Edmunds.com: Winter Weather Freezes January Auto Sales, but Shoppers Can Warm up to Available Deals
Santa Monica, Calif. — The relentless blast of winter weather likely kept car shoppers away from dealerships in January, said Edmunds.com, which 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, noted 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," said Lacey Plache, chief economist. "In particular, interest rates, monthly lease payments and trade-in values are all at some of the best levels expected for the foreseeable future."
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. 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).
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