Tax season is bringing high-intent car buyers to market, but a widening gap between what shoppers want and what they can afford is reshaping purchase decisions in 2026. New data from Cox Automotive shows that more than half of refund-driven buyers are purchasing out of necessity, and most expect to spend well below today’s average new car price of nearly $50,000. Hertz Car Sales is meeting that moment with the largest selection of near-new, model year 2025 vehicles in the U.S. used retail market – priced on average at more than half the cost of buying new.
Full Cox Automotive Press Release, here:
Necessity Is Driving Tax-Season Car Buying as Shoppers Seek Affordable Vehicles, According to Cox Automotive Survey
Hertz Car Sales, an Autotrader Buy Online client, is closing the affordability gap with the U.S.’ largest selection of ‘near-new’ vehicles at half the cost of buying new*
ATLANTA, April 14, 2026 – Cox Automotive today released findings from its 2026 Tax Season Consumer Survey, revealing that necessity is driving the majority of this year’s vehicle buying season. Against a backdrop of higher vehicle prices and fuel costs, the survey findings help contextualize a market where affordability pressures are shaping how buyers approach vehicle decisions.
Cox’s survey findings reinforce the profile of this year’s tax season shopper:
- Ninety-three percent of shoppers using their refund toward a vehicle had already planned to buy before filing taxes.
- More than half (52%) cite necessity as the primary motivation.
- Although 80% prefer to buy new vehicles, affordability constraints remain significant. Shoppers said they expect to spend less than $40,000 – well below the $50,000 average new car price – setting up potential sticker shock as market realities set in.
Available to Buy Online on Autotrader, inventory from dealers, as well as trusted partners like Hertz Car Sales are helping bridge the affordability gap consumers face by expanding access to ‘near-new’ vehicles: an emerging category of cars that are typically a year old or less. Through its on-lot inventory and Rent2Buy® vehicles sourced from its expansive rental fleet, Hertz Car Sales offers the largest selection of ‘near new’ vehicles – model year 2025 vehicles – in the used retail market. With pricing informed by Kelley Blue Book insights, Hertz Car Sales offers single-owner, well-maintained and regularly serviced vehicles that provide a compelling alternative to buying new.
“Tax season has always brought high-intent shoppers into the market, but this year their motivations look very different,” said Erin Lomax, Vice President, Operations Consumer Marketplace at Cox Automotive. “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.”
Affordability pressures remain top of mind. Early IRS filing season data shows the average tax refund is up 8.5% year-over-year. Yet consumers surveyed still report modest expectations, intensifying affordability concerns for in-market shoppers. Elevated new-vehicle prices, rising gas costs and interest rates continue to influence decision making, leading buyers to seek transparent pricing, predictability and trusted service histories.
“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,” said Chris Berg, Executive Vice President of Global Fleet Management at Hertz. “Near-new inventory, vehicles a year old or less with low mileage, is proving to be the smart play in today’s market.”
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.
*Largest selection of 2025 models claim is based on the number of vehicles listed for sale on competitor dealer websites as of the date of release.
About Cox Automotive
Cox Automotive is the world’s largest automotive services and technology provider. Cox Automotive powers industry-leading solutions for car shoppers, auto manufacturers, dealers, lenders and fleets through proprietary technology and insights derived from billions of annual online interactions. The company has 29,000+ employees on five continents and a portfolio of industry-leading brands that include Autotrader®, Kelley Blue Book®, Manheim®, vAuto®, Dealertrack®, NextGear Capital™, CentralDispatch® and Cox Fleet®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately owned, Atlanta-based company with $23 billion in annual revenue. Cox Automotive has been included on Glassdoor’s Best Companies in Tech & AI 2026 and Best Place to Work in 2026 lists. Visit coxautoinc.com or connect via @CoxAutomotive on X, CoxAutoInc on Facebook or Cox-Automotive-Inc on LinkedIn
