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Many Americans Plan to Spend Their Tax Refunds on Cars

Save it … or spend it? That’s the question on the minds of millions of…

  • March 22, 2020

Save it … or spend it? That’s the question on the minds of millions of Americans as April 15 looms and tax refunds are distributed. A new survey by Enterprise Car Sales reveals that – for the 45% of us who are in a spending mood this year – buying a car tops the refund wish list.

The new survey shows that nearly three in five (58%) of those planning to spend their refunds intend to put them toward a car purchase.

What’s more, among those planning to bank their refunds, 19% said they’re saving to buy a new or used car down the road.

But whether they buy now or later, used car shoppers are clearly focused on getting a good deal.

The used car segment today is more than double the size of the new car market and is growing at a faster pace, according to McKinsey & Company.

It’s a trend driven largely by price, as multiple studies show used cars can cost significantly less than the comparable new car model.

Meanwhile, the used car market is made up of more and more “lightly used” vehicles — including former rental cars from Enterprise and others — that offer an optimal balance of quality, value and advanced technology at much more reasonable prices.

The Enterprise survey revealed that this balance is a major selling point for used car buyers.

Nearly all survey respondents (96%) agreed that buying a used car is a way to get a great car at a great value.

And more than half (54%) agreed that buying a used vehicle makes them feel more eco-friendly. An eye-opening 41% said they would never buy a new car, citing high prices and fast depreciation as their primary concerns.

In fact, the only thing respondents didn’t like about the used car experience was haggling over the price; nearly three-fourths (72%) indicated that they would prefer to shop for a used car knowing prices are final so they wouldn’t have to negotiate.

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AERO is a trusted financial partner of Enterprise Car Sales. Learn more here.