Cox Automotive has unveiled results from its 2026 Tax Season Consumer Survey, showing that practical needs are the main force behind vehicle purchases this year. With rising car prices and fuel expenses, the findings highlight how affordability concerns are influencing buyer behavior and decision-making.
Key insights from the survey outline the mindset of tax season shoppers:
93% of consumers planning to use their tax refund for a vehicle had already intended to make a purchase before filing. 52% identify necessity as their primary reason for buying. While 80% express a preference for new vehicles, budget limitations are a major hurdle. Most expect to spend under $40,000—significantly below the current average new car price of $50,000—potentially leading to price-related surprises. Key insights from the survey outline the mindset of tax season shoppers:
Online platforms such as Autotrader, along with dealer inventories and partnerships with companies like Hertz Car Sales, are helping address affordability challenges by offering “near-new” vehicles—typically less than a year old. Hertz Car Sales, through its dealership inventory and Rent2Buy program sourced from its rental fleet, provides a wide range of model year 2025 vehicles in the used market. Supported by Kelley Blue Book pricing insights, these vehicles are often single-owner, well-maintained, and regularly serviced, making them an attractive alternative to brand-new purchases.
“Tax season traditionally brings serious buyers into the market, but their motivations have shifted this year,” said Erin Lomax, Vice President of Operations for Consumer Marketplace at Cox Automotive. “With tighter budgets, consumers are prioritizing reliability and value. Our findings highlight the growing importance of pricing transparency and affordability in today’s automotive landscape.”
Affordability remains a central concern. Although early IRS data indicates that average tax refunds have increased by 8.5% compared to last year, consumer expectations remain cautious. Higher vehicle prices, increasing fuel costs, and elevated interest rates continue to shape purchasing decisions, pushing buyers toward options that offer clear pricing, predictability, and reliable service histories.
Chris Berg, Executive Vice President of Global Fleet Management at Hertz, noted, “This tax season, buyers are focused on getting the most value for their money. Near-new vehicles—those under a year old with low mileage—are emerging as a smart choice in the current market.”
As financial pressures persist, Cox Automotive advises industry stakeholders to focus on transparent pricing, robust digital retail tools, and reliable late-model inventory that aligns with the needs of today’s value-driven buyers. Clear financing options and upfront cost visibility will be key differentiators for dealerships navigating a market shaped by cautious consumer spending.
The claim regarding the largest selection of 2025 models is based on the number of vehicles listed on competitor dealer websites at the time of publication.
“Tax season traditionally brings serious buyers into the market, but their motivations have shifted this year,” said Erin Lomax, Vice President of Operations for Consumer Marketplace at Cox Automotive. “With tighter budgets, consumers are prioritizing reliability and value. Our findings highlight the growing importance of pricing transparency and affordability in today’s automotive landscape.”
Affordability remains a central concern. Although early IRS data indicates that average tax refunds have increased by 8.5% compared to last year, consumer expectations remain cautious. Higher vehicle prices, increasing fuel costs, and elevated interest rates continue to shape purchasing decisions, pushing buyers toward options that offer clear pricing, predictability, and reliable service histories.
Chris Berg, Executive Vice President of Global Fleet Management at Hertz, noted, “This tax season, buyers are focused on getting the most value for their money. Near-new vehicles—those under a year old with low mileage—are emerging as a smart choice in the current market.”
As financial pressures persist, Cox Automotive advises industry stakeholders to focus on transparent pricing, robust digital retail tools, and reliable late-model inventory that aligns with the needs of today’s value-driven buyers. Clear financing options and upfront cost visibility will be key differentiators for dealerships navigating a market shaped by cautious consumer spending.
The claim regarding the largest selection of 2025 models is based on the number of vehicles listed on competitor dealer websites at the time of publication.