Tax-Season Car Buyers Shift to 'Near-New' Vehicles Amid Affordability Crunch
Event summary
- Cox Automotive's 2026 Tax Season Consumer Survey reveals 52% of buyers cite necessity as primary motivation, with 93% planning purchases before filing taxes.
- 80% of shoppers prefer new vehicles but face affordability constraints, targeting budgets under $40,000 against an average new car price of $50,000.
- Hertz Car Sales offers the largest selection of 'near-new' 2025 model vehicles, priced with Kelley Blue Book insights, as an alternative to new purchases.
- Average tax refunds are up 8.5% year-over-year, but consumers report modest expectations, intensifying affordability concerns.
The big picture
Cox Automotive's survey highlights a strategic shift in the automotive retail market, where affordability pressures are pushing buyers toward 'near-new' vehicles. This trend reflects broader industry dynamics, including elevated new-vehicle prices, rising fuel costs, and higher interest rates. The emphasis on transparent pricing and digital retailing tools underscores the need for dealerships to adapt to a market where necessity, rather than preference, drives purchasing decisions.
What we're watching
- Affordability Gap
- How the disconnect between consumer budgets and new vehicle prices will impact dealership strategies.
- Digital Retailing
- Whether upfront pricing and financing tools can differentiate dealerships in a necessity-driven market.
- Used Vehicle Demand
- The pace at which 'near-new' vehicle inventory will be absorbed as buyers seek cost-effective alternatives.
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