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Call this one tax gain.
At least for car dealers cartels in March hitting their highest monthly total since August 207.
The extra cash from tax refunds could be a reason for the bump and joining me now got Kelly.
-- look senior analyst Alec Gutierrez thanks for being with us -- so how is it that tax deadline is April 15 usually.
But car sales might have been helped by refund in March.
Well we typically see is that one the average tax refunds about 3000 dollars and with the average.
Price of the new vehicles sold in the US and around 30000 dollars that that accounts -- nice chunk of a down payment.
Now most folks that end up expecting a -- attend a file a little bit early they don't -- the deadline because they know they have money coming -- wanna get that in the pocket and had the dealership.
So -- that's why we see those expected refund file a little bit earlier take that money head of the dealership and take advantage of that low interest -- rates that are available today.
Okay and then for the laggards like me who file at the last minute you could actually see a bump up in car sales by may -- that.
That's exactly right down on average the the IRS expects that if what you -- -- Patrick are you should expect to get to refund within 21 days herself.
And typically what we see is that in terms of new vehicle sales the seasonal peaks tend to be in the month of march which is when those early filers get the refund.
And then again in May when those that -- the deadline indicating their refunds so we job -- march already we expect to see it again America.
Right now obviously were helped by a certain pent up demand because we stopped buying cars and I think we're at a sixteen and a half million cell rate annually in in the boom and then in the -- -- went down -- I think below even twelve and we just -- a chart on that.
But I'm just kind of wondering here did you see this tax refund boost happen even during the slump or did not work then and now it is working well.
You know -- -- even at the bottom of the market in 2009 we -- sold ten and a half million vehicles even in that period we still saw a bit of a boost in the month of march and again in the month of may.
I mean that's something you can almost have to -- -- -- every single year month the -- -- -- -- you get a C a bit of a boost.
Okay Alcan and would this be a little more beneficial to the sales of new cars vs -- because I think financing on new cars a lot easier to get back -- use my tax refund.
That down payment.
That's exactly right yeah we see a little bit more of a boost to new car sales.
And again with with low interest finance rate and longer terms available we know in the fourth quarter the average term was for 65 months or so what's the longest it's ever been.
It's really -- great environment to get out there by car -- those with.
You know that averaged 3000 dollars on -- tax refund they have plenty of options to choose from all right and car -- stocks figures showed yours.
Down -- -- -- everything's kind of down today thanks for being with us Alec Gutierrez.
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