For most Americans, buying a car requires financing, and financing requires a down payment. Nationwide the average down payment is 11% of the purchase price, although it is much better for the buyer if she can pay 20%. Either way, coming up with a significant lump sum can be a challenging obstacle for most of your potential customers.

Tax refunds often come to the rescue. For many Americans their tax refund is the only windfall they receive in a given year, and it may be the only thing that positions them to buy a car off your lot.

Dealerships have targeted this source of new business for decades. Some even contract with third parties so they can process refund checks right in their showroom – often in a fraction of the time a tax preparation company would take to do the same thing.

But most dealers focus on this business potential in February and March. That’s a good plan, because early filers usually expect a refund. Over 67 million people filed their taxes on-time or early this year and many of them got their refund before tax day.

But over 12 million people filed for an extension. That means another 12 million potential customers will file between now and October 15.  It’s impossible to know why someone requests an extension. Family issues, health issues, a major project, extended travel, or even the desire to put off a refund for budgeting or legal reasons might be in play.  

Savvy dealerships don’t make any assumptions – especially not this year, when over 82% of taxpayers will get a refund and when the average refund will be a healthy, down-payment-worthy $2,969.

In other words, millions of potential car buyers are still out there.

And they’re in a responsible mood. While 61% of respondents to a TD Ameritrade survey said they would save their refund, a solid 18% said they would use it for necessities such as the car you’re ready to sell them.

Let your competitor believe that all the tax refund sales have been made while you prepare to close more of them. Make sure that when a customer is ready to write you a check you can accept it with confidence. CrossCheck’s automotive remote deposit capture solution, known as C.A.R.S., can help by providing you with:

• Check guarantee that mitigates the risk of accepting checks from strangers
• Payment flexibility with multiple check, which allows consumers to write 2-4 checks to be deposited over a 30 day period
• Remote deposit capture which allows you to deposit checks without leaving your office, saving time and money

It applies to the down payment process as well as parts and service. Reduce customer payment risk, save money, and give your sales team the tools they need to close the deal.

Learn more about C.A.R.S. and its benefits by downloading our free guide below: