Affordability continues to be a driver in vehicle purchasing decisions, with buyers looking at new and used options to find the top value and arriving at dealerships more informed.
According to the Santander US Paths to Prosperity 2026 Q1 study, 81% of recent buyers considered a used vehicle, and more than half are using AI to research vehicles.
What we know: Santander Holdings’ quarterly study conducted by Morning Consult on behalf of the lender surveyed 2,150 Americans in March with incomes ranging between $55,000 and $167,000.
The study showed that 79% of the demographic relied on a vehicle to get to work.
Additionally, nearly half of the respondents stated they are driving to work more days than last year, as more people returned to the office instead of working from home.
“The study continues to double down on the fact that Americans increasingly depend on a vehicle to get to work and get to school,” Betty Jotanovic, President of Auto Relationships at Santander Consumer USA, told CDG. “For most Americans, it's not a discretionary purchase; it's a necessity.”
Zooming in: Interestingly, 49% are considering a vehicle purchase in the next year, and the same amount have delayed a purchase due to the cost.
Jotanovic noted that some of the pandemic-era supply and demand pressures have eased, but tariffs, high interest rates, and vehicle prices are now chief concerns for buyers.
Still, 90% of consumers who did pull the trigger on buying a vehicle expressed satisfaction with their decision. This came as new vehicle prices approached $50,000 and used prices more than $30,000.
The findings:
88% found a vehicle in their budget.
81% stated vehicle prices were in line with expectations.
70% made some sacrifices to purchase an affordable vehicle.
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Looking for options: Many consumers expressed a willingness to consider a used vehicle to fit their budget. The study found 83% of prospective buyers were considering a used vehicle, and 69% felt priced out of the new market. Also, 76% would prefer a used vehicle with more features over a new entry-level vehicle.
“That goes to the consumer looking for value,” Jotanovic said. “You can get a new car that's stripped down and doesn't have the features, but at the same time, it's these features that have made the cars safer and the technology that makes the cars more desirable. This is really just another indication of consumers being a little more proactive in their car search and understanding the features that they want, and looking for that value and prioritizing slightly used, yet having all the features.”
More informed buyer: AI is helping those consumers arrive on the lot with more information on vehicle features, pricing, and financing, with 52% conducting research using AI. That was up 2% from the end of 2025.
Jotanovic said more consumers are doing additional research on financing.
“The consumer wants to have that optionality to be able to come in educated, not just in terms of the vehicle that they want, the features that they want, but what is a fair price for that vehicle. Not just the vehicle before the financing, but what are your rates and rates in the market? What I'm hearing from our dealer body is it's no longer, Mr. Dealer, what financing can you provide for me? But rather, I saw that such and such bank, credit union, or finance company is offering a rate of X percent, and so they come in and want to get that.”
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