F&I data: July customers seeing similar monthly payments, interest rates

The average new-vehicle monthly payment in July was on pace to reach $727, similar to $722 a year ago and with the same 6.9 percent interest rate as the July 2023 auto loans, according to J.D. Power estimates released July 26.

Payments remained unchanged in July despite consumers financing cheaper vehicles, based on J.D. Power's preliminary numbers. The average new-vehicle transaction price fell 2.6 percent to $44,271, according to the estimated values.

But consumers had less equity to put into those models, with the average trade-in poised to hit $7,809 for July — down 13 percent from a year earlier, according to J.D. Power. As for the fate of some of those trade-ins: The average used-vehicle price for July was on pace to be $28,070, down 5.4 percent.

J.D. Power anticipated auto dealerships would generate $2,298 in sales and finance and insurance gross profit per vehicle, down 33 percent from a year earlier.

"Rising inventory is the primary factor behind the profit decline and fewer vehicles are selling above the manufacturer's suggested retail price," Thomas King, president of the J.D. Power data and analytics division, said in a statement.

King said the Labor Day holiday weekend will spill over into dealerships' August figures, which means August results "are likely to be unusually strong and will skew typical year-over-year comparisons. The key question is the extent to which manufacturers and dealers will attempt to leverage elevated shopping activity through aggressive discounts."