If you've been thinking about selling your car, right now might be the best time to do it. Tax refund season—running from late January through April—creates a surge in car buying activity across Texas, and that demand means better offers for sellers like you.
Here's why tax season is golden for selling your car, and how to take advantage of it in the Dallas-Fort Worth area.
Why Tax Refund Season Drives Up Car Prices
The average tax refund in Texas hovers around $3,000 to $4,000. For many buyers, that's exactly the down payment they need to purchase a vehicle—or the full amount for a reliable used car.
This creates a perfect storm for sellers:
- More buyers in the market — People who couldn't afford a car last month suddenly can
- Less price negotiation — Buyers with cash in hand are less likely to haggle
- Faster sales — Higher demand means your car won't sit for weeks
- Dealers paying more — We need inventory to meet the seasonal demand
The Numbers Don't Lie
According to industry data, used car sales typically spike 15-20% during February and March compared to the winter months. In Texas specifically, the combination of no state income tax (meaning bigger federal refunds) and a car-dependent culture makes this effect even stronger.
If you're in Dallas, Fort Worth, or anywhere in the Metroplex, you're sitting in one of the hottest used car markets in the country.
What This Means for Your Car's Value
During tax season, you can typically expect:
- 5-10% higher offers compared to November/December
- Same-day sales instead of waiting weeks for a buyer
- More competition for your vehicle among buyers and dealers
That old Honda Civic you've been meaning to sell? It's worth more right now than it was two months ago—and more than it will be in June.
Best Cars to Sell During Tax Season
While all cars benefit from tax season demand, some see an even bigger boost:
- Reliable commuter cars (Toyota Camry, Honda Accord, etc.) — First-time buyers love these
- Trucks and SUVs — Texas buyers always want them, but especially now
- Cars priced under $15,000 — The sweet spot for tax refund buyers
- High-mileage vehicles that still run well — Budget buyers need affordable options
Even if your car has issues, high mileage, or needs repairs, tax season buyers are more motivated to take it off your hands.
How to Maximize Your Tax Season Sale
1. Don't Wait Until April
The sweet spot is mid-February through mid-March. That's when refund checks are hitting bank accounts. By April, the rush starts cooling off.
2. Get Multiple Offers
With more buyers competing, you have leverage. Get quotes from multiple sources—dealers, private buyers, and instant cash offer services. Compare them.
3. Have Your Paperwork Ready
Buyers with tax refund money want to move fast. Have your title, registration, and ID ready so you can close the same day.
4. Consider Selling to a Dealer
Private sales can get you slightly more money, but dealer sales are faster and hassle-free. During tax season, dealers like us are paying premium prices because we need inventory. The convenience factor is worth it.
What If You Owe Money on Your Car?
Having a loan doesn't disqualify you from selling during tax season. In fact, if you're selling a car with a lien, now is the best time—higher sale prices mean you're more likely to cover your payoff amount or reduce any negative equity.
At Crescent Motors, we handle lien payoffs directly with your bank. You don't have to coordinate anything.
The Clock Is Ticking
Tax season doesn't last forever. The IRS reports that most refunds are issued within 21 days of filing, and the majority of early filers get their money by late February or early March.
If you want to catch the wave of buyers with cash in their pockets, now is the time to act.
Whether you're in Plano, Richardson, Arlington, or anywhere else in DFW, we're buying cars right now—and paying tax-season prices for them.
Ready to Sell Your Car?
Get a free, no-obligation cash offer from Crescent Motors. Same-day payment, free pickup throughout DFW.
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