Smoke noted a caveat related to the survey’s timing, about a month before Russia invaded Ukraine. The war could affect the automotive supply chain, the cost of goods and consumer sentiment, he said.
“We have to be careful about some of the perspectives … on the economy,” Smoke said.
Still, despite the uncertainty, many positive signs persist, he noted, adding that last week marked the best weekly used-vehicle sales performance to date this year.
And the U.S. is releasing billions of dollars worth of tax refunds into the economy, Smoke noted.
“A portion of that money will always be spent on vehicles,” he said.
But dealers are seeing a delay in when that tax refund benefit hits the used-vehicle market compared with past years, Smoke said.
“We’ve seen a slow start,” he said. Fewer than half of the nation’s refunds have been issued, according to Smoke.
Dealers did indicate in the survey growing concern about rising expenses, particularly around staffing. Several said they’d had to raise pay to hire and retain employees.
“We are being competitive in regards to comp and increasing comp so as to attract talent,” a Lexus dealer in the South told Cox.
