- Middle-income households feel confident about their own financial situations despite ongoing price pressures.
- Americans rely on vehicles for work and economic opportunity, sustaining demand even as affordability reshapes purchase decisions.
- Consumers show strong interest in used and fuel-efficient vehicles as they prioritize affordability and value.
- Most consumers see practical benefits to artificial intelligence (AI) in supporting their finances.
- Prosperity is increasingly defined by flexibility and choice, not just financial accumulation.
Santander Holdings USA, Inc. (“Santander US”) today announced findings from the latest Santander US Paths to Financial Prosperity quarterly study showing middle-income Americans are financially resilient even as affordability considerations reshape household decision-making. In Q1 2026, nearly 8 in 10 (78%) say they are on the right track toward financial prosperity, while the share feeling financially insecure fell to a survey low.
Vehicle access remains a top priority for middle-income households, with 79% relying on a vehicle to get to and from work and nearly half driving to work more days per week than a year ago. As a result, 71% say they would be willing to sacrifice other budgetary items to maintain access to a vehicle. As this demand persists, affordability is increasingly shaping when and what they buy, with used and fuel-efficient vehicles seeing strong interest.
As consumers prioritize value and affordability, 83% of prospective buyers are considering a used vehicle. This measure has stayed above 80% for the third straight quarter, demonstrating how used-car demand is becoming entrenched in today’s auto market. Additionally, 76% say they would prefer a used vehicle with more features over a new entry-level model. Fuel efficiency is also becoming a larger part of the purchase decision, with 88% of prospective buyers saying it is a key purchase factor, 89% saying they would pay more for a vehicle with better gas mileage, and 70% more likely to consider a hybrid or electric car than they were a year ago.
“Middle-income consumers are making pragmatic, budget-conscious choices because access to a car is essential. Our latest survey shows that some buyers accelerated a vehicle purchase to get ahead of potential future price increases, which may explain the jump in demand we’ve seen over the past year. More than half of prospective buyers also say they would be inclined to expedite a purchase if they receive a tax refund, which could help buoy demand as we move into Q2.”
Betty Jotanovic
President of Auto Relationships at Santander Consumer USA, the Auto business of Santander US
Prosperity is Increasingly Defined by Flexibility and Adaptability
Key indicators of household resilience remained strong. Eight in 10 (81%) feel secure in their jobs, 83% say they have enough saved to cover a small emergency, and 76% are current on all their bills—a six percentage point increase over last quarter.
While stability and being able to meet expenses is a core component of how middle-income households view financial prosperity, flexibility ranked among the top factors in Q1. Nine in 10 say prosperity means being able to make choices, and 86% say success is measured more by financial freedom, not merely by what they own.
Consumers See Practical AI Benefits Outweighing Broader Uncertainty
The Q1 findings show that consumers see practical value in AI when it comes to personal finances. Most (85%) can identify at least one way AI could support their financial prosperity, and more than half say AI will help their financial prosperity in the next 12 months. Consumers most often associate AI’s value with learning new skills, making better saving or investment decisions, and budgeting or managing money more efficiently.
AI is also becoming a more practical part of the car-buying and financing journey, helping consumers move through the process with greater confidence. More than half of middle-income Americans who shopped online in their car-buying journey used AI to make more informed decisions on vehicle and financing options.
Affordability is Central to Housing Success
While homeownership is an aspiration for some middle-income Americans, Q1 findings show that practical considerations are shaping housing choices. More than 6 in 10 report that an affordable monthly housing payment matters more than owning a home, and 65% prioritize flexibility in their living situation over staying in one place long term. Among renters, more than half feel that current home prices make owning feel less necessary, reinforcing how affordability pressures are influencing housing choices.
Together, these findings reinforce how flexibility and practicality are increasingly defining financial prosperity for middle-income households.
The full report and more information about the Santander US survey is available HERE.
Methodology
The Q1 Santander US study, which builds upon 12 quarters of research, looks at middle-income Americans’ current financial state and outlook for the next 12 months. It examines how economic conditions and other trends are impacting these households and the adjustments they are making in response, including their vehicle, banking, and housing needs.
This research, conducted by Morning Consult on behalf of Santander US, surveyed 2,150 Americans ages 18-76 who are bank and/or financial services customers. 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 ~$55,000 to $167,000. This Q1 study was conducted March 25-28, 2026. 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.