The team over at SEMA, you know them as the group that supplies the automotive industry with aftermarket performance and cosmetic accessories, have asked more than 1,000 automotive enthusiasts how they intend to spend their federal tax rebate checks. Of course, we know what SEMA wants the answer to be...
Interestingly enough, most surveyed (21%) said they would use the money to pay down credit cards. Another large chunk (20%) said they'd bank the cash for now. Of those who said they'd spend the money on specialty automotive equipment, most intend to buy wheels, exhaust kits, cold air intakes, and engine performance accessories. From survey results, SEMA was able to determine most enthusiasts have altered, and delayed, buying specialty equipment due to the high cost of fuel. In fact, some of the hottest aftermarket performance parts right now are specifically designed to enhance fuel economy. We think you just found an excuse for that new CAI. Check out the press release after the jump.
[Source: SEMA]
Millions of tax-paying consumers have began receiving their federal tax rebate checks, and according to a survey sent to automotive enthusiasts last week, 18% said that they plan to purchase custom parts and accessories for their vehicles. The consumers surveyed were current subscribers to automotive enthusiast magazines. The average age and income of these respondents were 46 and $97,000, respectively.
A total of 1,032 enthusiasts answered the survey. The highest percentage of these consumers noted that they plan to pay off credit card bills (21%), followed closely by those that plan to put their rebate check money in the bank (20%).
Other survey findings include:
• Of those who plan to buy specialty equipment, the top "first" accessory choices were custom wheels (8%), exhaust kits (7%), cold air intakes (4%), engine performance tuners (3%), and custom suspension parts (3%).
• For consumers 30 years old and younger, 29% indicated that they plan to purchase specialty equipment and 22% indicated that they plan to put the money in the bank. The most popular specialty-equipment product this group will purchase first: custom wheels (12%).
• 10% of the entire sample surveyed plan to use their rebate money to pay for everyday items, such as groceries and clothing; 8% toward a vacation; 2% for home improvements; 2% to purchase home electronics, such as big-screen televisions; and 19% indicated "other." These "other" write-in responses included regular bills, new furniture, college tuition, fixing their vehicles and off-setting the higher costs of gasoline and diesel.
The increasing cost of gasoline is affecting whether enthusiasts purchase custom automotive parts and accessories. When asked whether current fuel prices have caused them to delay buying specialty equipment for their vehicles, 50% said "yes." Only 33% of survey respondents gave the same answer two months ago when the national average for a gallon of gasoline was $0.35 less than the current average.
Jeff Lawson, an enthusiast from North Carolina, remarked: "I am a car guy, but with rising fuel costs, grocery costs and high unemployment rates, I have altered my automotive spending habits."
Enthusiasts recognize that certain specialty-equipment products are beneficial in order to mitigate the effects of higher fuel costs, however. "Right now anything that helps on gas mileage is sounding pretty good," noted Darin Tenney from Oklahoma.
Consumers want specialty-equipment products that help to increase fuel economy, and many products manufactured have been shown to actually enhance fuel economy along with performance gains. So companies that effectively communicate this message to their customers could profit from upcoming tax-rebate spending.
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Reader Comments (Page 1 of 2)
nissanfreak87 @ May 16th 2008 6:03PM
Mine WAS going toward the purchase of a 350z, but seeing as I'm still in college, my parents filed me as a dependent which meant I didn't get one.
Too bad I never heard that bit in the news...
Steven @ May 16th 2008 6:04PM
Yep, it is helping me get my Camaro off jackstands.
Benfolio @ May 18th 2008 11:42PM
Replace "Camaro" with "DSM", and it'd be more believeable.
Joe @ May 16th 2008 6:15PM
Fujita SRI for the SI all ready purchased and a GPS (Garmin Navi 200W) so I no longer get lost driving for work.. rest is going toward vacation!
Kevin @ May 16th 2008 6:31PM
I almost used mine towards a 1970 Cadillac... until the brakes (which the seller had had redone) failed on the test drive. which pretty much took care of that. Ended up buying a 1,000w amp for my home stereo.
May still end up with a Cadillac later... Depends on how many people start putting their sub-10mpg 'project' cars up for sale after finding out that they can't/don't want to afford them anymore.
iOrange @ May 16th 2008 7:00PM
I am buying a PS3 and GT4 Prologue.... Spent too much money on my car already this year.. Already got a tuner, cold air intake, and exhaust this year... doing my part to support aftermarket!
Anthony @ May 19th 2008 4:13AM
That's what I was going to do until I found that even though Dubya ment this to be spent in a retail fashion, I owe the IRS $468.75 after I make this month's payment...
So I only get $131.25 of it, might upgrade the PC I just built with a video card and new MB (ATI 690 chipset vs AMD 780 chipset = 2.4x faster) with Hybrid Crossfire (SLI for ATI fans) or a 500GB SATA drive.
I spent roughly $9,000 on upgrades on the car last year, finally installed the final bits (S3R w Toys) last weekend - 380+hp/400+lbs :)
Z Monster @ May 16th 2008 7:42PM
saving it for the purchase of 09 Audi A3 2.0T quattro DSG. when it comes out
John @ May 16th 2008 8:45PM
The tax rebate is such a stupid idea. It's like taking out a credit card cash advance. There's little short term benefit and it just runs the US debt into the stratosphere. I'm a Republican and I am so disappointed in the lack of real leadership in the party with dumb, feel good, policies.
