An early August new light-vehicle sales estimate puts volume up both month-over-month and year-over-year for a strong late-summer showing.

The S&P Global Mobility report has the month’s sales up 11% over July’s and up 7% year-over-year for a seasonally adjusted annual rate of 15.2 million units.

The results would be even better if not for continued higher prices, the company said.

“New-vehicle affordability remains the biggest obstacle preventing further advances in the pace of auto sales," said Principal Analyst Chris Hopson. "The current environment of still-high interest rates and slow-to-recede vehicle prices are translating to still-high monthly payments and little progress for new vehicle demand levels."

The Federal Reserve signaled this month that it would lower interest rates in September to ease pressure on the job market, a move that could loosen conditions further after replenished vehicle supply helped fuel more sales.

S&P said it expects inventories to keep building as the year progresses and for incentives to remain robust, although it noted a 2% advertised retail inventory dip in July in what it said was the first month-over-month decrease since May 2023, though supplies were still up 53% year-over-year.

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