A Cox Automotive forecast released Aug. 25 shows that new-vehicle sales for August are expected to show "the substantially slower pace" of sales as new-vehicle demand remains virtually unchanged.
According to the Cox Automotive sales forecast, the seasonally adjusted annual rate is currently expected to finish at 13.3 million. While the rate is up from last year's 13.1 million, it remains flat month over month.
“New-vehicle inventory remains essentially unchanged since tight inventory started severely limiting sales in July 2021,” Cox Automotive Senior Economist Charlie Chesbrough said, according to Cox Automotive's website. “The headwinds to a sales recovery this year are growing as buying conditions worsen. Rising interest rates and historically low consumer sentiment are keeping many potential buyers out of the new-vehicle market. And high prices for both gasoline and vehicles are making affordability an even greater challenge. However, the lack of supply is the biggest obstacle over the near term, and there is little evidence of new-vehicle supply returning to a healthier level.”
An increase of new-vehicle sales volume to 1.14 million units, up 3.6% year over year, is expected for the month, but would still close August out being down .3% compared to July, according to Cox Automotive.
Vehicle sales that have seen an increase are the full-size pickup truck, compact car and midsize car segments, according to the forecast.
Cox Automotive, like many other industry forecasters, is expecting continued supply chain and chip shortage problems to improve by the end of the year.
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