Economic Outlook: Source

  • The Bureau of Labor Statistics showed:
    1. The median worker experienced a 5.5% increase in earnings during 2023.
    2. That falls short of the 7.1% inflation adjustment implemented by the Internal Revenue Service
    3. The IRS adjusts more than 60 tax provisions annually, including tax rate schedules for low to mid-income earners should see a slight increase in their returns this year.
    4. Upper middle to high-income earners will not and in fact may see a slight reduction.

 

Wholesales to Retail Trending: Source

  • The 1-year-old (2022 MY) % spread decreased by 0.34% from 11.40% last week to 11.06% this week.
  • The 3-year-old (2020 MY) % spread increased by 0.15% from 13.75% last week to 13.90% this week.
  • Week-over-week values increased 0.2%. Luxury increased 0.2% and non-luxury increased 0.3%.

 

Fixed Ops Outlook: Source

  • The average labor hours per customer repair order have significantly decreased.
  • Tech has allowed for high-volume models now require as little as 1.0 to 1.4 hours,
  • That is compared to the common 2.5 to 3.0 hours of years past.
  • Having a comprehensive service advisor conversation at check-in and throughout the process has been shown to produce an increase of .5 HPRO. This increased HPRO activity annualizes to about $300,000.00 per year on 500 RO’s.
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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