Will the upcoming tax season make or break used car sales?

Welcome to this week’s episode of Used Cars Weekly, the original CBT News show dedicated to bringing car dealers best practices and tips for the used car department, in-depth dealer interviews, hands-on dealership strategies, as well as vendor analysis. Today, host Jasen Rice, founder of Lotpop, discusses what the upcoming tax season likely has in store for the used car market in 2022.

Google Trends reveals that used cars, as a search term, is at its lowest level in five years. Combined with an increasingly low two-weeks sales volume average, even active car dealers are struggling with volume right now. Rice adds that car dealers need to pay attention to the rise in auto defaults as well.

COVID stimulus packages are also starting to fade away, and the IRS is dealing with a mounting backlog of paperwork. Average used vehicles prices also hit a new all-time high of $29,000 and while vehicle supply is starting to come back, dealers will still have to source more cars from consumers.

Related: It’s a used-car desert—how to get creative and boost inventory

Decide for yourselves whether or not you think this year will have a strong tax season. For used car operations, Rice says keep it lean and clean. Be careful of overstocking and monitor inflation. Look at your last two-week sales cycle and make your determination based on trends.

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Jasen Rice
Jasen Rice
Jasen Rice began his career on the retail side in 1997 selling cars online, then running award-winning internet departments along with being a GSM of an independent used car dealer. His next 8+ years were spent on the vendor side as a Performance Manager for vAuto allowing him to visit thousands of dealers across the nation and train them on used car inventory management. He finished his time with vAuto as a Director of Performance Management in the East and started his own company, Lotpop, in 2013. Jasen was featured on the cover of Digital Dealer in Oct. 2005 and awarded the 2006 AAISP (Association of Automotive Internet Sales Professionals) Professional Excellence Award. He's been a featured blogger for AutoSuccess Magazine and continues to speak at conferences every year. He is happily married to Kelly since 1999, is the father of five children and loves to go camping and cycling.

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