IRVINE, Calif. — New research from the Kelley Blue Book Market Intelligence Group revealed today that more vehicle buyers are apparently turning to used units, as well as tending to pay in cash rather than financing their purchases.

The study findings showed some startling vehicle buyer sentiment about potential purchasing and financing plans.

Stemming from what analysts believe to be unsteady economic conditions, the survey determined most in-market shoppers are planning to spend a relatively small amount of money on their next vehicle purchase. Additionally, KBB found these same consumers are more likely to buy a used vehicle versus a new unit.

Furthermore and most relevant to auto finance companies, more than one-third of in-market vehicle shoppers involved in the survey say they plan to pay the entire cost of their next vehicle purchase in cash, and they are not influenced by incentive offers.

KBB indicated 74 percent of the individuals surveyed plan to purchase a vehicle within the next six months. Of that cluster, more consumers emphasized they are in the market for a used vehicle (67 percent) rather than a new one (33 percent).

Again, returning to what could pique the interest of finance companies, KBB found that 42 percent of used-vehicle shoppers and 20 percent of new-vehicle shoppers said they plan to pay the entire cost of their next vehicle in cash.

The study also shed light on what these potential buyers are willing to spend. A total of 62 percent of the participating used-car shoppers said they plan to spend less than $15,000. Of the probable new-unit buyers, exactly half — 50 percent — plan to acquire a new vehicle that costs $25,000 or less.

As much as incentives appear to be a tool to attract buyers, the KBB study shows how little impact they might have.

A strong majority of used-vehicle shoppers, 82 percent, in fact, and 51 percent of possible new-vehicle buyers, stressed that incentive offers have no effect on the timing of their next vehicle purchase. Similar rates of used- and new-vehicle shoppers — 81 percent and 48 percent, respectively — also indicated the availability of incentives has no effect on their specific vehicle choice, including make or model.

"In-market car shoppers are taking a decidedly conservative approach to car buying right now, which we think can be directly attributed to low consumer confidence in the current economy," explained James Bell, executive market analyst for Kelley Blue Book's Kbb.com. "It seems people are re-assessing their financial situations and deciding to spend less, buy used and pay more often with cash.

"Incentives have loosened their tight grip on the American consumer, with more people deciding to purchase what they can truly afford versus what they can get with over-extended credit lines and incentive offers on the hood from manufacturers," he added.

The study also delved into a line of questioning for in-market buyers who still intend to finance their next vehicle purchase.

Not surprisingly, zero-percent financing was listed as the most appealing incentive offer at 30 percent, followed by low monthly payments at 21 percent.

Furthermore, KBB found women were twice as likely to find low monthly payments the most appealing incentive offer when compared to men (32 percent of women versus 16 percent of men).

Study findings revealed that by far the most popular loan term was 60 months, with 42 percent of respondents indicating they prefer to finance for five years. Second-most popular was 36 months at 21 percent, followed by 48 months at 20 percent. Analysts mentioned that only 11 percent of participants preferred 72 months and just 5 percent cited 24 months.

How these potential buyers might acquire their vehicle financing also varied greatly, according to the study.

KBB indicated 57 percent of total respondents intend to research vehicle financing options online. Meanwhile, 50 percent plan to obtain pre-approval through a bank or credit union.

Quite noteworthy was the study results showing only 34 percent of buyers surveyed said they plan to obtain financing at the dealership at the time of purchase.

The top two reasons why potential buyers picked to have their financing through a bank or credit union included control in negotiations (44 percent) and low interest rate (34 percent). If an in-market shopper does decide to go with dealership financing, the primary reasons tend to be convenience (54 percent) and low interest rate (32 percent).

Which vehicles these in-market buyers might select apparently is still up for debate.

Though the average shopper has three vehicles in the consideration set, the survey found 83 percent of all survey participants said they remain undecided on the make and model of their next vehicle purchase.

Analysts indicated 45 percent of younger shoppers, individuals age 34 and younger, are more open to buying either a domestic or import brand. However, shoppers age 55 and older are more likely to decide upon either a domestic brand or an import brand. In this age demographic, 39 percent are opting for a domestic nameplate, while 32 percent are going with an import.

No matter whether the in-market buyer is looking for a used or new vehicle, two factors tied for the top priority when considering which unit to purchase. The survey determined 33 percent of those questioned went either for price or the combination of durability, reliability and quality. Coming next at a distant 12 percent was brand.

While "no-haggle pricing" is sometimes included in marketing campaigns, KBB found that 62 percent of those surveyed feel that negotiating is a crucial part of the vehicle-buying process. This group prefers negotiating over having a single set price.

That percentage is even higher when looking only at in-market buyers who are age 34 and younger. A total of 73 percent of that demographic included in the study said they believe negotiating is a crucial part of the process.

When that negotiation begins, KBB learned that 40 percent of respondents use the average transaction price — the New Car Blue Book Value — as the starting point. Another 32 percent of those polled start to negotiate with the dealer invoice price, while only 9 percent of shoppers indicate they begin negotiations with the manufacturer's suggested retail price.

In addition, KBB determined 38 percent of consumers questioned said that if they pay the average transaction price, they feel they have gotten a good deal.

Analysts noted this Kelley Blue Book Market Intelligence data is based on a survey of 338 in-market car shoppers at Kbb.com. The survey was conducted during a three-day span that concluded June 21.