FI showroom red and grey logo
MenuMENU
SearchSEARCH

J.D. Power/LMC: Snow Storm Slows But Doesn’t Stop Car Sales in January

The two firms expect January total light-vehicle sales to total 1.1 million units, while the January SAAR is expected to have reached 16.8 million units. LMC Automotive said its sales forecast for 2016 remains at 17.8 million units.

by Staff
February 2, 2016
3 min to read


DETROIT — Despite the heavy snow that hit the East Coast in late January, an average of 36,499 new-vehicles are projected to have been sold each day — known as the daily selling rate (DSR) — at dealerships in January, a record daily pace for retail sales for the month, according to a monthly sales forecast developed jointly by J.D. Power and LMC Automotive.

The seasonally adjusted annualized rate (SAAR) for retail sales in January 2016 is expected to reach 13.9 million units, up from 13.8 million units in January 2015. That would make January’s SAAR the strongest retail SAAR since January 2004 (13.9 million).

Ad Loading...

Even with the brisk daily selling rate, new-vehicle retail sales on an absolute volume basis are expected to be down in January, due in large part to two fewer selling days compared with January 2015. New-vehicle retail sales in January are projected to reach 876,000 units, a 2.9% increase on a selling-day adjusted basis but down from 922,055 in January 2015.

Snow Storm Jonas has had a significant impact on car sales. During the storm-affected weekend (Jan. 22-24), new-vehicle retail sales were down 30% in the eastern regions, compared with the same period a year ago. In contrast, sales in the western regions increased 5%.

“The snow storm on the East Coast disrupted an estimated 15,000 sales,” said John Humphrey, senior vice president of the global automotive practice at J.D. Power. “Despite the storm, we’re still seeing a strong month. It’s also important to note that sales weren’t necessarily lost during the storm. We expect to see some of those sales made up [at the end of the month], and the majority of them recovered in February.”

Through the first 17 selling days of the month, the average transaction price of $30,769 is the highest level ever for any January, surpassing the previous high of $30,707 set in 2015.

Total light-vehicle sales are expected to reach 1.1 million units, a 3.4% increase on a selling-day adjusted basis compared with January 2015. The SAAR is expected to have reached 16.8 million units in January, up from 16.7 million in the year-ago period and the highest rate since 2006.

Ad Loading...

Fleet volume in January is projected to have reached 221,100 units, a 5.4% increase on a selling-day adjusted basis from January 2015. Fleet share is expected to be 20% for January, the same level and volume as a year ago.

LMC Automotive’s forecast for 2016 remains 17.8 million units for total light-vehicle sales, but the outlook for retail light-vehicle sales was revised down 500,000 to 14.5 million units.

“We expect 2016 to be another record year, but all eyes will be tracking the expected slower growth rate as the year progresses,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “All brands will not be able to grow as they have over the past few years, creating a higher level of competitive intensity and pressure on each brand.”

More F&I

Under the hood of a Toyota Prius EV Hybrid car.
F&Iby StaffJune 15, 2026

New Lifetime Battery F&I Product Meant to Drive Dealer Traffic

EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.

Read More →
Several illustrations of question marks on a surface
F&IJune 10, 2026

The Psychology Behind Menus That Increase Add-On Sales

There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.

Read More →
Man holding magnifying glass over sales volume paper.
F&IMay 29, 2026

Why Your F&I PVR Is Misleading You

Here’s a handy checklist of the numbers to track in 2026 instead.

Read More →
Ad Loading...
Photo of woman typing on a laptop as she sits on a couch
F&Iby Hannah MitchellMay 29, 2026

Auto Consumer Anxiety Presents Opportunity

A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.

Read More →
Dustin Gingerich standing on stage giving a presentation
F&Iby Lauren LawrenceMay 28, 2026

Humble and Hungry: 12 Rules for an F&I Life

Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.

Read More →
Photo of businessman's hands resting on files on a desk
F&Iby John TabarMay 27, 2026

Focus on the Opening

F&I managers must learn as much as possible about their customers, starting before they walk into their offices. The bulk of today’s consumers expect that, and good results will follow.

Read More →
Ad Loading...
Photo of a three-seat vehicle back seat
F&Iby Hannah MitchellMay 22, 2026

F&I Reaches for the Sky

The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.

Read More →
Cover image for a BOK Financial report titled “Timing the market: How avoiding volatility entirely can hurt long-term reinsurance program performance.” The image shows several road construction barricades with flashing amber warning lights lined up in a nighttime work zone. Beneath the image, red text explains that avoiding volatility can mean falling behind inflation and missing market rebounds that drive long-term surplus growth. The BOK Financial logo appears at the bottom right.
SponsoredMay 8, 2026

What Market Timing Mistakes Mean for Your Reinsurance Program

When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.

Read More →
Ryan Ruff, The 90/10 Rule, Automotive Training Academy, Sales Series
F&IMay 6, 2026

The 90/10 Rule

In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.

Read More →
Ad Loading...
Photo of essential oil diffuser on desk next to laptop
F&IMay 4, 2026

Your Office Is Talking

What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.

Read More →