Economic Outlook: Source

  • As of March 1, the latest data available, the Internal Revenue Service reported that the average refund was up 5.1% from $3,028 during a similar timeframe through March 3, 2023. That is 3% higher than reported two weeks back.
  • The flipside: The number of tax refunds issued so far is down from a year ago. The IRS issued 36.28 million tax refunds through March, down 13.7% from a year ago.
  • The total amount refunded through March 1 was nearly $115.5 billion, down 9.3% from a year ago.
  • As inflation relief stagnates, more consumers walked away from or traded down on pricey goods and services in February than in previous months.
  • Middle-income adults’ demand has fallen more in line with that of the lowest income group as these consumers increasingly rely on cost-saving measures, while high earners fuel demand growth.

 

New and Used Retail Sales and Day Supply Trending: Source

  • Total new-light-vehicle sales  were up 9.6% in February from a year ago, and up 16.6% from January.
  • Certified pre-owned (CPO) sales increased 5% from January and were up 2% from a year ago.
  • The used car sales rate dropped lower in early March but still ahead of most previous years.

 

Fixed Ops Stats: Source

  • In early 2024 consumer demand is sitting between 20 and $30,000 price ranges.
  • $20,000 cars 2.7 years older and have 22 1300 more miles versus February 2019
  • On average today’s VIO have 11,000 more miles and are two years older than in 2019.

 

John Ellis CEO & Founder of The Automotive Advisor Team, LLC

Author: John Ellis

Founder & CEO Agile Auto, Inc, The Automotive Advisor Team, Inc. BEVEveryting, Inc. Double E Consulting, Inc.

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