Economic Outlook: Source

  • As of Feb. 9, almost two weeks into tax filing season, the IRS had issued more than 7.4 million refunds.
  • In comparison, the IRS had sent out over 13.3 million refunds by Feb. 10, 2023.
  • Tax season last year started six days earlier, however.
  • The average refund size is also down 12.8%, from $1,997 to $1,741.
  • However, if a taxpayer’s wages do not grow to meet the 7% inflation growth rate, or file for child tax credits, they will see up to a 7-% increase in their refunds.

Wholesales to Retail Trending: Source

  • Week over week three-year-old used car values increased 0.2%.
  • Luxury increased 0.1% and non-luxury increased 0.2%.
  • Sale prices are still slightly below MMR but moving up.
  • Used retail sales stronger than in most previous years driving down used days’ supply to 42.

Summary: Source

  • In January the Repair Order Volume Index rose slightly to 82.4 YOY.
  • This represents a 2.7% increase from December but a 1.3% decrease from January last year.
  • The Repair Order Revenue Index for January is at 137.7, reflecting a 3.3% increase from the reading in December.
  • This index shows a 4.3% increase year over year and a significant 37.7% increase from January 2019, largely driven by inflation.
John Ellis CEO & Founder of The Automotive Advisor Team, LLC

Author: John Ellis

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

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