2026 Game Plan: January Is Your New March (And How to Capitalize on It)

If you're a used car manager waiting for the traditional spring bounce to save your numbers, you're already behind. The data tells a different story for 2026—one that demands we start strong in January, not wait until March to catch up.

On a recent episode of LotTalk, Jasen Rice, President and CEO of LotPop, broke down the critical market shifts happening right now and exactly what dealers need to do to dominate Q1. The insights are eye-opening, and if you're not paying attention, your competition will eat your lunch.

The Market Landscape: More Cars, Same Shoppers

Let's start with the numbers that matter. Year-over-year data shows we're sitting on significantly more inventory—both new and used—while shopper volume remains relatively flat.

Currently, there are about 2 million new cars on Auto Trader and 1.6 million on Cars.com, up roughly 200,000 units since September. On the used side, inventory jumped from 1.4 million and 1.2 million to 1.5 million and 1.3 million respectively. That's over 100,000 more used cars competing for the same pool of buyers.

Here's what that means for you: more competition, more pressure on pricing, and a critical need to differentiate your inventory and merchandising.

The Pent-Up Demand You Need to Understand

Google search interest for "used cars" is showing something fascinating. Traditionally, February and March see the highest search volumes of the year. But in 2025, July and November caught up—and even exceeded—those spring peaks.

Why? Rice pointed to two significant announcements from then-President-elect Trump about a potential $2,000 rebate per person related to tariffs. The first mention came in July, then resurfaced during his November meeting with automotive industry leaders and NADA.

"That right there, plus the meeting with the dealers association about tariffs and what they're trying to do in the automotive world—I think that correlates right here," Rice explained. "That to me would mean there's pent-up demand."

People heard about potential extra cash and started window-shopping. Now we're entering tax season under a new administration, and those same shoppers are getting ready to convert. The question is: will they buy from you?

The January Reality Check: Volume Is Down, But Opportunity Is Up

Looking at LotPop's dealer two-week sold percentage—a metric tracking what percentage of inventory turns in 14 days—the current rate sits at 38%. Last year at this time? It was 41%.

But here's the kicker: Rice anticipates this is the valley before the mountain. Historically, these numbers climb starting in late January and peak in early March. With shopper interest slightly elevated year-over-year and potential tax incentives on the horizon, the dealers who position themselves now will capture disproportionate market share in Q1.

Your Four Critical Action Items for January 2026

1. Kill Your Aged Inventory—Now

If you have cars sitting on your lot that have been there for 60, 90, or 120+ days, they're not just hurting your balance sheet—they're destroying your team's morale.

"Aged inventory is crushing the morale inside your dealership," the hosts emphasized. "Turn and burn that inventory, give them something fresh."

Think of it like groceries. Nobody gets excited about stale bread and rotting fruit. Your sales team rallies around fresh, desirable inventory. Wholesale those aged units, take the hit, and reinvest in cars that will actually move. Your lot needs to feel alive.

2. Shop by Price, Sell by Payment

This is especially critical for dealers in leasing-heavy markets across the Northern states, East Coast, and West Coast. Consumers increasingly shop by price but make buying decisions based on monthly payment.

Here's where it gets interesting: a $10,000 difference between a late-model used car and a brand-new vehicle might only translate to a $50-75 difference in monthly payment. If your team isn't armed with that payment comparison, you're losing deals to new car departments—or worse, to competitors.

Rice warned this payment compression "could start driving your used car values down sooner than later." Stay ahead of it by merchandising payment options prominently and training your team to lead with payment-based value propositions.

3. Merchandise Like Your Business Depends On It

Because it does. The difference between a car that sits and a car that sells often comes down to how it's presented online. High-quality photos, detailed descriptions, accurate pricing, and compelling copy aren't optional—they're table stakes.

But here's where most dealers fail: they do great merchandising and then fumble the follow-up. You can't half-ass this part.

4. Audit Your Follow-Up Process Yesterday

This is where Rice really drove the point home. You can source the right inventory, price it competitively, merchandise it perfectly, and drive quality traffic to your dealership. But if your team drops the ball on follow-up, all that work means absolutely nothing.

"All the work you did to get that inventory in your dealership is for nothing, for absolutely nothing," the hosts stressed.

Ask yourself two questions:

1. Do you even have the right follow-up scripts? Are they relevant? Compelling? Designed to move prospects through the funnel?
2. Is your team executing those scripts? Having great scripts sitting in a drawer doesn't sell cars. Consistent execution does.

If you can't confidently answer "yes" to both questions, stop reading this and go fix it. Today.

The Bottom Line: 2026 Won't Wait for You

The dealers who dominate in 2026 won't be the ones waiting for March to save them. They'll be the ones who started aggressively in January—turning aged inventory, merchandising strategically, mastering payment-based selling, and executing relentless follow-up.

The market conditions are setting up favorably. Shopper interest is elevated. Tax season is coming. A new administration brings fresh economic sentiment. The inventory is out there.

What you do in the next 30 days will determine whether you're chasing the market all year or leading it. As Rice and the LotTalk hosts made clear: the data is here, the opportunity is real, and the time to move is right now.

Don't wait for March. 2026 is staring you down asking, "What you got?"

Make sure your answer is: Everything.

About LotTalk Podcast: LotTalk is powered by LotPop and hosted by Chris Keene, John Anderson, and Renaldo Leonard. The podcast brings actionable insights, industry trends, and expert analysis to automotive professionals. Listen on YouTube, Spotify, Apple Podcasts, or visit lottalkpodcast.com.