Economic Outlook: Source

The current automotive tax season is about 3/4 of the way through and we’re finally catching up to our 2023 refund distribution averages. We’re currently 3% behind 2023 and 12% behind 2020 fours reef fund volume at this time in those years.

62% of refunds have been processed leaving 38% still pending for the last third of the tax refund season. That’s good news but the better news is that the tax refund amount is holding at about 5% higher year over year which means consumers have more money than expected to spend.

 

 

Wholesale: Source

  • The 3-year-old index dropped 0.3% to 101.5%.
  • Wholesale values decreased for all model years.
  • The used retail sales rate dipped lower last week w/ days’ supply up to 42 days.
  • New car sales moved down so far in April w/ supply moved up to 79 days.
  • Four of the nine Car segments increased last week.
  • Eight of the thirteen Truck segments increased last week.

 

Finance Market Trending: Source

  • Percent of loans above APR of about 3% or more is still at 12.4%.
  • More interesting is the percentage of loans that are 0% APR is still almost 3%.
  • Used car auto rates as high as 14% with new car rates as high as 8% before incentives.

 

Summary: Source

The market is starting to soften. The sales rate is moving up and down every other week based on market and economic conditions driven by affordability. The key to success is more direct from consumer activity that helps maintain profitability through actual vs appraised accuracy. Something we will talk about today.[/vc_column_text][/vc_column][/vc_row]