Summer deals lure car buyers in July for best sales month so far this year

Ahead of the Bell: July US auto sales seen rising

DETROIT — U.S. car buyers were back in the market last month.

Analysts are expecting July to be the best month for U.S. auto sales since last August, when the government’s Cash for Clunkers program caused a sales boom. They say July’s model-year clearance sales helped bring out buyers after lackluster sales earlier this summer.

Automakers report July sales throughout the day Tuesday.

Edmunds.com predicts July sales were up 8 percent from the same month last year and up 9 percent from June.

Analysts say shoppers were looking for bargains. Chrysler was offering to make buyers’ first two months’ payments in July, while Toyota started its usual summer clearance sale a month early.

But the good times may not last.

Automakers are trying to hold the line on deals, which cut into profits. TrueCar.com says incentive spending was down 4 percent compared with last July.

And buyers still have a lot of uncertainty about the economy and employment.

J.D. Power is lowering its forecast for full-year U.S. sales by 100,000 vehicles to 11.7 million.