Topic: industry pulse

Industry Pulse: it’s more than just tax cuts impacting the used vehicle market

Posted by Meg Bernazzani on June 3, 2019

At CarGurus, we’re always looking for ways to share more industry insights with our valued dealers. Today, our Director of Automotive Industry and Economic Analysis, George Augustaitis, takes a look at how tax cuts and dwindling inventory are affecting the used car market.

The IRS started to release information on tax returns in the first week of February. As the data from the IRS changed over time, the media released weekly headlines, whipping back and forth between negative and positive:

Tax Refunds down 8.7%…”

Here’s why the average tax refund check is down 16% from last year

After a slow start, tax refunds are ticking up…”

Tax refunds are up from last year…”

About 8 million individuals who received a refund last year may owe this time

To date, the IRS has reported filings through the week ending May 10, 2019, and at first glance, the average refund is down 1.7%.

While the key metrics—total number of refunds, amount of money issued, and average refund—show a negative story, refunds alone aren’t the factor driving change in used car sales in the US.

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Topics: CarGurus data, industry news, industry pulse, trends