How Would You Use Your Tax Refund?
How Would You Use Your Tax Refund? | CarMaxMarch 2016

Wondering how to spend your next tax refund? If you’re expecting to get a refund, you’ve probably got some ideas. 

We asked consumers how they planned to spend their refunds. Just over two-thirds of respondents were expecting a refund; of those, 26 percent said they planned to save them. One-quarter of respondents planned to pay back debt.

Among those expecting a refund, 17 percent considered themselves likely to use the money to shop for a car.

If you consider yourself among this last group, here are some key tips on how to shop for a used car like the Honda Civic or Nissan Altima during tax season:

  1. Do your research: Start your search online by exploring pictures, reviews, and financing terms before you test drive.
  2. Narrow your options: Select a few vehicles you want to test drive in advance and visit a store where you can try out a variety of makes and models.
  3. Go somewhere you trust: Choose a retailer you trust to provide a transparent and enjoyable car buying experience focused on your needs.
  4. Ask questions: Ask your sales consultant as many questions as you need so that you fully understand the terms of your agreement before you sign any documents. 

Young adults were most likely to spend their refunds on a car

The online survey, conducted by Ipsos Public Affairs on behalf of CarMax, revealed that among those who are expecting a refund, those under the age of 35 (29 percent), parents (26 percent) and residents of the South (22 percent) were particularly likely to put their tax refund toward the purchase of a car. When it comes to putting their reimbursement toward a large purchase like a home or car, parents were twice as likely (23 percent) to say they have done so than are adults without children in their household (11 percent).

If you’re planning to be in the market for a used car like a Hyundai Sonata, do your homework by searching makes, models, and prices everywhere you can, including carmax.com. Happy hunting! 

For this survey, CarMax partnered with Ipsos, a leading global survey-based market research company. These are some of the findings of Ipsos polls conducted March 3-4, 2014. For the survey, a national sample of 1,010 adults aged 18 and older from Ipsos’ U.S. online panel was interviewed online.


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