Cox Automotive released its August 2020 Forecast Aug. 24.
The sales forecast estimates August's new vehicle sales to finish at 1.30 million units, an increase of 7% from July but an approximate 20% drop compared to August 2019, according to PR Newswire.
The August seasonally adjusted annual rate (SAAR) of auto sales this year is expected to finish approximately 14.9 million, an improvement from July’s 14.5 million pace but a decrease from last year’s 17.1 million level.
Cox Automotive also noted that economic uncertainty and limited inventory are contributing factors to the impediment of the industry’s full recovery.
"While the market continues to slowly improve, there are a number of factors preventing more robust gains. Limited inventory for some brands, as well as the ongoing high unemployment and low confidence from the pandemic, continue to keep sales from rebounding more quickly. There's been a noticeable pull-back in incentives as well. These problems will likely persist, at least in the near term," Charlie Chesbrough, senior economist at Cox Automotive, said.
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