July Sales Up Amid DMS Recovery
Two forecasts show a healthy increase after CDK Global systems restoration, despite seasonal and other market complications.

J.D. Power expects dealer profit to be down this month 33% year-over-year to $2,298 per unit.
Pexels/Vadutskevich
Two July new-vehicle sales forecast show a return to more normal patterns after the disruption caused by the shutdown of CDK Global dealer software systems.
In fact, J.D. Power expects the seasonally adjusted annualized rate to hit a three-year-plus high of 16.7 million units, taking both retail and nonretail into account. Both it and Cox put July deliveries at 1.3 million. Both this July and last had the same number of selling days.
Though Cox Automotive projects a more conservative 16 million SAAR, that’s a healthy bump from the low 15.3 million in June, when most of the CDK outage occurred. Both Cox and J.D. Power said the July numbers include at least some of the June sales not reported due to the systems shutdown.
“How much is unknown, but tens of thousands of vehicles may have been affected,” said Cox Senior Economist Charlie Chesbrough. “Fleet sales are also unknown but will be an important factor in July’s result … recent trends suggest less activity from this channel.”
J.D. Power said its higher forecasted sales figure would be even higher if not for market factors affecting sales: smaller discount increases due to a seasonal refocus on prior model year discounts; reduced leasing; and decreased inventory resulting from the annual model-year transition, though it forecasts inventory to still be up 33% year-over-year.
Growing inventory, though it feeds sales, also eats into dealer profit, which J.D. Power expects to consequently be down 33% year-over-year to $2,298 per unit, the exact inverse of the inventory reversal. It said just about 15% of new vehicles are selling above manufacturer’s suggested retail price this month.
DIG DEEPER: Ferrari Calls Cryptocurrency Foray a Success
More Industry

Two New Rides Earn Safety Awards
Thanks to vehicle redesigns, two more vehicles have earned IIHS’ Top Safety Pick+ award that builds on the criteria of the lower Top Safety Pick award.
Read More →
How A Simple Phone Call Can Cause a Dealership Data Breach
Despite the sophisticated techniques fraudsters often employ today to gain access to dealerships’ valuable information, they sometimes use a somewhat old-fashioned approach.
Read More →
Texas Rooftop Gets New Owner, Name
Family-owned Lumos Auto Group acquired Acura of the Rio Grande Valley from Bill Bird and will operate the dealership as Lumos Acura.
Read More →
Hyundai Feeling Electric
As the automaker looks to the balance of the decade, it plans to significantly boost its electrified powertrain lineup, including more hybrids and its first extended-range EVs.
Read More →
Dealer Debrief: Luxury Brands are Losing Ground
The quality gap between luxury and mass-market auto brands is narrowing. Today, Lauren is discussing why.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
Longtime Ford Store Changes Hands
The Virginia dealership joins a small area automotive group in a one-dealership transaction, moving from one family franchisee to another.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
ASE Seeks Accurate Technician Pay, Benefits Data
New free membership trial removes cost barrier for dealerships and shops willing to contribute anonymous information to the industry data exchange.
Read More →
No Longer Worth the Price?
Mass-market auto brands are gaining ground on luxury competitors with what used to be premium features, helped along by the pressure of high vehicle prices dogging budget-conscious shoppers.
Read More →
