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Early season data also showed millions of refunds processed within days of the IRS opening, and agencies continue to report most refunds arrive in less than 21 days when filed electronically with direct deposit. For dealers, this means a concentrated window to capture demand, shorten cycle times, and grow market share.
Below are seven practical strategies that help independent dealerships sell more vehicles during tax season, followed by how Agora Data can support your finance execution and throughput during peak traffic.
1. Build an inventory mix tailored to refund budgets
Shoppers often arrive with a defined down payment from their refund and a target monthly amount. Use your historical sales and current market data to stock inventory in price bands that align with typical refund ranges. In recent seasons, industry data highlights average refunds above three thousand dollars with a high share of refunds resulting in payouts, reinforcing demand for reliable, affordable vehicles that fit refund-driven budgets.
Action Steps:
- Increase availability of inventory at key price points.
- Feature vehicles with strong value signals like fuel economy, warranty coverage, and known durability.
- Organize inventory pages by monthly payment brackets to reduce friction for shoppers moving from online research to desking.
2. Launch refund-aware marketing that drives qualified traffic
Customers actively search for vehicles as refunds hit accounts. Use geotargeted ads and paid social to reach buyers within a drivetime radius, promoting down payment options tied to typical refund sizes and limited time incentives. Media and consumer finance outlets consistently note that buyers use refunds for down payments, which makes timing and messaging pivotal.
Action Steps:
- Replace generic copy with clear value propositions like “Use your refund as your down payment today.”
- Run countdown creatives aligned to IRS schedules and mid-February timing for certain credits to create urgency.
- Include strong CTAs that deep link to Vehicle Detail Pages (VDPs) and prequalification tools.
3. Streamline approvals and documentation for peak throughput
Speed wins in tax season. Automated underwriting workflows and AI enabled dealer portals are helping finance sources verify income, clear stipulations, and detect fraud in real time, shortening funding timelines and reducing back and forth. Early adopters report faster income calculation, instant document checks, and fewer bottlenecks at funding.
Action Steps:
- Integrate portal automation for verification, stip clearance, and e-contracting so deals move from approval to funding without delays.
- Consider soft pull prequalification online to start more deals and preserve bureau scores for serious buyers.
- Create a fast lane in F&I for refund ready customers with complete documentation.
4. Elevate the digital car retail experience
Most shoppers begin online. Keep website pages current, mobile friendly, and friction free. Platforms and consumer guides emphasize that refund backed buyers expect speed and transparency. Add payment calculators, prequalification widgets, and outthedoor pricing so buyers can act faster.
Action Steps:
- Display real monthly estimates with taxes and fees to prevent surprises.
- Use remarketing to bring back active visitors during the 21-day refund window.
- Publish trade-in valuation tools and instant appraisal forms to accelerate desked deals.
5. Train your team for high volume, high velocity execution
Refine showroom choreography. Align sales, desk, and F&I around a single source of truth and a tighter baton pass. Industry trends highlight how timing shrinks during tax season and competition intensifies, making cycle time a decisive advantage.
Action Steps:
- Run pre‑season huddles on documentation checklists, portal workflows, and exception handling.
- Set hourly throughput targets on peak days and monitor bottlenecks in real time.
- Keep managers accessible to approve structured deals quickly.
6. Promote trade-ins to expand deal options and protect margins
Refund season shoppers want to stretch budgets. Trade-in promotions lower financed amounts and improve payment affordability without deep discounting. Consumer outlets show customers weighing the full cost of ownership and payment comfort. Position trade-ins as a smart lever to hit monthly targets while moving units.
Action Steps:
- Advertise appraisals and tax season trade bonuses.
- Use digital appraisal tools to prequalify offers before the customer arrives.
- Pair trade-ins with service plans that protect vehicles and improve retention.
7. Expand your customer base to subprime buyers responsibly
Tax season increases activity among shoppers who sit outside prime credit tiers. Analytics driven approval models and flexible stipulations can help dealers responsibly expand approvals without sacrificing portfolio performance. Industry coverage shows AI decisioning reducing bias, improving accuracy, and delivering faster results, while reporting from dealer and lender sources confirms that access tends to open during tax season as competition rises.
Action Steps:
- Work with partners that use alternative data and machine learning to assess risk beyond one score.
- Offer payment structures aligned to refund plus income realities, avoiding terms that outlast vehicle usefulness.
- Track earlystage performance of sales and adjust guidelines quickly based on live analytics.
Data-driven context for planning
The IRS processed more than 100 million returns by April 2025 and issued over 67 million refunds, with the average amount around $3,116 at that time. By the end of the season, average refunds settled near $3,052, and agencies reiterated that most direct deposits arrive inside the 21-day window once filed. For dealers, those figures translate to a sizable pool of ready down payments flowing into late Q1 and early Q2 activity, a pattern echoed in industry coverage that ties refunds directly to a sales spike each spring.
How Agora Data can help your car dealership win tax season
Agora Data equips independent dealers with funding access, fast decisions, and analytics to help them capture this refund-driven demand. Dealers can assign retail installment contracts and retain the lifetime profit through Additional Loan Profit program, while Agora Guaranteed Funds provide recurring payouts that scale with volume. Embedded integrations with loan origination systems streamline workflows so F&I teams stay in the DMS and move deals from approval to funding faster.
What this means for your car dealership
- Faster approvals and smoother funding during peak traffic.
- Expanded approvals with analytics that look beyond a single score.
- Ongoing income from assigned contracts to stabilize cash flow.
Conclusion
Tax season is a unique window where buyer liquidity, intent, and urgency converge. Dealers that prepare inventory for refund budgets, market with refund aware messaging, streamline approvals, and expand responsibly to subprime customers consistently outperform. Pair these tactics with technology and capital that keep F&I fast and reliable, and your dealership can turn tax season into a catalyst for sustained growth. With the right partner and execution, you will sell more vehicles, protect margins, and convert seasonal momentum into year-round profitability.