Weather freezes January auto sales

Edmunds.com sees opportunities for car shoppers due to winter weather.


The relentless blast of winter weather likely kept car shoppers away from dealerships in January, says Edmunds.com, the premier destination for car shopping. Edmunds.com forecasts that 1,036,533 new cars and trucks will be sold in the U.S. in January for an estimated Seasonally Adjusted Annual Rate (SAAR) of 15.6 million. The projected sales will be a 23.6 percent decrease from December 2013, and a 0.6 percent decrease from January 2013.

January's weather complications mean that sales will likely be made up in February. Fortunately, says Edmunds.com, car shoppers will find a friendly buying environment to make their big purchases.

"Even though 2013 year-end sales events have long passed, market conditions remain quite favorable for buyers," says Edmunds.com Chief Economist Lacey Plache, PhD. "In particular, interest rates, monthly lease payments, and trade-in values are all at some of the best levels expected for the foreseeable future."

SALES VOLUME FORECAST, BY MANUFACTURER

Sales Volume

 

Jan-14 Forecast

Jan-13

Dec-13

Change from Jan 2013*

Change from Dec 2013*

GM

176,541

194,699

230,157

-9.3%

-23.3%

Ford

155,819

165,863

216,592

-6.1%

-28.1%

Toyota

151,195

157,725

190,843

-4.1%

-20.8%

Chrysler Group

128,322

117,731

161,007

9.0%

-20.3%

Honda

98,066

93,626

135,255

4.7%

-27.5%

Nissan

88,070

80,919

109,758

8.8%

-19.8%

Hyundai/Kia

82,182

80,015

96,636

2.7%

-15.0%

VW/Audi

37,620

39,074

51,028

-3.7%

-26.3%

Industry

1,036,533

1,042,530

1,356,984

-0.6%

-23.6%

 

 

 

 

 

 

 

*NOTE: January 2014 had 25 selling days, January 2013 had 25 and December 2013 had 25.

 

 

 

 

 

 

 

Edmunds.com's Deals of the Month page identifies some of the strongest deals available right now, including $1,500 off a 2013 Hyundai Elantra and 0% financing for 60 months on a 2014 Chrysler Town and Country minivan.

Dr. Plache cautions, however, that those strong buying conditions are bound to weaken. Auto loan rates, for example, are likely to rise in the near future, and trade-in values will likely soften as used car inventories grow. Dr. Plache sheds more light on today's car shopping market at http://www.edmunds.com/industry-center/commentary/car-shoppers-find-appealing-deals-even-after-holiday-sales-events.html.

MARKET SHARE FORECAST, BY MANUFACTURER

 

 

 

 

 

 

Market Share

 

 

 

 

 

 

Jan-14 Forecast

Jan-13

Dec-13

Change from
January 2013
(Percentage pts.)

Change from December 2013
(Percentage pts.)

GM

17.0%

18.7%

17.0%

-1.6%

0.1%

Ford

15.0%

15.9%

16.0%

-0.9%

-0.9%

Toyota

14.6%

15.1%

14.1%

-0.5%

0.5%

Chrysler Group

12.4%

11.3%

11.9%

1.1%

0.5%

Honda

9.5%

9.0%

10.0%

0.5%

-0.5%

Nissan

8.5%

7.8%

8.1%

0.7%

0.4%

Hyundai/Kia

7.9%

7.7%

7.1%

0.3%

0.8%

VW/Audi

3.6%

3.7%

3.8%

-0.1%

-0.1%

Edmunds.com estimates that retail SAAR will come in at 12.9 million vehicles in January, with fleet transactions accounting for 17.3 percent of total sales. An estimated 2.89 million used cars will be sold in January, for a SAAR of 35.3 million (compared to 2.41 million – or a SAAR of 35.2 million – used car sales in December).

More insight into recent auto industry trends can be found in Edmunds.com's Industry Center at http://www.edmunds.com/industry-center/.

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