
July 2025 Marks a Surprising Sales Growth
July 2025 was a standout month for car sales, with the National Automobile Dealers Association (NADA) reporting that new light-vehicle sales significantly exceeded expectations, hitting a total of 16.4 million units. This represents a remarkable 7.1% increase from June. Moreover, it showcases a 3.7% growth when compared to July 2024, although that year's figures were affected by widespread software outages across dealerships.
Electric Vehicle Trends Amid Other Sales
While electric vehicle (EV) sales saw a 22.7% increase from the previous month, they remained flat when compared to July 2024. This stagnation in the year-over-year figures comes as the auto industry braces for the expiration of federal EV tax credits. Interestingly, hybrids continue to thrive, demonstrating a striking 37.7% increase in sales compared to the previous year, illustrating consumer preference for diverse fuel options.
Challenges from Costs and Tariffs
Despite the good news in sales figures, automotive manufacturers face increasing costs due to tariffs that add about $4,275 to each vehicle, according to J.D. Power. These tariffs pose a significant challenge, prompting many car manufacturers (OEMs) to reconsider their pricing strategies before the autumn adjustments for the release of 2026 models.
Your Next Steps in Automotive Maintenance
For consumers, the rising costs of vehicles directly affect how much you will pay monthly. With average financing payments reaching $742, it’s crucial to stay proactive about automotive maintenance to protect your investment. Regular maintenance not only keeps your vehicle in good working order but can also prevent costly repairs down the line. When considering vehicle purchases or maintenance services, think about how each decision can impact your finances in light of these rising costs.
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