A new survey by Enterprise Car Sales reveals that nearly three in five (58%) of those planning to spend their 2019 tax refunds intend to put them toward a car purchase. Among those planning to bank their refunds, 19% said they’re saving to buy a new or used car down the road.
The used car segment today is more than double the size of the new car market and is growing at a faster pace, according to McKinsey & Company. It’s a trend driven largely by price, as multiple studies show used cars can cost significantly less than the comparable new car model. Meanwhile, the used car market is made up of more and more “lightly used” vehicles — including former rental cars from Enterprise and others — that offer a balance of quality, value, and advanced technology at a reasonable prices.
The Enterprise survey revealed that this balance is a major selling point for used car buyers. Nearly all survey respondents (96%) agreed that buying a used car is a way to get a great car at a great value. And more than half (54%) agreed that buying a used vehicle makes them feel more eco-friendly. Forty-one percent said they would never buy a new car, citing high prices and fast depreciation as their primary concerns.
In fact, the only thing respondents didn’t like about the used car experience was haggling over the price; nearly three-fourths (72%) indicated that they would prefer to shop for a used car knowing prices are final so they wouldn’t have to negotiate.