Despite persistent economic pressures, middle-income Americans are entering 2026 with a sense of optimism, according to the latest Paths to Financial Prosperity study from Santander US. The Q4 2025 survey reveals that financial confidence has reached a three-year high, with 79% of households believing they are on the right track to achieve financial prosperity. This steadfast outlook is bolstered by strong job security, a growing ability to manage high prices, and an increasing willingness to adopt new technologies like Artificial Intelligence (AI) to navigate major financial decisions.
The study, which surveyed over 2,100 middle-income consumers, shows that many consumers who were recently struggling are now being to adapt. A significant majority (85%) believe they can adjust if costs continue to rise, and 82% report having enough savings to cover a small emergency. This confidence is translating into proactive financial management, with half of middle-income Americans now taking action to benefit from higher yields on their savings accounts—a new high in the survey’s history.
Auto Demand Remains a Priority
One of the most striking findings is the unwavering importance placed on vehicle access. For the 80% of middle-income Americans who rely on a vehicle to get to work, mobility is non-negotiable. This necessity is fueling elevated demand in the auto market, with consumers prioritizing vehicle ownership over other discretionary spending. Three out of four households state they are willing to sacrifice other budgetary items to maintain access to a vehicle, a figure that has climbed 11 percentage points in just one year.
“After several years of pent-up demand, car-buying activity accelerated in 2025,” said Betty Jotanovic, President of Auto Relationships at Santander Consumer USA. “Momentum continued in Q4, when auto dealership visits rose by 8 percentage points and test drives rose by 7 percentage points. These datapoints underscore how purchase consideration is translating into tangible action.”
This demand is increasingly steering toward the used car lot. As consumers remain cost-conscious, interest in pre-owned vehicles is gaining significant traction. A full 84% of recent car buyers considered a used vehicle, while 81% of prospective 2026 buyers are doing the same. Of those potential buyers, two-thirds say they are likely to ultimately purchase used, signaling a sustained and strategic shift in shopping behavior.
AI Emerges as a Trusted Co-Pilot in Car Buying
As consumers navigate the complexities of the auto market, AI is rapidly moving from a novel concept to a practical tool. The study reveals a high level of comfort and adoption, particularly in the car-buying journey. Nearly half (49%) of middle-income consumers who shopped for cars online have already used AI to help them understand their options.
Looking ahead, the trend is set to accelerate. An overwhelming 80% of prospective car buyers say they would be comfortable using AI to explore and understand auto financing. This comfort extends across the research process, from comparing models and pricing to deciphering loan terms. AI is quickly becoming a trusted digital resource at critical decision points, especially for younger generations who report the highest levels of optimism about its benefits.
This acceptance is not limited to car buying. Nine in ten middle-income households believe AI has the potential to support their broader pursuit of financial prosperity, and 60% expect to see those benefits within the next 12 months. They see AI as a tool that can help them learn new skills, manage their money more effectively, and make smarter investment decisions.
A Pragmatic Approach to Financial Health
The survey also sheds light on housing trends, noting that renting continues to be viewed as a practical and flexible path to prosperity. An increasing share of renters (51%) say they could afford to buy a home but actively choose to rent, citing benefits like residential flexibility (83%) and financial flexibility (74%).
Overall, the Santander study portrays a middle-income demographic that has weathered economic storms by becoming more pragmatic, resilient, and resourceful. They are actively seeking better returns on their savings, prioritizing essential needs like transportation, and smartly leveraging technology to demystify complex financial products. As they look toward the rest of 2026, their confidence appears well-founded, built on a disciplined approach to managing their financial lives in an ever-changing world.
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