US auto sales sizzle in July, helped by discounts

In this photo made on Thursday, June 5, 2014, a row of 2014 Lincoln MKX SUVs are lined up on the lot of the dealership in Wexford, Pa. General Motors, Ford, Nissan and Chrysler all reported big gains as the major automakers reported July sales Friday, Aug. 1, 2014. (AP Photo/Keith Srakocic) In this photo made on Thursday, June 5, 2014, a row of 2014 Lincoln MKX SUVs are lined up on the lot of the dealership in Wexford, Pa. General Motors, Ford, Nissan and Chrysler all reported big gains as the major automakers reported July sales Friday, Aug. 1, 2014. (AP Photo/Keith Srakocic)

By Associated Press August 1, 2014 3 min read

DETROIT (AP) – Big discounts helped U.S. auto sales sizzle in July.

Toyota, Ford, Nissan and Chrysler all saw double-digit sales gains and General Motors’ sales were up 9 percent over last July. Honda and Volkswagen saw declines.

Analysts predicted the best July for the industry since 2006. Industry sales were expected to rise 11 percent to nearly 1.5 million, according to car buying site Edmunds.com.

Generous summer discounts helped boost sales. Automakers typically offer deals in the summer to clear out inventory before cars from the new model year arrive in the fall. But July’s discounts were unusually high.

Incentives rose 8 percent – or $216 per vehicle – over last July, according to Jesse Toprak, chief analyst for the car shopping site Cars.com. Incentives averaged $2,774 per vehicle, their highest level since August 2010.