A new study from Edward Jones and Gallup found that most Americans are stressed or conflicted about their finances, highlighting the affordability pressures many consumers face when considering a vehicle purchase.
The details: The study, based on a survey of 5,075 U.S. adults, found that just 16% of Americans are financially fulfilled, while 32% are financially stressed, and 51% are financially conflicted.
While 46% of Americans rate their current financial situation as good or excellent, 55% say their finances are getting worse, continuing a multiyear trend in which more consumers feel their financial position is deteriorating rather than improving.
Among financially stressed Americans, 52% say their finances “often” or “always” control their lives, compared with 12% of financially conflicted consumers and just 1% of financially fulfilled consumers.
Financial fulfillment rises sharply with income, ranging from 3% among households earning less than $35,000 annually to 37% among those earning $175,000 or more.
What they’re saying: “Financial stress isn’t limited to people in crisis – it’s affecting millions who appear stable but don’t feel secure or fulfilled,” said Penny Pennington, managing partner of Edward Jones, per a press statement.
Why it matters: The findings highlight the affordability challenges facing consumers as vehicle prices, monthly payments, and borrowing costs remain elevated, pointing to how financial stress could continue to shape vehicle choice, financing preferences, and demand for lower-cost new and used vehicles.
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Between the lines: Consumers' ability to manage their finances plays a significant role in their level of financial stress and overall sense of financial well-being.
Financially stressed consumers were more than twice as likely as financially fulfilled consumers to report a large, unexpected expense in the past year (53% vs. 21%) and were far more likely to report a significant decline in wealth or net worth (44% vs. 4%).
Debt reduction is a top priority for 65% of financially stressed consumers, compared with 18% of financially fulfilled consumers. Increasing household income is also a high priority for 67% of stressed consumers versus 17% of fulfilled consumers.
Financially fulfilled consumers are far more likely to have emergency savings (98% vs. 45% of stressed consumers), retirement plans (91% vs. 35%), and savings earmarked for major expenses or life events (88% vs. 24%).
Also worth noting: Nearly three-quarters of Americans (73%) rely on their own internet research for financial guidance, but financially fulfilled consumers were far more likely to have worked with a professional financial advisor during the previous year (60% versus 14% of financially stressed consumers).
What this all tells us: Consumer affordability pressures remain a defining factor in the auto market, signaling that closing the deal will increasingly depend on offering flexible financing solutions, affordable vehicle options, and a transparent purchase experience that addresses shoppers' financial concerns.
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