The best thing car enthusiast's can do is pay off the debt they have already accumulated with their vehicles. We are headed into the worst economic time since the 1970's.
IK47 @ May 16th 2008 9:19PM
We?
I'm from Canada eh?
mk @ May 17th 2008 12:39AM
Agreed with John.
This is a cash advance on future taxes, complete with interest being levied.
People talk about a tax rebate not being repayable, because it is our money coming back to us... are only seeing things in the now. Future obligations and interest on the deficit spending are going to reclaim this money, and then some, not to mention the money being less and less worth the work done to earn it.
as long as spending doesn't decrease, and as long as the budget isn't balanced, this is borrowed money, and will need to be paid back.
it is monumentally stupid to give people a *token* of their money back, while not being pro-active about solving the underlying reasons for the market instability, and government's own mis-management.
The only answer is this:
Less government spending on FAR less social programs (which are better served in the private sector by businesses and charities anyway) and correspondingly lower taxation.
Think about saving thousands more of your hard earned dollars by not having them seized as taxes on a permanent basis. Plus, no investment, capital, or corporate income taxes means your employers, a private business that you own keeps more of it's assets, and pays you better, ALSO.
A raise, and less taxes for every income earner in the country... gee, that wouldn't stimulate the economy, or anything.
The only one who would lose out would be the politicians losing the control over YOUR purse strings that they shouldn't have had in the first place. And they wouldn't lose that much, considering that every tax cut ever enacted has resulted in surplus tax revenue due to economic growth.
I would cut taxes to the point where the government would see less revenue, but would have less to spend it on anyway, and people would be *FREE* to spend their money as they see fit, and responsible for their own circumstances.
But that is just me. I am far too conservative to be elected to anything, and I am not interested in playing political power games, or dealing with that sort of bullcrap. And I would have a deaf ear to turn toward people who want government to bail them out of their own consequences.
That makes me a "cold-hearted conservative jerk", which is far worse to most non-conservatives than merely being a milquetoast republican.
But it also makes people with an entitlement mentality to have no option but to pull themselves up by their bootstraps, and for people to value responsibility again. Entitlement is the sworn enemy of responsibility. I see it every single day.
All that being said, and still thinking that these stimulus checks are a band-aid over a bullet wound, it is my money, not the government's... and I am thinking about one or two discretionary items that I otherwise would forgo, due to not having hundreds of un-allocated dollars in my monthly budget normally. I would have MUCH more discretionary spending if the tax structure would be much more appropriately lower, as I said.
Maybe then next month, I could buy car parts, too, instead of it being a one-time meager refund.
The Talking Hamburger @ May 18th 2008 12:53AM
Please mail the rebate you don't want to 555 Airport Boulevard, Frisco City, Alabama, 36578.
doug @ May 16th 2008 10:01PM
I spent mine jumpstarting my Ariel Atom. Sounds expensive? Well, it is when you back your leased car into a parked trailer and put a hole in the bumper while lining it up with your Atom. Ugh. Got the Atom started though...
Psyopper @ May 16th 2008 10:22PM
My check went to my car. It went for a head gasket, a water pump, an assortment of seals and gaskets and a few tools I was missing to do the head gasket job on my Miata.
Yep, the day we got our check my head gasket popped it's cork. $800 and counting so far.
http://psyopper.wordpress.com/replacing-a-miata-head-gasket-intro/
Alex M @ May 17th 2008 12:39AM
Well, I'm from Canada and were getting out tax returns back now. For my $2600 I'm getting back this year I'm putting ~1000 into getting some big brakes for my Mk2 GTi.
Kristovar @ May 17th 2008 1:12AM
@MK
Thanks for making the most intelligent comment I've heard since I can remember. I guess I'm just part of the vast right wing conspiracy along with you, despite my friends here in Texas calling me a liberal.
Unfortunately in this day and age people refuse to use their own grey matter to use their money and would prefer to let those in Washington decide their fate. I don't know what's coming to this country, but I'm afraid.
www.FreeGasFast.com @ May 17th 2008 6:53AM
I plan to use my rebate to pay for the additional fees for excess mileage accumulated on my leased Nissan Frontier, and to get another leased pickup truck. Can someone give me an offer? I'll right-off my vehicle lease , vehicle expenses (tax deductions), and stick it back to the govt. who don't give you true information regarding our economy by not considering "real" cost of living expenses for food, higher banking interest rates, and ridiculous price and tax for gas. Everyone should look for "FreeGas" opportunities. There you have it, tax rebate + tax write-off + Fee Gas Opportunity to bring down "real" expenses. Take control of your destiny, and use your dream vehicle/auto to your destination of choice on your own terms. God Bless you, your family, community, county, state, and the U.S.A.
James Mangold @ May 17th 2008 6:14PM
I using it towards my daughter's wedding
The Talking Hamburger @ May 18th 2008 12:52AM
You're 100% right, mk. You're too damn conservative to get elected, and that's a good thing.
After eight years of George W. Bush, you morons shouldn't even have a vote in 2008. And that's the real shame of Hillary Clinton's impending loss...another Clinton presidency would've been one hell of a payback.
Dan Parmelee @ May 18th 2008 9:08AM
Yes, I'm sure that a $900 exhaust system will save $900 in fuel...I'm sick of hearing about how all these performance mods increase gas mileage.
Anyways, mine is going to pay down the principal on my car loan. In a few years, I'll be glad I did this.