A third of the consumers who received or are expecting tax refunds this year plan to sink some of that cash into vehicle-related purchases such as a new- or used-vehicle or repairs, an eBay Inc. study found.
The online survey of 5,000 people aged 18 to 60, conducted on behalf of eBay in March, was released today. Clayton Stanfield, senior manager of dealer training at eBay, says the survey is more proof for dealers that many consumers have money right now and are ready to spend it on vehicles.
"Yes, people are buying cars, but a majority are also looking at some kind of repair," Stansfield adds.
Roughly 68 percent of the taxpayers surveyed have either received a tax refund check or expect to receive one this year, according to eBay. The average overall refund amount is $2,900. The average refund amount going to auto related purchases is more than $1,000.
Among consumers who have earmarked a portion of a tax refund to their vehicles, 25 percent plan to purchase a vehicle, evenly split between new and used, according to the survey.
Thirty-one percent say they will use their refund windfall to add a second vehicle to their household or buy a vehicle for a child.
Of those who said they will use some of their refund for auto-related goods and services, 57 percent said they would purchase maintenance items and 36 percent said they would buy tires. And 13 percent said they would pay off an existing car loan.
The study also found that 35 percent of respondents using refunds for auto related purchases will likely make the online purchases with a computer and 16 percent are likely to make the purchase with a mobile device.