Retail Transaction Prices Declined In January

January 2026 Market Report

• Retail transaction prices declined -4.4% month-over-month in January following December’s year-end lift, reflecting typical seasonal recalibration rather than demand weakness.

• Wholesale pricing increased 1.7% over the same period, resulting in a modest compression of the retail–wholesalespread while preserving overall margin stability.

• Used gross and F&I profit improved 4.5% from December, indicating stable execution despite lower average transaction prices.

• Days-to-turn declined to 49 days from December’s peak of 51, reflecting improved early-year inventory flow.

• Retail sales rose nearly 18% year-over-year, marking the strongest January in the past five years and signaling sustained buyer engagement.

• Overall supply conditions remain stable entering 2026, even as younger vehicle cohorts begin to gradually rebuild.