Critical Shifts:
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The Used Car Pivot is Permanent: A massive 83% of prospective buyers are choosing used vehicles over new, a trend holding steady above 80% for three straight quarters.
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Features Trump "Newness": Buyers want premium value without the new-car price tag; 76% prefer a well-equipped used vehicle over a brand-new, entry-level base model.
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Fuel Efficiency is a Premium Seller: Efficiency dictates the sale, with 88% naming fuel economy a key factor and 89% willing to pay a premium for better gas mileage.
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Tax Refunds and Inflation Fears Drive Urgency: Buyers are looking to buy quickly to beat potential price hikes, and over 50% are ready to use tax refunds to fast-track their purchase.
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Santander Holdings USA, Inc. announced findings from the latest Santander US Paths to Financial Prosperity quarterly study showing middle-income Americans are financially resilient even as affordability considerations reshape household decision-making. In Q1 2026, nearly 8 in 10 (78%) say they are on the right track toward financial prosperity, while the share feeling financially insecure fell to a survey low.
Vehicle access remains a top priority for middle-income households, with 79% relying on a vehicle to get to and from work and nearly half driving to work more days per week than a year ago. As a result, 71% say they would be wildling to sacrifice other budgetary items to maintain access to a vehicle. As this demand persists, affordability is increasingly shaping when and what they buy, with used and fuel-efficient vehicles seeing strong interest.
As consumers prioritize value and affordability, 83% of prospective buyers are considering a used vehicle. This measure has stayed above 80% for the third straight quarter, demonstrating how used-car demand is becoming entrenched in today’s auto market. Additionally, 76% say they would prefer a used vehicle with more features over a new entry-level model. Fuel efficiency is also becoming a larger part of the purchase decision, with 88% of prospective buyers saying it is a key purchase factor, 89% saying they would pay more for a vehicle with better gas mileage, and 70% more likely to consider a hybrid or electric car than they were a year ago.
“Middle-income consumers are making pragmatic, budget-conscious choices because access to a car is essential,” said Betty Jotanovic, President of Auto Relationships at Santander Consumer USA, the Auto business of Santander US. “Our latest survey shows that some buyers accelerated a vehicle purchase to get ahead of potential future price increases, which may explain the jump in demand we’ve seen over the past year. More than half of prospective buyers also say they would be inclined to expedite a purchase if they receive a tax refund, which could help buoy demand as we move into Q2.”
Key indicators of household resilience remained strong. Eight in 10 (81%) feel secure in their jobs, 83% say they have enough saved to cover a small emergency, and 76% are current on all their bills—a six percentage point increase over last quarter.
While stability and being able to meet expenses is a core component of how middle-income households view financial prosperity, flexibility ranked among the top factors in Q1. Nine in 10 say prosperity means being able to make choices, and 86% say success is measured more by financial freedom, not merely by what they own.
The Q1 Santander US study, which builds upon 12 quarters of research, looks at middle-income Americans’ current financial state and outlook for the next 12 months. It examines how economic conditions and other trends are impacting these households and the adjustments they are making in response, including their vehicle, banking, and housing needs.
This research, conducted by Morning Consult on behalf of Santander US, surveyed 2,150 Americans ages 18-76 who are bank and/or financial services customers. Survey participants are employed or looking for work, own/use at least one financial product, and are the primary or shared decision-maker on household finances with household income in the “middle-income” range of ~$55,000 to $167,000. This Q1 study was conducted March 25-28, 2026.
