Tax Refunds Soaked up by Car-Related Expenses: Study

Tax Refunds Soaked up by Car-Related Expenses: Study

It’s tax time again, and the results of a survey released today find a third of vehicles owners who receive refunds will spend some of that money on vehicle-related expenses.

The survey polled 5,000 people between ages 18 and 60 and was conducted last month on behalf of eBay. Roughly 68 percent of the people surveyed either received a refund or expect one this year. The average refund amount is $2,900, and on average $1,000 of that will be spent on something automotive-related.

Of the survey respondents who will spend some of their tax refund on something related to a car, 25 percent plan to buy a car — split evenly between new and used purchases.

Thirty-one percent say the money will be used to add a second vehicle or to buy a vehicle for a child.

Of those who specified spending on car-related goods and services, 57 percent said they would buy maintenance items while 36 percent said the money would go to tires.

[Source: Automotive News]