New-vehicle sales in the U.S. picked up in February, with sales up nearly 10% from a year ago.
Total new-vehicle sales in February are now estimated at 1.25 million, above our forecast of 1.22 million units and up 9.6% year over year, according to officials at Cox Automotive. The increased was credited top warmer weather and increasing consumer sentiment as measured by Morning Consult combined to help sales improve notably from the January slowdown.
The seasonally adjusted annual rate (SAAR), or selling pace, came in near 15.8 million for February, up from January’s 15.0 million level and the 14.9 million pace recorded in February 2023. The 15.8 million sales pace was higher than the average pace over the past six months.
Toyota and Honda led the sales surge as the two companies had more inventory on hand than one year ago. Industry-wide new-vehicle inventory levels started February at 2.61 million units, an increase of 50% as compared to February 2023.
Higher inventory levels—days’ supply of new vehicles at the start of the month was at 80 days —has led to increasing incentives and discounts, according to Cox, helping bring buyers back into the market and putting 2024 on pace for the best year of new-vehicle sales since 2019.