January 2026 SAAR declined to 14.9 million units, reflecting seasonal weakness, weather disruption, and lingering effects from Q4 tariff and EV credit dynamics. While transaction prices and consumer spending remain firm, brand-level inventory divergence and affordability pressures are shaping margin outlooks for dealers.

Auto retail has always been cyclical. While headlines often focus on the why (e.g. interest rates, inventory levels, or near-term economic uncertainty), seasonality remains one of the most consistent forces shaping monthly auto sales performance. Over the past decade, even amid supply chain disruptions and changing consumer behavior, the industry’s calendar-driven rhythm has remained remarkably durable.

The U.S. auto industry closed 2025 with modest sequential improvement, surpassing 16 million units for the first time since 2019. While volumes stabilized late in the year, continued year-over-year declines, rising incentives, and uneven inventory levels across brands highlight a market that is normalizing rather than accelerating. As the industry moves into 2026, disciplined inventory management and margin preservation will be critical drivers of dealer performance and franchise value.