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Start your engine or hit the brakes? Traders share how they're playing peak auto

The "Fast Money" traders debated whether it would be possible for the auto industry to break above their recent blockbuster levels.

The U.S. auto sales rate came in at 16.66 million vehicles for the month of June, below the May sales pace of 17.45 million.

Trader Steve Grasso said that one reason why Ford Motor and General Motors is attractive is because of their yields.

"I know they're dogs, but they've been beat up so bad I wonder if guys start chasing yield here," Grasso said.

Trader Tim Seymour said he could "live with peak autos with this valuation with a company [like GM] that's not falling for the old tricks." Seymour said he likes that the company is focused on margins and "not giving away the house."

Trader David Seaburg disagreed and said that the "market is not lying to you in these names. Stay far and clear."

Trader Guy Adami said he isn't a fan of how Ford and GM have "gone sideways to lower for four or five years." He said he prefers the auto parts space and companies like Autozone.

Assembly at the Ford Flat Rock Assembly Plant in Flat Rock, Michigan.
Getty Images
Assembly at the Ford Flat Rock Assembly Plant in Flat Rock, Michigan.

Disclosures:

Tim Seymour

Tim Seymour is long APC, AVP, BAC, BBRY, CLF, DAL, DO, EDC, EWZ, F, FCX, FXI, GM, GOOGL, GRMN, GE, INTC, LQD, M, MCD, MPEL, NKE, RACE, RAI, RH, RL, SINA, T, TWTR, UA, VALE, VZ, XOM and short SPY, XRT. Tim's firm is long ABX, BABA, BIDU, CLF, EWZ, F, HD, KO, MCD, MPEL, NKE, PEP, PF, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, YHOO, short HYG, IWM

David Seaburg

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc. Cowen has a financial interest In EDIT.

Steve Grasso

Steve Grasso is long BA, CC, EVGN, JCP, KBH, MJNA, MU, OLN, PFE, PHM, T, TWTR, GDX. Grasso's children own EFA, EFG, EWJ, IJR, SPY. No shorts. Stuart Frankel & Co Inc. and some of its Partners are long JCP, AAPL, LDP, WDR, AVP, CVX, FCX, IBM, ICE, KDUS, KO, MAT, MCD, MJNA, NE, NEM, OLN, OXY, RIG, STAG, TAXI, TEX, TITXF, URI, VALE, WDR, WYNN, ZNGA, CUBA, HSPO, ICE, AMZN, MJNA, TITXF, NXTD

Guy Adami

Guy Adami is long CELG, EXAS, GDX, INTC. Guy Adami's wife, Linda Snow, works at Merck.