January auto sales fall slightly because of storm

U.S. auto sales fell slightly in January because of the East Coast snowstorm, but analysts say demand remains strong and buyers will likely head back into dealerships this month.

Sales fell less than 1 percent to 1.1 million, according to Autodata Corp. The mid-January storm, which buried New York and Washington under more than 2 feet of snow, cost automakers around 15,000 vehicle sales, said John Humphrey, J.D. Power’s senior vice president of automotive.

Even with the lackluster results, analysts still expect another record year for U.S. vehicle sales.

Low gas prices, low interest rates and an enticing lineup of new vehicles — particularly small SUVs like the Nissan Rogue and the Ford Edge — are continuing to draw shoppers.

Buyers should expect those numbers to go even higher over the next few months as Japanese automakers try to boost their sales before the end of their fiscal year in March.

Ford said its F-Series pickup truck sales fell 5 percent in January partly because it spent less on incentives than its competitors.

[...] over the long term, incentives can hurt resale values and brand image, and they also cut into automakers’ profits.

Even police departments prefer SUVs; Ford’s police sedan sales dropped 33 percent but its police SUV sales were up 15 percent.