Auto demand among middle-income Americans is climbing, despite rising new vehicle prices and lingering economic uncertainty.
The details: A new study by Santander reveals that more consumers in households earning between $53,000 and $161,000 are considering purchasing a vehicle than a year ago.
54% of middle-income consumers are considering buying a vehicle in the next 12 months, up from 43% in 2024.
72% are willing to sacrifice other budgetary items to maintain access to a vehicle (the highest level in two years).
Digging deeper: Rising auto demand among middle-income Americans extends beyond new vehicles, with more buyers open to exploring used options to stay within budget.
81% of potential buyers would consider a used vehicle, and 90% say their interest in used cars has grown over the past year.
89% agree that used vehicles offer good value with modern features and technology, while 84% believe purchasing used is often the smarter choice.
What they’re saying: “We’re seeing growing activity in the auto market, with more consumers preparing for their next purchase,” said Betty Jotanovic, President of Auto Relationship at Santander. “For middle-income Americans, access to a vehicle is both a practical necessity and a pathway to opportunity.”
Why it matters: Lenders serving this segment face continued pressure to offer flexible terms, longer loan durations, and lower payments, while maintaining prudent risk standards for subprime lending.
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Between the lines: While affordability remains a key driver of purchase decisions, middle-income Americans appear less discouraged by market headwinds such as tariffs—buoyed by growing confidence in their personal finances.
79% feel they are on the right financial track( a new survey high), with 75% staying current on bills and 81% feeling secure in their jobs.
78% still see inflation as a major concern, but 52% say they’re handling higher prices better than a year ago, up from 43% last year.
Bottom line: “Affordability continues to be a driving factor for today’s buyers, and it’s encouraging to see that so many of them are finding vehicles that fit within their budget,” said Jotanovic. “The increased openness to used cars reflects both practicality and resilience—buyers know they can get value, modern features, and reliability while maintaining financial flexibility.”
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