Used Car Sales Red Hot, Tax Season Will Make Things Hotter
January sales of used cars are red hot, according to ALG, the analytics subsidiary of TrueCar. They are calling for sales of 3.33 million units, a 6 percent bump over January 2019, and a 12 percent rise over December 2019.
Whew! And tax refunds aren’t even due to start flowing to consumers until mid-February! Last month Jonathan Smoke, chief economist of Cox Automotive, predicted a 20% and 30% increase in used car sales the last week of February as tax refund season begins, and, he said, sales are expected to remain elevated through mid-April.
New car prices rose to a new record at the end of 2019 to just over $39,000 late last year, and that has pushed many buyers out of the new vehicle market and into used vehicles. While new car prices continue to rise, wholesale prices on used cars remain strong, but haven’t spiked tremendously. Traditionally, wholesale prices rise in the spring, and as we enter that season, dealers can expect to pay more for vehicles at auction.
Keeping that lot full of choices for your tax season customers is an expensive proposition. Costs continue to climb for inventory, staffing, real estate, legal and regulatory compliance, marketing and more. It’s essential for finance professionals in the BHPH and subprime finance marketplace to adequately protect their collateral as it heads out down the road.
GPS Tracking and the automotive analytics it provides has become vital to dealers. It’s not just about knowing where the vehicle is in the event of a default. The data gathered can assist dealers with verifying stips, provide notifications of impound lot entry, verify the vehicle’s VIN, and so much more. In short, our Advantage GPS devices provide a wealth of information that help you decide what to do if a customer is overdue on his account. Over time, this data can assist you in making future funding decisions based on the past history of customers with similar jobs, income, locality of where they reside. Advantage GPS Evo and wireless Revo devices provide you this data in real-time in a very user-friendly format.
I hope your tax season is tremendous. It really is the Black Friday of the used vehicle industry. If you would like to learn more about what Advantage GPS can do for you to protect your assets and help you make smarter business decisions, please give me a shoot!