Automotive Market Update 4-10-24

Margin Monitoring

As we edge closer to the tax deadline, recent data reveals an intriguing trend: the Internal Revenue Service (IRS) reported receiving 90.3 million returns by March 29, marking a 0.2% increase from the previous year. The average tax refund has risen by 4.8% to $3,050.

With the positive momentum coming out of tax season, the inflationary momentum that built up over the last few years is taking a while to peter out. As a result, the U.S. economy’s key price indexes, including the CPI and PCE, moved sideways in early 2024 at levels above those consistent with the Fed’s inflation target.

Thinking through that for Automotive, increased returns have been what fueled the sales so far this year and decreased used day supply keeping used car prices up. However, these economic indicators tell us….. Read more HERE.