Exclusive: Car buyers aren't waiting for prices to go higher, survey finds
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Middle-income Americans have accelerated their car-buying timelines amid worries about rising prices, according to new research shared first with Axios.
Why it matters: On-again, off-again tariffs, along with other policy shifts in Washington, are confounding not just auto companies, but car buyers, too.
- But amid record pent-up demand, many consumers are deciding there's no point in putting off their car-buying decisions any longer.
Driving the news: The findings are part of the latest quarterly survey by Santander Holdings USA, which aims to get a pulse on how economic conditions and future price uncertainty are impacting American households.
- While most middle-income consumers surveyed are worried about prices and feeling pinched by housing costs, they remain resilient, with three-quarters believing they are on the right financial track, Santander found.
Between the lines: The findings underscore why vehicle access is so important to families.
- "Our research finds consumers are taking proactive steps to secure what matters most, especially autos," says Betty Jotanovic, president of auto relationships at Santander Consumer USA. "While they may have to make certain trade-offs, households are focused on maintaining vehicle access and prioritizing it within their budgets."
Zoom in: Consumers are closely watching how future price uncertainty could affect their purchasing plans, and they are adjusting expectations accordingly, according to the survey, which was conducted by Morning Consult on behalf of Santander.
- 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 — and the first time in two years that prospective buyers outnumber those delaying a purchase.
- Nearly one in five (18%) expedited key purchases in Q2 amid future price uncertainty, with 41% of them buying a car.
Higher prices haven't scared them off; if anything, they've motivated buyers to act now.
- Half of prospective buyers say they are now more likely to take out an auto loan.
- 48% are more likely to purchase a used vehicle.
- 42% are more likely to transact in the next three months.
The big picture: Industry sales have been on a roller-coaster since President Trump launched his trade war against friends and foes alike.
- Vehicle sales surged in early 2025 as consumers raced to pre-empt tariffs and policy-driven price increases.
- As Trump began waffling on his trade policies, however, demand returned to normal.
- Now, with some of the uncertainty lifting, there's renewed interest among consumers to act fast.
What to watch: Look for more sales pitches like the one delivered last week by Tesla CEO Elon Musk during an earnings call with investors.
- Citing the government's plan to end EV tax credits on Sept. 30, and Tesla's own intention to pare back incentives, Musk urged consumers not to wait.
- "If you are in the U.S. and looking to buy a car, place your order now as we may not be able to guarantee delivery orders placed in the later part of August and beyond."
