Tax refunds lead to increased auto-related spending

Apr 16, 2013

Restylers may want to adjust their marketing plans this spring. A study commissioned by eBay Motors revealed that American drivers are planning to spend more of their tax refunds on auto-related purchases this year than in 2012. One-third of consumers surveyed by eBay who are expecting to receive a tax refund this year plan to spend at least 35 percent of their refund on vehicle-related purchases.

The study conducted in March involved an online survey of 5,000 people aged 18-60. Twenty-five percent of drivers expecting to spend a portion of their refund on auto-related purchases said they plan to purchase a new or used vehicle. Thirty-one percent said they will use the refund bonus to add a second vehicle to their household or buy a vehicle for a child.

The average overall refund amount this year is $2,900, and the average refund amount going to auto-related purchases is more than $1,000, according to eBay.

Other respondents who will use some of their refund for auto-related goods and services reported they will spend money on vehicle maintenance items (57 percent), repairs (51 percent), new tires (36 percent), cleaning or detailing (18 percent), and paying off an existing car loan (13 percent).

In addition, the eBay Motors study found that 35 percent of respondents using refunds for auto-related purchase likely will make their purchases online, and 16 percent are likely to make the purchase with a mobile device.