How's your Tax Season panning out?

[John.H]

Lot of dealerships we're talking with are seeing a total repeat of last year. Tax season cars just aren't selling, and for those that are selling they're finding it hard to acquire inventory. Not to mention, banks tightening their belts & subprime loans simply not being approved like they were before. Even nonprime is getting challenging.

What are you seeing in your market? If you can mention your state, and of course what you are seeing I think that'd paint a portrait for everybody.

 

[BillKVMotorCo]

Had our 3rd best overall month ever volume wise. Had our 4th best used car month volume was. 2nd best finance month. March was awesome! April is angry with us so far.

 

[John.H]

Had our 3rd best overall month ever volume wise. Had our 4th best used car month volume was. 2nd best finance month. March was awesome! April is angry with us so far.

Exactly what we're seeing. Especially on the franchise side - lots of subprime & nobody willing to approve these deals. Not saying it's gridlocked, but tax season is a little different this year, compared to 2022.

 

[Matteon]

We're not feeling the impact of tax season like previous years. Subprime lending is tough, and many customers are not eligible due to too many repossessions and derogatories on their applications. Even cash deals are low-ballers, and nobody wants to spend.

 

[Alex Snyder]

I'm not saying it is happening here, but it is super easy to get hung up on the negatives. Human nature is more concerned with the bad than the good... it was a good way to evolve, so we'd be worried about dangers.

 

[Carsten]

Slightly off topic but my real estate buddy is saying that he's seeing a turn around.
He mentioned that people are finally getting used to interest rates that are back to normal.
I asked normal !?! He corrected me by saying those cheap rates weren't normal over the past few decades.

 

[BillKVMotorCo]

Slightly off topic but my real estate buddy is saying that he's seeing a turn around.
He mentioned that people are finally getting used to interest rates that are back to normal.
I asked normal !?! He corrected me by saying those cheap rates weren't normal over the past few decades.

Interesting. We're hearing the opposite about real estate here.

 

[Carsten]

The guy I know also does transaction coordination and pulled in his biggest group of clients since he started. He's clients are doing a great since people it seems have decided that interest rates aren't going back down to 3% so the buys are happening again.

I wonder if it's a regional thing?

 

[Jon Singo]

We're seeing high demand but also buyers getting more selective on price and APR. Had a really big Feb/March but April is off to a slow start (I'm going to blame the holiday/weird weather).

One thing I can say for sure is retail demand is nowhere near wholesale competitiveness. Some groups and buyers are getting downright reckless. Supply is still an issue but I don't know how some of these guys are making money off what they're buying.