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CarMax Study Finds One in Six Will Put Tax Return toward Car

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According to a study from CarMax, about one in six (17 percent) of Americans expecting a tax return from the IRS this year will put that money toward buying a car, while one in four (26 percent) aim to put the money into savings. Yet another one in four (25 percent) will pay off debt. And a pessimistic three in 10 (29 percent) don’t expect any cash from Uncle Sam. I myself spent the majority of my refund on a new 39” LED TV and an entertainment center for it so that I will be able to binge watch the second season of Orange is the New Black in high-def, although a Dodge Dart is always on my radar.

Tax Return toward Car

“Historically, tax refund season has been a very busy time for CarMax,” explained Cliff Wood, the executive vice president of stores at CarMax. “Buying a car any time of the year is a big decision, and we work to make the process fun and hassle-free so customers can focus on what matters most: finding the perfect car for them.”

The survey from CarMax contained some pretty interesting results, car-related and not. Here are a few of the interesting stats that the used car retailer pulled:

  • 26 percent of parents, 29 percent of those under the age of 35, and 22 percent of residents of the South plan to use their tax refund for a car.
  • Midwesterners are more likely to file early (89 percent), probably because there is absolutely nothing else to do in the Midwest but fill out tax forms. As an Ohioan, I know these things.
  • We men are more likely to ask for an extension; 7 percent of men compared to 4 percent of women seek one out.

Tax Return toward Car

Did you decide to put your tax return toward a car purchase? What set of wheels did you go with?

  • Timothy MooreManaging Editor

    Timothy Moore hails from Dayton, Ohio, and tries to bring that Midwestern flavor to his writing. (But as it turns out, no one really likes the Midwestern flavor.) He has been covering the auto industry for years, with several national auto shows under his belt, but he’s been writing about lots of other things (like dragons and Mickey Mouse and cows drowning in milk) since he was just a tot. Outside of the land of cars, Timothy enjoys watching The Office and consuming excessive amounts of peanut butter and beer, and is on the board of an up-and-coming Dayton theatre company called The Playground. And when he’s not on stage (or three jars into a peanut butter binge), Timothy spends time with his mischievous dog, Greyson. See more articles by Timothy.