Economic Outlook: Source

The IRS said its issuing bigger tax refunds compared with a year earlier, signaling a potential boon for Americans who rely on their annual refund to help with debt or purchases.

Seven weeks are remaining in the current tax season, which means that the data could fluctuate until the IRS stops accepting tax returns on April 15. (Tax filers can also ask for an automatic extension, which gives them until October 15 to file their tax forms.)

So far, about 34.7 million people have filed tax returns, a fraction of the 146 million individual tax returns that the IRS expects this year.

 

 

New and Used Retail Sales  and Day Supply Trending: Source

  • New car sales continue to trend higher than some previous years, but inventory also continues to build. Days’ supply dropped to 58 at February month end.
  • The used retail sales rate continues its strength despite lower inventory levels. At 33 days, the days’ supply is lower than most previous years.
  • According to BB, the average days to turn are starting to decrease as well. At the height of 63 days in January, we’re now down to 55 days in early March.

 

 

Vehicle Acquisition Values & Trends:

  • Three-year-old wholesale values increased 0.9% (all age vehicles increased week over week),
  • Lane efficiency increased 4% – 6% pts,
  • Sale prices are in line with MMR.
  • 1- to 10-year-old vehicles are growing in appreciation each week with week 9 showing growth of over 1% for 4- to 10-year-old vehicles

 

Summary: Source

Used inventory in the next few weeks should continue to increase, and buying the inventory you need now even though it feels like overpaying a little bit but waiting until you need the inventory will most likely cost more.

The key is to match your inventory acquisition to your sales 30-day rolling sales rate while matching price band and segment attributes that match your market demand. Reach out to the team for a discussion on your strategy. info@theautomotiveadvisorteam.com

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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