Vehicle sales in the United States have not declined this year as they have during past times of war and economic pressure, Reuters reported Wednesday (July 1).
While sales fell after the start of the Iraq war in 2003 and a surge in gas prices in 2008, automakers are expected to report Wednesday that sales remained flat during the second quarter despite the Iran war, a spike in gas prices, an uptick in inflation and concerns about the job market, according to the report.
The report attributed the market’s resilience to high-income buyers continuing to purchase big-ticket items, consumers buying hybrid vehicles to reduce their need for high-priced gas, interest rates on new-vehicle loans declining to the lowest point in four years, and the industry offering loan terms that are as long as 84 months and reduce monthly payments.
Thomas King, president of OEM solutions at JD Power, said in a Friday (June 26) press release: “Demand for new vehicles is holding firm as the first half of the year wraps up, with total new-vehicle sales for June projected to rise 3.6% year over year and the annualized selling rate reaching 16.5 million units. Stepping back to the broader picture, total new-vehicle sales for the first half of 2026 are projected to increase 1.2% over the first half of 2025.”
Jessica Caldwell, head of insights at Edmunds, said in a Thursday (June 25) press release: “Q2 started on a rocky note as climbing gas prices put a temporary damper on April sales, but a strong rebound in May and June proved that buyers with immediate new-car needs can only sit on the sidelines for so long.”
Charlie Chesbrough, senior economist at Cox Automotive, said in a June 24 press release: “Thus far, vehicle buyers have shrugged off the latest shock—the Iran war and higher gas prices—as new-vehicle sales have been fairly stable the last few months.”
Reports have said that consumer spending has remained resilient across other goods as well.
Visa said Tuesday (June 30) that consumers around the world are continuing to make discretionary purchases despite rising prices.
The PYMNTS Intelligence report “Inside the Cutback Economy: How Age, Behavior and Financial Pressure Shape Consumer Spending“ found that while 83% of consumers said everyday prices have increased, only 38% said they planned to reduce spending during the following three months.
