Latest Online Edition  Read Here

THE GOOD FIGHT: Paul John, executive director of the Georgia Independent Automobile Dealers Association, discusses how the association fought against state legislation that would have raised the taxes on used-car purchases.

Average Refunds Higher, But Total Refunds Lower

Average Refunds Higher, But Total Refunds Lower Featured

Tax season seems to finally be under way.

Peter Saldamarco, president of Central Auto Auction in Hamden, Conn., said he saw a dramatic uptick in activity at the end of February.

“Tax checks must have come out because it just boomed,” Saldamarco said.

Early season refund numbers and dollar amounts were affected by the new law requiring refunds involving the Earned Income Tax Credit and Additional Child Tax Credit to be held until the later part of February. Many taxpayers claiming these credits traditionally file during the opening weeks of tax season.

As of March 10, the Internal revenue Service received 69,403,000 returns and had processed 67,290,000, refunding  more than $167 billion. The average refund so far is $2,973.

Last year at this time, the IRS had received 74,456,000 and processed 72,164,000, refunding almost $176 billion. The average refund was $2,945.

Calendar year-to-year comparisons are difficult at this early point in the season as four additional days of tax return processing are included in the 2016 totals, the IRS states.

Still, used-car dealers seem to be getting their fair share of the money that is coming back, said Manheim chief economist Tom Webb.

“The unusual flow of tax refund monies this year appears to have had less of an effect on dealers than one might expect, especially since other retailers (most notably, TV and appliance stores) did notice a significant impact,” Webb said.

 

 

Last modified on Friday, 17 March 2017 13:57
Rate this item
(0 votes)

Related items

  • CarMax Attempts to Keep up with Changing Tech Demands

    During the most recent CarMax Inc. quarterly earning call, Morgan Stanley analyst asked an audacious question: “Could CarMax be Amazon’s Whole Foods of automotive retail?”

    Jonas is none for his provocative stance on every aspect of the auto industry from finance to self-driving cars.

    CarMax executives gave a very vague answer to his question and moved on.

    However, many others are raising more basic questions about CarMax’s digital strategy, especially in light of Carvana Co.’s rapid growth.

    CarMax now makes a point in its grand opening press releases to include language about how the company “disrupted the industry more than 20 years ago.” The releases also state that 90 percent of of CarMax purchasers start the process on CarMax.com or the CarMax mobile app.

    The releases have always said that each new CarMax store includes more than 100 “used vehicles of nearly every make and model.” However, now they add that customers can order any vehicle they want online from any CarMax store nationwide and have it delivered to that location.

    CarMax is also experimenting with home delivery. The company has been running a pilot program in Charlotte, N.C.

    “We’re pleased with were where at with home delivery at this point,” said CarMax CEO Bill Nash.

    There are no definite plans to expand to other market at this time, but said the company is looking at its options.

    One part of the process is gaining a wider reach and that is online appraisals. CarMax will add this service in the Midwest in the next few months.

    The company is also working on a more used-friendly online finance tool.

    It remains to be seen if Wall Street will consider this enough innovation at a fast enough pace.

  • CarMax Adds Another Texas Store

    CarMax Inc. is celebrating the grand opening of the company’s first location in the Tyler area and 17th location in the state of Texas.
    The store is located at 3015 SSW Loop 323 and has the capacity to stock approximately 140 used vehicles.
    In celebration of the Tyler store opening, CarMax and The CarMax Foundation awarded $7,500 in donations and grants to the Tyler Independent School District Foundation. Support for this organization came at the recommendation of the Tyler CarMax associates.

  • CarMax Hires for Northwest Addition

    CarMax Inc. is hiring to fill 50 positions for a new CarMax location in Renton, Wash.
    The new store is slated to open in November. The Renton store will be located at 3751 E. Valley Road.
    This will be the third CarMax location in the Puget Sound region, joining stores in Puyallup and Lynnwood.

CarMax Attempts to Keep up with Changing Tech Demands

CarMax Attempts to Keep up with Changing Tech Demands

During the most recent CarMax Inc. quarterly earning call, Morgan Stanley analyst asked an audacious question: “Could CarMax be Amazon’s Whole Foods of automotive retail?” Jonas is none for his...

Dealers Use In-House CRM to Drive Sales

Dealers Use In-House CRM to Drive Sales

Robert Beck, president, Stop ‘N Drive Motors, San Antonio, Texas: “We have one location and we opened up in 2005. “We usually stock about 40 to 50 cars. We have...

  • CarMax Moves into New Market
    CarMax Moves into New Market CarMax Inc. celebrated the grand opening of its first store in Michigan, located in Kentwood at 4431 28th Street. The Kentwood store will have the capacity to stock approximately 200…
  • DMS Incorporates Carfax
    DMS Incorporates Carfax Auto/Mate Dealership Systems has integrated its dealership management system with myCarfax Service Shop tools to help their dealer customers increase the success of their fixed operations. This enhancement makes it…
  • CarMax Opens Store in Northeast
    CarMax Opens Store in Northeast CarMax Inc. celebrated the grand opening of its new store in Albany, N.Y.The store is located at 1860 Central Ave. The Albany CarMax has the capacity to stock approximately 200…
  • CarMax Grows in California
    CarMax Grows in California CarMax Inc. is currently hiring more than 40 associates for the company's third store in the Bay Area of California. The store, scheduled to open in November, will be located…
  • CarMax Reports Higher Sales, Revenue
    CarMax Reports Higher Sales, Revenue CarMax Inc. reported higher sales and revenue for the second quarter ended Aug. 31. Net sales and operating revenues increased 2.9 percent to $4 billion. Used unit sales in comparable…
  • TV Host Takes Cheap Shot at Dealers
    TV Host Takes Cheap Shot at Dealers The latest attack on subprime automobile dealers came in the form of HBO’s satirical news/comedy show “Last Week Tonight with John Oliver” on Aug. 14. The 17–minute segment slammed the…

    Auto Lending: Last Week Tonight with John Oliver (HBO)
  • Carvana Moves into Midwest
    Carvana Moves into Midwest Carvana announced its expansion into Columbus, Ohio. This launch marks the company’s first market in the Midwest region and first in the state of Ohio. Columbus marks Carvana’s seventh new…
  • America’s Car-Mart Moves Fewer Units
    America’s Car-Mart Moves Fewer Units America’s Car-Mart Inc. reported net income of $7.1 million in the quarter ended July 31.The buy-here, pay-here chain reported revenues of $146 million compared to $143 million for the prior…
  • Carvana Partners with Credit Union
    Carvana Partners with Credit Union Carvana has partnered with LGE Community Credit Union. Through the partnership, LGE members can browse Carvana's online inventory of vehicles and purchase a car and have it delivered to them…
  • Dealers Use In-House CRM to Drive Sales
    Dealers Use In-House CRM to Drive Sales Robert Beck, president, Stop ‘N Drive Motors, San Antonio, Texas: “We have one location and we opened up in 2005. “We usually stock about 40 to 50 cars. We have…