DETROIT — When it comes to car shopping, Americans are tapping the brakes.
Forecasters think U.S. sales of cars and light trucks have slowed in June after months of improvement. It’s another sign that people are beginning to doubt the economic recovery with unemployment still high.
“The two big issues with consumers right now are employment growth and income growth, and they’re not seeing much of either,” said George Pipas, Ford’s top sales analyst.
Three firms that track auto sales predict automakers will report a sales decline of 9.5 percent to 12 percent from May to June when they turn in their figures Thursday. A double-digit decline would be the biggest monthly drop since January.
There is good news for shoppers: If sales keep falling, automakers will be more tempted to try to lure car buyers in with low-interest financing, rebates and sweet lease deals.
“People are just nervous about signing up for a three-year loan, so I think people who normally would’ve cycled out of a car a little sooner are deciding, ‘Hey, I’ll just drive this car for another year,’ ” said Tom Folliard, chief executive of used-car dealership chain CarMax.
Automakers sold 1.1 million vehicles in May, the best month so far this year. J.D. Power and Associates, and predict that June sales will drop below 1 million. At that number, sales would be well below a typical June over the past five years, which is 1.3 million, and far below the peak during that period of almost 1.7 million in 2005, according to Ward’s AutoInfoBank.
If the weakness continues into summer, automakers will have to sell more to rental-car companies and other fleet buyers. Last year’s total of 10.4 million was the lowest since 1982.
