Tax Season Drives Necessity-Based Car Buying as Shoppers Seek Affordable Vehicles

Cox Automotive survey finds buyers prioritizing value and transparency amid high prices and interest rates

Apr. 14, 2026 at 10:21am

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Sweeping, abstract streaks of vibrant color and motion, conceptually representing the urgency and necessity behind this year's tax season car buying.As affordability pressures mount, tax season car buyers are prioritizing value and transparency over their ideal vehicle preferences.Atlanta Today

A new survey from Cox Automotive reveals that the majority of this year's tax season car buyers are motivated by necessity rather than preference, as they navigate higher vehicle prices, fuel costs, and interest rates. With the average new car price topping $50,000, many shoppers are seeking more affordable 'near-new' options from dealers like Hertz Car Sales to get the most vehicle for their money.

Why it matters

The survey findings highlight the affordability pressures facing today's car buyers, who are increasingly prioritizing value and transparency over their ideal vehicle preferences. As the industry continues to grapple with supply chain challenges and economic uncertainty, understanding the necessity-driven mindset of tax season shoppers will be crucial for dealers and automakers to meet customer needs.

The details

According to the Cox Automotive survey, 93% of shoppers using their tax refund toward a vehicle had already planned to buy before filing taxes, and over half (52%) cite necessity as the primary motivation. While 80% of buyers prefer new vehicles, the average expected spend of less than $40,000 is well below the current $50,000 average new car price. To bridge this affordability gap, dealers like Hertz Car Sales are offering a growing selection of 'near-new' vehicles - typically a year old or less - that provide a compelling alternative to buying brand-new.

  • The Cox Automotive 2026 Tax Season Consumer Survey was conducted in early 2026.
  • Early IRS filing-season data shows the average tax refund is up 8.5% year-over-year.

The players

Cox Automotive

The world's largest automotive services and technology provider, powering industry-leading solutions for car shoppers, auto manufacturers, dealers, lenders and fleets.

Hertz Car Sales

An Autotrader Buy Online client and the largest provider of 'near-new' vehicles in the used retail market, offering single-owner, well-maintained cars sourced from its rental fleet.

Erin Lomax

Vice President, Operations Consumer Marketplace at Cox Automotive.

Chris Berg

Executive Vice President of Global Fleet Management at Hertz.

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What they’re saying

“Tax season has always brought high-intent shoppers into the market, but this year their motivations look very different. 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.”

— Erin Lomax, Vice President, Operations Consumer Marketplace

“What we're seeing at Hertz Car Sales this tax season is a buyer who knows exactly what they want: maximum vehicle for their money. Near-new inventory, vehicles a year old or less with low mileage, is proving to be the smart play in today's market.”

— Chris Berg, Executive Vice President of Global Fleet Management

What’s next

As affordability pressures continue, Cox Automotive encourages its industry partners to emphasize transparent pricing, digital retailing tools, and dependable late-model inventory aligned with today's necessity-driven buyer. Digital retailing and financing tools that offer upfront clarity will be essential differentiators for dealerships serving shoppers who expect higher interest rates this season.

The takeaway

This year's tax season car buying is being driven by necessity rather than preference, as shoppers prioritize affordability and value over their ideal vehicle choices. Dealers who can provide transparent pricing, digital tools, and a strong selection of 'near-new' vehicles will be best positioned to meet the needs of this cost-conscious buyer segment.