As April 15 looms, 58% of those planning to spend their tax refunds intend to put them toward a car purchase.
That is according to a new survey from Enterprise Car Sales, which says it expects that trend to bring continued growth in the used car segment “as drivers look to maximize value and quality for their investment.”
In addition, 19% of those planning to put their refunds into savings said they were saving to buy a new or used car in the future.
But Enterprise Car Sales, a service of the Enterprise Rent-A-Car brand that sells late-model used vehicles, highlighted used vehicles in addressing the survey. The company said that in anticipation of tax season, it was increasing its used-vehicle stock by 30%.
The company also said it has launched a tax-season campaign “to help consumers get more mileage out of their tax refund car-shopping.”
The campaign highlights used cars with payments of less than $300 per month, and company said its website includes additional campaign details, consumer tips and insights for those in the market for a used car.
The company noted that whether used-car buyers buy now or later, they are focused on getting a good deal. Enterprise sourced McKinsey & Company in stating that the used car segment today is more than double the size of the new car market and is growing at a faster pace.
Enterprise Car Sales says that trend is driven mainly by price. Various studies show used cars can cost much less than the comparable new car model, according to the company, which conducted the survey Jan. 15-26 among 1,000 U.S. adults aged 18 to 60 who plan on purchasing a used car or truck within the next two years.
Also, the company said the used-car market is made up of more and more “lightly used” vehicles and said that includes former rental cars from Enterprise and others. At much more reasonable prices, those lightly used vehicles offer a balance of quality, value and advanced technology, Enterprise Car Sales said.
That balance is a major selling point for used car buyers, according to the Enterprise survey.
Ninety-six percent of survey respondents said buying a used car is a way to get a great car at a great value.
In addition, 54% said buying a used vehicle makes them feel more eco-friendly.
Forty-one percent said they would never buy a new car, which Enterprise said was “eye-opening.” High prices and fast depreciation were the primary concerns of a new car purchase.
Respondents actually mentioned only one consideration that they did not like about the used car experience: Haggling over the price.
Seventy-two percent said they would prefer to shop for a used car knowing that the prices were final. That way, they wouldn’t have to negotiate.
“Nobody knows more about buying and selling cars than Enterprise, and we put that knowledge to work through Enterprise Car Sales to provide a great experience for anyone looking to invest in a quality used car,” said Enterprise Car Sales vice president Mike Bystrom.
He continued, “Our thousands of 1- to 3-year-old, low-mileage vehicles include more than 250 makes and models of cars, SUVS, trucks and vans. That makes us an ideal choice for used-car buyers.”