According to a new survey and infographic released by CarMax, Inc. (NYSE: KMX), the nation’s largest retailer of used cars, one in four American adults say they plan to save (26 percent) or pay back debt (25 percent) with their tax refund this year. Among those expecting a refund, one in six (17 percent) are likely to use the money to shop for a car. The survey explores the tax filing habits of Americans and how they plan to spend their refund. Almost three in 10 people (29 percent) are not expecting a refund this year.
Young Adults Most Likely to Spend Refund on Car
The online survey, conducted by Ipsos Public Affairs on behalf of CarMax, reveals that among those who are expecting a refund, those under the age of 35 (29 percent), parents (26 percent) and residents of the South (22 percent) are particularly likely to put their tax refund toward the purchase of a car this year. When it comes to putting their reimbursement toward a large purchase like a home or car, parents are twice as likely (23 percent) to say they have done so than are adults without children in their household (11 percent).
“Historically, tax refund season has been a very busy time for CarMax,” says Cliff Wood, 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.”Midwest is Best at Filing Before Deadline Midwesterners are most likely to say that they file their tax return in advance of the deadline (89 percent), followed by people living in the West (83 percent) and the Northeast (81 percent). In the South, 14 percent say that they file on April 15 or ask for an extension. Though many have plans for how to use their refund, few spend it before they actually have it in hand. Less than one in 10 (7 percent) say they have ever spent their tax refund before receiving it, compared to eight in 10 (84 percent) who have not.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts