Middle-Income Americans Accelerated Car Buying Plans in Q2, Santander US Survey Finds

• 55% are considering buying a vehicle, a new survey high.
• Those considering a vehicle purchase outpaced those who delayed a vehicle purchase for the first time in the survey's history.
• Nearly one in five (18%) expedited key purchases in Q2 amid future price uncertainty, with 41% of them buying a vehicle.
• Despite future price uncertainty, middle-income Americans remain resilient, with three-quarters believing they are on the right financial track.

Santander Holdings USA, Inc. ("Santander US") today announced new survey findings that show middle-income Americans have accelerated their car buying timelines amid uncertainty about future prices. While 52% had delayed a vehicle purchase over the past year due to cost, 55% are now considering buying in the year ahead, up from 47% in Q1. This is the first time in eight quarters of research that prospective buyers outnumber those delaying a purchase—indicating that pent-up demand may be transitioning to sales activity. Additionally, 18% expedited key purchases in Q2 to get ahead of any price changes, with 41% of them buying a vehicle.

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"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," said Betty Jotanovic, President of Auto Relationships at Santander Consumer USA. "Our research finds consumers are taking proactive steps to secure what matters most, especially autos. While they may have to make certain trade-offs, households are focused on maintaining vehicle access and prioritizing it within their budgets."

This rising demand for autos comes at a time when most middle-income Americans (75%) still feel they are on the right financial track and acknowledge the importance of vehicle access for maintaining their prosperity. For instance, nearly 9 in 10 (87%) say vehicles give them greater flexibility in how and where they live, and most (78%) rely on a vehicle to get to work. As such, consumers are closely watching how future price uncertainty could affect their purchasing plans, and they are adjusting expectations accordingly. For example, 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. Prospective buyers have already begun to take steps toward purchasing, including 62% who have researched options and 48% who have visited a dealership.

The Q2 2025 Santander US study, which builds upon nine quarters of research, looks at middle-income Americans' current financial state and economic outlook. It examines how economic conditions and future price uncertainty are impacting these households, as well as demand for autos, utilization of banking products and more.

Consumers Remain Resilient Despite Ongoing Concerns

Middle-income Americans' optimism about their personal finances remains strong, as most are current on their bills (75%) and feel secure in their jobs (79%)—the two factors most closely tied to financial prosperity. Additionally, more than half (52%) say they are handling higher prices better than they were a year ago, up from 45% at the same time last year. Concerns about inflation persist, however, with it remaining consumers' top financial obstacle. Furthermore, 86% expect prices on goods to continue rising in the coming months, and 65% worry they won't be able to afford further increases.

Consumers Still Miss Out on Earning Competitive Rates on Savings

While eight in 10 agree their bank provides resources that are helpful for achieving financial prosperity, there is still an opportunity for consumers to earn more interest on their deposits to help offset inflation and accelerate their savings goals. More than four in 10 (46%) have moved money to earn a higher interest rate on their savings, up from 32% two years ago. Among those who are aware of the interest rate on their savings, half (50%) earn at least a 3% annual percentage yield (APY).

Multifamily Housing Viewed as More Affordable, as Recent Homebuyers Feel Financial Strain

As home prices remain elevated, recent homebuyers—those who purchased homes since March 2020—are feeling the strain of ongoing ownership costs. Nearly three-quarters (74%) report having to cut back on spending to keep up with expenses, up from 69% last quarter, and 64% say they live paycheck to paycheck, an eight-point increase. By contrast, only 50% and 36%, respectively, of longer-term homeowners report the same challenges. Meanwhile, renting and multifamily homes are viewed as more cost-friendly alternatives. More than seven in 10 of those living in multifamily homes (71%) believe it allows for greater financial flexibility, and 61% of renters say it is more affordable than having a mortgage.

This research on financial prosperity, conducted by Morning Consult on behalf of Santander US, surveyed 2,200 Americans who are bank and/or financial services customers, ages 18-76. Survey participants are employed or looking for work, own/use at least one financial product and are the primary or shared decision-maker on household finances with household income in the "middle-income" range of ~$53,000 to $161,000. This Q2 study was conducted June 16 – 18, 2025. The interviews were conducted online, and the margin of error is +/- 2 percentage points for the total audience at a 95% confidence level. Percentages may not total 100 due to rounding. The data was weighted to target population proportions for a representative sample based on age, gender, ethnicity, region and education.

The full report and more information about the Santander US survey is available HERE.

About Santander US

Santander Holdings USA, Inc. (SHUSA) is a wholly-owned subsidiary of Madrid-based Banco Santander, S.A. (NYSE:SAN) (Santander), recognized as one of the world's most admired companies by Fortune Magazine in 2025, with approximately 175 million customers in the U.S., Europe and Latin America. As the intermediate holding company for Santander's U.S. businesses, SHUSA is the parent company of financial companies with more than 11,300 employees, 4.5 million customers and assets of $165 billion in the fiscal year ended 2024. These include Santander Bank, N.A., Santander Consumer USA Holdings Inc., Banco Santander International, Santander Securities LLC, Santander US Capital Markets LLC and several other subsidiaries. Santander US is recognized as a top 10 auto lender as well as a top 10 multifamily bank lender and servicer and has a growing wealth management business. For more information about Santander US, please visit www.santanderus.com.

Santander Bank, N.A. is a Member FDIC and a wholly owned subsidiary of Banco Santander, S.A. © 2025 Santander Bank, N.A. All rights reserved. Santander, Santander Bank, and the Flame Logo are trademarks of Banco Santander, S.A. or its subsidiaries in the United States or other countries. All other trademarks are the property of their respective owners.

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