Strong July auto sales pushed the seasonally adjusted sales rate to a new high for the year at 16.7 million in the latest update from Cox Automotive.
Driving the news: An estimated 1.4 million in auto sales in July drove the SAAR to its best of the year.
Sales were down 0.4% from July 2025, which had the pull-ahead on EV sales before the expiration of the Clean Vehicle credits in September 2025.
The July forecasted sales are expected to finish 1.2%, or 200,000, ahead of June’s 1.3 million.
Zooming in: The Cox Automotive forecast showed double-digit growth in the mid-size car and subcompact SUV/crossover categories year-over-year.
The mid-sized car segment saw the largest growth, up 19.9% YoY to 70,000.
Subcompact SUV/crossover sales jumped 10.3% to 125,000.
And while compact SUV/crossover sales were still at 225,000, they experienced a 10.2% decline from July 2025.
“As buyers look for ways to manage affordability, many are gravitating toward smaller vehicles, whether that's trading down to a lower price point, seeking better fuel economy, or taking advantage of the growing availability of hybrid options,” said Erin Keating, Executive Analyst, Senior Director of Economics and Industry Insights for Cox Automotive.
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Defying headwinds: The strong July sales came as consumers are faced with elevated interest rates, prices, and fuel costs.
Cox Automotive data shows interest rates for new vehicle sales are at 9.9%.
The average price was at $49,339 in July.
Cox Automotive senior economist Charlie Chesbrough pointed out much of the market is being driven by “more affluent buyers” who are less impacted by inflationary pressures.
Bottom line: As Keating states, there is still some pent-up demand despite the economic concerns.
“Many households are holding onto older vehicles longer, but as repair costs rise and financing rates ease modestly, more buyers are returning to the market,” Keating said. “Dealers should be particularly mindful of inventory and pricing in the compact and midsize segments, which continue to represent the largest share of retail demand.”
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