Earnings tax refunds, effortless credit score buoy employed-motor vehicle costs

Utilized-vehicle prices, bolstered by consumers making use of their revenue tax refunds to buy utilized autos and trucks, rose .8 percent in February from January and one.one % from February 2013, the Manheim Employed Motor vehicle Value Index showed today.

The index — adjusted for car make, model, mileage and time of yr — stood at 123.3 in February, up from 122.3 in January and 122 in February 2013.

Manheim mentioned that the IRS had processed forty.4 million tax refunds via Feb. 21, up 6 % from the very same time last yr. These refunds totaled $ 125.8 billion with the average refund escalating 4 % to $ 3,112.

“A surge in personal revenue tax refund disbursements in late January and early February played a function in propping up wholesale values final month,” the auction company’s consulting arm wrote in a commentary accompanying the index.

“In addition, readily obtainable retail financing (at eye-catching terms) produced the utilised-motor vehicle retail market place more rewarding than the underlying unit sale numbers would recommend,” the commentary mentioned.

Citing data from CNW Analysis, the commentary explained complete used retail sales in February slipped 1 percent from a yr earlier and twelve % from January 2014 to 2.05 million units.

Looking at car segments, the common value of used compact vehicles in February fell 3 percent from February 2013 as a outcome of ample supplies and pricing competition from their counterparts in the new-auto industry, the commentary noted.

But prices of utilised pickups rose 8 percent from a year earlier since of high demand and tight supplies.

You can attain Arlena Sawyers at asawyers@crain.com.

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