Near Future: January 2024 & Tax Season 2025 Tax brackets are increasing by 5.4%, promising savings across income brackets and enhancing consumer spending power. The IRS's hike in standard deductions anticipates boosting consumer buying power, which is pivotal for the upcoming tax season. Meanwhile, the used car market maintains stable pricing, offering a predictable landscape for immediate strategies.
Mid Future: Throughout 2024, Anticipate potential Federal rate reductions in Q2 and Q4 to counter a mild recession, stimulating the economy and consumer spending. New car sales are expected to remain steady, thanks to a healthy supply and OEM incentives. However, affordability issues may restrain growth, necessitating strategic foresight and planning.
Long Term: Beyond 2024 Prepare for a gradual increase in vehicle acquisition costs as market demand strengthens. A robust tax season is expected to enhance used car sales. Adapting to market shifts now by strategically acquiring inventory could result in significant gains. Conversely, delaying purchases may lead to overpaying later, impacting long-term profitability and market positioning. Stay proactive and informed to navigate and capitalize on these evolving trends.
Shoutout to The Automotive Advisor Team for gathering great data!