February Auto Sales Break the Ice on Frozen Inventory

• Both average new- and used car prices are up to $49,452 and $29,209, respectively, or 1.5% and 2.6% year over year.

   

• New-car inventory contracted 3% while used-car inventory stayed flat.

   

• Used inventory acquired in February was more expensive, signaling higher costs for dealers and shoppers.

February new-auto sales rebounded from the sluggish start to the year, but still paced 1.4% lower year-over-year. The first two months of the year are typically light for car sales, and with an optimistic outlook on this year’s tax season, March will be the first big test of consumers’ willingness to buy.

Winter Weather Freezes Inventory

What does the weather have to do with auto sales? February’s Cars.com data show the impact of two large winter storms. Regions impacted by January’s storm Fern saw an above-average surge in February from the arrival of weather-delayed new-car inventory, and February brought its own icy mayhem with bomb cyclone Hernando, which effectively froze dealership logistics in the Northeast and also led to an inventory decline. 

Overall, new-car inventory is down 3.1% compared to a year ago, but February ended with 3.1% more new vehicles than it started with. Meanwhile, used inventory remained on ice with a 0% change from a year ago.

EV Inventory Disruptors

In addition to weather delays, more than 30 slower-selling models were discontinued in the last year, further reducing inventory numbers. The majority of the discontinuations were EVs and plug-in hybrids, not a surprise as automakers adjust production to match consumer demand and changes in federal policy. 

The largest disruptors to new-car inventory growth were the Toyota RAV4, with less than half its inventory on dealer lots compared to a year ago, and the Ford F-150, down a third from this time last year. Slim RAV4 supply is somewhat by design, as Toyota temporarily suspended production to reconfigure factories to build the completely redesigned 2026 RAV4, while the drop in F-150s is the result of production constraints related to a fire in a supplier’s factory last fall. Excluding discontinued models and the RAV4/F-150, inventory for all other vehicles increased by 2.4% YoY.

Despite inventory challenges, the pace of sales increased for both used and new vehicles; both categories are spending less time on dealer lots compared to a year — or even a month — ago. As cold weather departs, tax returns come in and inventory stabilizes, March should give a strong picture of how consumers are feeling, and more importantly, spending, in the current automotive environment.

2026 February Industry Insights Report

Explore the full report to go deeper on 2026 consumer demand, market supply, pricing, affordability and more for your corner of the market.