A car is more important to some than you might expect
Over half of middle-income Americans are eyeing a new car purchase – and most know they’ll have to sacrifice other things in their budget to get the new car, truck, or SUV they’re eyeing. The uptick in new-car pricing, with the average cost creeping above $50,000 for the first time, is also prompting people to take a much harder look at buying used vehicles. Used cars offer an opportunity to get a “new to you” vehicle that doesn’t skimp on critical technology, such as advanced safety features.
The data also shows that respondents feel they’re on the right financial path, overall, even if they do have to sacrifice expenses elsewhere to get into a new vehicle. Affordability is the main reason more people are considering used vehicles, where buyers believe they can stay within budget without sacrificing on features.
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Make budget cuts, or buy used
“We’re seeing growing activity in the auto market, with more consumers preparing for their next purchase,” notes Betty Jotanovic, president of auto relationships at Santander Consumer USA. “Vehicles remain central to people’s lives—not only to get to work, but as a source of freedom and flexibility. For middle-income Americans, access to a vehicle is both a practical necessity and a pathway to opportunity.”
“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,” Jotanovic adds. “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.”
This time last year, only 43 percent of consumers were eyeing a new car. In 2025, that number has risen to 54 percent, a staggering 11 percent uptick. 72 percent say they are willing to cut their budget elsewhere to afford a car, and 81 percent say they would consider a used vehicle to stay within their budget. 90 percent of respondents say their interest in buying a used vehicle has grown in the past 12 months. 79 percent of Americans queried say they believe they are on the right “financial track,” a record high, per Santander.
Some vehicles retain their value well, while others leave you saddled with a huge loan and wild depreciation. A new vehicle offers the latest features at attractive interest rates, while used vehicle loans are typically a few points higher. Santander’s data was compiled in Q3 2025, but dealerships are now bloated with inventory, so these findings may signal a busy holiday sales season.
Final thoughts
78 percent of respondents say inflation remains a concern, with 52 percent saying they feel they’re handling the rising cost of goods better than they were last year. It’s interesting that the percentage of respondents who feel they are handling inflation well and those interested in buying a new car are almost identical. Even more curious is that last year, 43 percent said they felt they were handling their budgets well during inflation, the same percentage as those considering a new vehicle purchase in 2024. This underscores that the auto industry relies on a healthy economy more than anything else.
