July US auto sales could fall on weaker demand

DETROIT (AP) — U.S. auto sales were expected to drop slightly in July as unusually hot weather — and softening demand — kept buyers at home.

[...] low gas prices, low interest rates, enticing new vehicles and strong consumer confidence should keep them at a very high level.

Plateauing sales could be a good thing for consumers, since automakers are dialing up the discounts in order to hold on to their market share.

[...] incentives are a dangerous game for automakers, since they hurt profits and resale values and artificially inflate demand.

Chevrolet sales dropped but Cadillac, Buick and GMC all saw gains for the month.

Toyota's SUVs, like the RAV4 and Highlander, saw double-digit percentage increases, but low gas prices continued to hurt its cars.