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Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.
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Overall conditions in February tipped slightly in consumers’ favor as prices stayed high, granting a reprieve of sorts just before the war on Iran commenced and started to reverse the welcome trend.
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The February average transaction price was well above a three-year average annual bump, but Cox analysts consider today’s prices to be on the normal side.
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Though traffic and profits were down in the first quarter, normally optimistic franchisees and independents saw dim current conditions while holding out visions of healthy spring sales.
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Though some factors are against consumers, others balanced them out in January. Still, average monthly loan payments were up year-over-year, Cox Automotive said.
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Growing access shows greater lender appetite for risk as consumers take on heavier debt burden in an inflated market.
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Though the retail sales pace rose in December, used inventory remained steady at 2.2 million, according to Cox Automotive.
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2025 was the second-best year on record for EV sales in the U.S., according to Cox Automotive, despite a sharp decline in the fourth quarter after the end of a federal tax credit.
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The new-vehicle average transaction price hit a new record as 2025 closed, shifting into higher gear in part from the sale of large vehicles.
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Cox Auto projects a modest fall from last year’s roller coaster sales that were sparked partly by consumers beating policy-powered prices. More volatility could be on the horizon.
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