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Story perspectives

Tax Refund Surge Boosts Spring Car Demand

2/20/2026

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Story summary
  • The U.S. automotive industry may see demand rise this spring as higher tax refunds push buyers priced out of new vehicles.
  • The average Internal Revenue Service (IRS) tax refund rose 10.9% this season to $2,290, up from $2,065 last year.
  • The rise is attributed to Trump administration tax changes, including overtime and tips removal and new deductions for vehicle loans.