Among middle-income earners surveyed by Santander, 84% of those prospective buyers indicated they were considering a used vehicle. The findings showed a 1-point increase from the start of the year.
Leading the news: For its Q2 study conducted by Morning Consult, Santander surveyed 2,199 people with incomes between $55,000 and $167,000 in late June, asking about vehicle use and purchasing influences.
Affordability played a large role in the findings, with 71% of prospective buyers indicating that they felt priced out of the new vehicle market.
Of respondents, 81% of recent buyers indicated they considered a used car.
And, 77% stated they would prefer a used car with more features than an entry-level new vehicle.
“The main thing we’re seeing is a continuation from the prior quarters where consumers are beginning to be more open to a used vehicle than previously,” said Betty Jotanovic, President of Auto Relationships at Santander Consumer USA, the Auto business of Santander US. “Part of that is because of affordability challenges, but part of it is because of the cost of features…The consumer is prioritizing the features that come with the modern technology. A slightly used vehicle may provide more features.”
More commuters: More than three-quarters of those who responded stated they used their vehicle to get to work.
Interestingly, there was a 5-point jump from Q1, with 71% of people stating that losing access to their vehicle would put their job in jeopardy.
And even more telling, there was an 8-point jump to 55% of respondents stating they are commuting to work more days than a year ago, more than 60% for Gen Z and Millennials.
“What’s interesting about it is it coincides with the increase in gas prices,” Jotanovic said. “If you think about all the inflationary pressures, everything’s getting more expensive, interest rates remain elevated, car prices are continuing to grow, gas prices are up, and now at the same time, you’re seeing that shift of more folks having to commute.”
Delaying purchases: All those affordability challenges have led to 52% of those prospective buyers stating they have delayed purchasing a vehicle in the past year due to cost, 3% more than the opening quarter.
And three-quarters stated high auto loan rates were causing a delay in purchasing, and 88% would be more likely to buy if they could get a lower rate.
Of the buyers, 74% stated they couldn’t wait any longer before acting, and 71% sped up their decisions due to price uncertainty.
Additionally, eight in 10 stated they would be more willing to spend money to keep their vehicle running as a result of the cost of a replacement.
Dealerships remain the pick of consumers: Two-thirds of those considering buying a car indicated they are more comfortable buying from a dealership.
That included 40% stating they intended to buy from a brand-affiliated dealership.
And 16% were planning to go to an independent dealership.
The top reason for wanting to shop at a dealership was the ability to test drive the vehicle.
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Bottom line: Affordability continues to be the main challenge for shoppers at the midpoint of 2026, with no easing of pressures in sight.
“From a dealership perspective, they have to make sure to have the right inventory to be able to put the consumer in the right vehicle,” Jotanovic said.
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