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Tax refunds going toward cars

By Tara Baukus Mello · Bankrate.com
Saturday, April 20, 2013
Posted: 6 am ET

Consumers are putting their tax refunds toward their cars, according to a survey commissioned by eBay Motors. More than one-third of those surveyed who are expecting a tax refund this year had allocated at least a portion of it to auto expenses and 42 percent of those planned to spend "significantly more" on their cars than last year.

The average amount that consumers said they planned on spending on their cars was more than $1,000 -- about 35 percent of their total refund. Twenty-five percent of the group said they planned on using the money to buy a new car.

The remainder of those surveyed said they would use the money on maintaining their autos (57 percent), car repairs (51 percent), buying new tires (36 percent), cleaning or detailing their cars (18 percent) or paying off an existing car loan (13 percent). Percentages equal more than 100 percent because respondents could select more than one use for their tax refund.

EBay Motors noted that it regularly sees a spike in activity this time of year, adding that more people have funds available to buy car parts or replace their cars with a newer model.

How about you? Will you be using your tax refund to buy a new car or repair your old car?

Tara Baukus Mello writes the cars blog as well as the weekly Driving for Dollars column, providing both practical financial advice for consumers as well as insight into the latest developments in the automotive world. Follow her on Facebook here or on Twitter @SheDrives.

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