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February New-Vehicle Sales Show Modest Recovery Despite Ongoing Market Headwinds

New-vehicle sales in February are expected to show modest improvement compared to January, even as winter weather and economic uncertainty continue to weigh on the market. The seasonally adjusted annual rate (SAAR) is projected to reach about 15.6 million units, lower than last February’s 16.0 million but higher than January’s weather-impacted pace of 14.9 million.

Cox Automotive forecasts total February sales of roughly 1.19 million vehicles, a 3.4% decrease from the same month last year. However, sales are expected to rise 6.9% from January despite having two fewer selling days, which follows typical seasonal patterns.

Market challenges remain significant. High vehicle prices, concerns about the broader U.S. economy, and the expiration of electric vehicle tax credits last year continue to slow demand. These factors are expected to remain key obstacles for the new-vehicle market throughout 2026.

Still, some improvement may come in the months ahead as consumers begin receiving tax refunds. Higher refunds tied to legislation passed last July could provide a short-term boost to vehicle sales.

February includes 24 selling days, the same number as last year but fewer than in January.

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