Used Cars And Trucks For Sale By Owner, Leases, used car sales could be hurt by tax refunds: What to know


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Used Cars And Trucks For Sale By Owner, Leases, used car sales could be hurt by tax refunds: What to knowTraders continue to offer aggressive leasing for small cars such as the Chevrolet Cruze. REPORT – In this photo, taken on 8 September 2010, car manufacturer Brenda Hedland photographed Chevrolet Cruze’s first compact sedan during a ceremony at the GM plant in Lordstown, Ohio. (Photo: Amy Sancetta, AP)

Warnings broke out a few years ago: 2019 is the year of the ‘revenue tsunami’.Excessive supply of cars, trucks and sport utility vehicles that were leased a few years ago should be canceled and sold to dealers in a three-year lease term, which would result in lower prices for used cars. By 2019 we have to reach a maximum of 4.1 million rented vehicles.

The dangers of tsunami continue, but experts say the impact is not serious, predict predictors and analysts on Wall Street.The prices of used vehicles are strong enough, while the labor market remains strong and the American economy continues to grow.

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“What we see is that we have a hot economy and all these rented vehicles are being taken up,” said Charlie Chesbrough, chief economist at Cox Automotive. Cox has places to buy cars, such as Kelley Blue Book and AutoTrader.

Of course, the risks remain. The sudden fluctuations in the stock market, the closure of the federal government and the news of layoffs at large companies, including General Motors, can undermine confidence. Who in Michigan does not know anyone who is afraid of losing a job?

Another unknown hiding place: how does your tax return relate to last year’s payment?

Tax refunds play an important role in the sale of used cars. A $ 2500 or $ 3,000 discount on income tax can be a big drop, especially for a used car.Rush hour for the sale of used cars usually follows when most households receive a tax refund, says Jonathan Smoke, chief economist at Cox Automotive.

In the meantime, there is growing concern that some households will receive significantly lower costs or even pay more than the expected tax bill because in 2018 they will receive more money every week for tax changes. keep the table in accordance with the new federal tax legislation.

The analysis of employee retention of Cox Automotive showed that the amount deducted from the payroll tax review is even lower than the tax rate that has to be reduced.

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