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KBB Poll: Payroll tax increase will impact auto buying decisions

By KBB.com Editors on February 14, 2013 3:53 PM

KBB Poll: Payroll tax increase will impact auto buying decisions

Despite lingering softness in the overall economic recovery process, Kelley Blue Book's Automotive Insights group remains cautiously optimistic about the ability of the U.S. auto market to maintain a good deal of the momentum evidenced by robust vehicle sales in January that translate into a 15.3-million unit seasonally adjusted total for 2013. However, the results of a KBB Quick Poll conducted earlier this week found that the expiration of the 2-percent payroll tax holiday is likely to have a meaningful impact on exactly when potential buyers may step into the market as well as on what vehicles they choose when they do.

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Conducted by Kelley Blue Book's Market Intelligence group among visitors to KBB.com, the Quick Poll discovered that 39 percent of respondents planned to delay their purchase of a new vehicle for at least some period of time as a result of this reduction in take-home pay. While 28 percent indicated that the change would have no influence on their plans, 27 percent claimed it would decrease the amount they intended to spend. Only 13 percent said they were not familiar with the payroll tax holiday change.