According to a new survey released by CarMax, Inc., the nation’s largest retailer of used cars, one in four American adults say they plan to save (26 percent) or pay back debt (25 percent) with their tax refund this year. Among those expecting a refund, one in six (17 percent) are likely to use the money to shop for a car. The survey explores the tax filing habits of Americans and how they plan to spend their refund. Almost three in 10 people (29 percent) are not expecting a refund this year.
The online survey, conducted by Ipsos Public Affairs on behalf of CarMax, reveals 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) are particularly likely to put their tax refund toward the purchase of a car this year. When it comes to putting their reimbursement toward a large purchase like a home or car, parents are twice as likely (23 percent) to say they have done so than are adults without children in their household (11 percent).
“Historically, tax refund season has been a very busy time for CarMax,” says Cliff Wood, executive vice president of stores at CarMax. “Buying a car any time of the year is a big decision, and we work to make the process fun and hassle-free so customers can focus on what matters most: finding the perfect car for them.”
Plans for spending this year’s tax refund are similar to how respondents say they have used their refund in the past. Roughly four in 10 have paid debt (44 percent), saved it (40 percent), or used it on everyday expenses, such as groceries, bills, or gas (38 percent). One in five say they have used it for travel (23 percent) or home improvements (21 percent), while one in seven (14 percent) have spent their tax refund on something larger, such as a car or a house.
Read the full report from CarMax here.