Skip to comments.Tax Refunds, Easy Credit Boost Used Car Prices
Posted on 03/10/2014 8:18:08 AM PDT by nascarnation
A combination of income tax refunds issued in January and February with accessible financing have boosted used-car prices overall in the first two months of 2014.
Automotive News reports prices rose 1.1 percent year to date, and 0.8 percent over the past month, according to the Manheim Used Vehicle Value Index. Meanwhile, the IRS processed 40.4 million returns in the first two months of the year, refunding $125.8 billion to taxpayers at an average of $3,112, which helped in propping up wholesale used vehicle prices.
Easy credit with attractive terms also aided used-vehicle pricing, making the market more profitable than the underlying unit sale numbers would suggest according to Manheim.
Overall sales fell 1 percent from the previous year, and 12 percent from January to 2.05 million units, with used compact cars falling the hardest at 3 percent from last year due to heavy supply and competition from newer vehicles. Used truck sales rose 8 percent in the same period due to high demand and low inventories.
Nice try, but ‘refunder’ likely aren’t they type of people buying those cars. Call it what it is. EITC, Earned Income TAX CREDIT - imagine the gall of it -earned income, it is money taken from real workers and given to people who can’t make in the world by themselves. Ill-educated, ill-prepared, and content in sponging off others.
They are the ones that buy most of those cars, at least the ones that can pay cash for them, because they get those $5000 checks every year.
Amazing how those “fast tax” offices sprout in every vacant storefront in the ‘hood every January. It’s becoming a big deal, over 27 million in 2012, with the regime attempting to issue new rules to add 6 million additional.
The EITC is a “reward” for people who actually do try to do some work. Because of the perverse “trap” nature of gov’t benefits, getting a job can lead to a decrease in “income” without the ETIC.
They get a tax credit for earning part of their income.
It's just another damned unearned benefit. The only difference being you have to have worked at least 'some' for someone else. In theory, one could earn as little as $600 in one quarter (the old requirement for filing and paying taxes on) and get upwards of near $6000 back. There's not one doggone thing "earned" about it. It is nothing but stealing from producers and redistributing it to unproductive people.
I think you misunderstand the name. It is not the tax credit that is earned. It is the income that is earned.
If you earn some income, then you get a tax credit.
It’s perverse, but so is welfare. It is an incentive to get people to work. Without it, those who wanted to work would be penalized by loss of other benefits.
Yes, it is a benefit. No argument there.
Thanks for the explanation. Another welfare term that irks me to no end is “entitlements.”