Middle-income Americans expedited their car-buying plans in Q2, looking to dodge the potential of higher vehicle prices—with many of them now ready to sign on the dotted line.
The details: A study by Santander, shared with CDG News, found that the uncertainty surrounding car prices prompted more primary or shared decision-makers in households (with an income of $53K to $161K) to accelerate their vehicle purchasing timelines.
For consumers surveyed June 16 – 18, more than half (55%) are considering buying a vehicle—a new high observed by Santander.
Those considering a vehicle purchase outpaced those delaying a vehicle purchase for the first time in the eight quarters of the survey.
Nearly one in five (18%) expedited key purchases in Q2 amid price uncertainty—with 41% buying a vehicle.
Santander found that 50% of prospective buyers say they are now more likely to take out an auto loan, 48% are more likely to purchase a used vehicle, and 42% are more likely to transact in the next three months.
Why it matters: Middle-income Americans (in anticipation of rising prices) are accelerating car purchases—creating a prime opportunity for automakers and dealerships to capture demand in the third quarter.
Between the lines: The high number of middle-income Americans still committed to purchasing a car is driven by one primary factor—the need for a vehicle to maintain their lifestyle.
Nearly 9 in 10 (87%) say vehicles give them greater flexibility in how and where they live.
Most (78%) of middle-income Americans rely on a vehicle to get to and from work.
What they’re saying: “Despite some uncertainty in the market, middle-income consumers remain optimistic about their financial standing and continue to appreciate the importance of vehicles in their lives. Our research finds consumers are taking proactive steps to secure what matters most, especially autos,” said Betty Jotanovic, President of Auto Relationships for Santander Consumer USA.
Bottom line: Stakeholders—especially automakers, dealerships, and lenders—should act swiftly to capitalize on a surge in motivated, financially confident middle-income buyers. With more consumers ready to purchase despite economic headwinds, strategic incentives, targeted marketing, and streamlined financing options in Q3 could significantly boost revenue and market share.
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