A majority of U.S. consumers using tax refunds to purchase a vehicle this year are doing so out of necessity, according to Cox Automotive.
The company’s 2026 Tax Season Consumer Survey found 52 per cent of respondents cited necessity as their primary motivation, reflecting ongoing affordability pressures tied to higher vehicle prices, fuel costs and interest rates. The survey also found 93 per cent of shoppers planning to use a refund had already intended to buy a vehicle before filing taxes, suggesting refunds are supporting existing demand rather than creating new buyers.
“Tax season has always brought high-intent shoppers into the market, but this year their motivations look very different,” said Erin Lomax, Vice President, Operations Consumer Marketplace at Cox Automotive, in a statement. “Consumers are navigating real financial constraints, and they’re looking for dependable, high value vehicles that fit real budgets. Our latest survey reinforces the importance of transparency and affordability for automotive retail.”
Although 80 per cent of respondents said they prefer to buy new vehicles, many expect to spend less than $40,000 — well below the roughly $50,000 average new-vehicle price and thus highlighting a gap between expectations and market realities.
To manage costs, the report points to growing interest in “near-new” vehicles, typically a year old or less, as an alternative to new models. Cox Automotive said affordability pressures remain top of mind for consumers, even as average tax refunds rise, underscoring the importance of pricing transparency and predictable ownership costs.
