaper than new this year — the gap widening from $8,996 in 2010.
“Automakers are fighting a war on multiple fronts right now: Old cars are piling up on dealer lots, a glut of affordable off-lease vehicles are luring shoppers into the used market, and even with the Fed anticipated to lower rates in July, higher interest rates are here to stay,” said Jeremy Acevedo, Edmunds' manager of industry analysis.
“Strong economic indicators such as consumer confidence and low unemployment are keeping sales at historically elevated levels, but automakers have also been relying a little too heavily on fleet sales to keep these numbers up as well, which isn't a sustainable model.”
View the report for further details about the 2019 midyear trend updates.
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