Between the months of February and June, when people receive their federal tax refunds, there are a lot of potential customers whose pockets are swollen with money. Many of them are on the lookout for a good deal on a used car. In tandem with the rising demand, car prices generally increase during this season. However, when people have more money, they are likely to throw caution to the winds and bid higher. As a result, they can end up paying much more for a car than they initially expected.