January is the kick-off for tax season in the US, and with it comes a wave of refund checks that consumers will be eager to spend.
The IRS starts accepting filings on January 23, with a deadline of April 18.
This means by late March, the majority of taxpayers expecting refunds will have their payments in hand. And, according to National Retail Federation data, 1 in 10 consumers plan to use their refund for a “major purchase,” like a new car!
Don’t miss out on this opportunity to start the year off strong and drive sales with tax season advertising…
Smaller Refunds in 2023
This year’s tax season will be markedly different than last year. The average refund in 2022 was $3,200. But, the IRS is warning taxpayers that returns will be lower this year.
That’s mostly due to expiring COVID-related tax rebates and child tax credits.
January: Start Early, Plan for Tax Season Success
January is often a slower month for car sales, so starting your advertising efforts early can help drive traffic to your dealership and increase sales.
Use this month to get a jump on your marketing efforts for the entire year, and especially tax season, and build momentum for future sales:
- Analyze your inventory and determine which vehicles to promote during tax season and which to sell at full price
- Stock up on inventory if possible
- Optimize your Google Business Profile by updating hours, website link, photos, and other highlighting tax season specials using Google posts
Starting your advertising efforts early will give you more time to fine-tune your strategies before tax season peaks in March.
February: Drive Sales with Early Tax Season Advertising
Taxpayers will begin getting their refund checks in February. Start your tax season messaging early to reach potential customers before they make other major purchases with their refund!
Remember, when it comes to refund checks, you’re not just competing against other dealerships. Other major purchases like appliances, computers, electronics, real estate, furniture, and vacations also compete for shoppers’ attention.
Here are some ways to entice shoppers to spend their refund check at your dealership during tax season:
- Highlight low financing options, especially in light of current economic conditions such as inflation and high-interest rates
- Offer a “tax refund match” promotion where the dealership matches the amount of the shopper’s refund up to a certain amount towards the purchase or lease of a vehicle
- Advertise a “tax season trade-in bonus” for customers who trade in their old vehicle during the promotion period
- Create a sense of urgency by advertising limited-time offers that expire at the end of tax season.
Finally, plan to increase your ad budget from February through mid-April. AutoSweet recommends an increase of ~20% for most dealerships during these critical months.
March: The Peak of Tax Season Advertising
By March, refunds are beginning to hit bank accounts. By the end of the month, most taxpayers expecting a refund will receive it. So your advertising should reach its peak this month.
Start your early ad analysis now. Take a look at your results so far. Are your specials working? Do you need to promote more vehicles?
April: Evaluate Tax Season Results and Prepare for Summer
Shift your ad budget back to normal by mid-April once the season has closed.
Then measure your success. What worked and what didn’t this year? Make notes for next year and learn from your experience.
Next, start your planning for Memorial Day and the summer season!
Get a Head Start on Tax Season this January
Get a head start on your tax season marketing with AutoSweet’s Tax Season Preparation Guide. This comprehensive guide includes a tax season reference calendar, 20 unique ad copy ideas, and top tax season campaign strategies.
Or, schedule a free tax season strategy session with one of our digital marketing experts by filling out the form below!
