Tax season can just as easily become “down payment season” if your dealership employs the correct digital strategy. As consumers start receiving their tax refunds, show your financing and subprime-geared offers to the right audiences to increase dealership sales this tax season.
Think With Google noticed a trend in dealership foot traffic, increasing substantially from the slow months after the holiday season into
summer. The big spike in the chart below peaks right around—yep, you guessed it—tax season.
Some sources claim dealers see up to 50% of annual business during tax season and sell more cars during this time of year than any other. While those numbers are bound to differ from dealer to dealer, we do know that tax refunds have more than doubled in the last decade. And this makes for a huge opportunity for industries that benefit from large initial investments.
Though Most Save Tax Refunds, Some Consumers Still Plan On Investing Their Cash In A Big Purchase
According to the National Retail Federation, more and more Americans are receiving tax refunds each year. As of 2016, two-thirds of Americans expected a tax refund.
And while most consumers plan to save instead of spend their extra cash, an average 10.5% of adults plan to spend their return on major purchases, like a new car or furniture:
As refunds are drawing closer, does your dealership have a strategy to increase dealership sales this tax season?
Tip #1: Target Car Shoppers By Credit Score, Income, and Age
According to the NRF survey data, those who are looking to “spend their tax refund on a major purchase” (like a car) belong to income ranges <$50K and are between the ages of 18-34 YO.