Auto Loans are Gaining Popularity Among Millennials
On average, 33% of all auto loan requests through
"With unemployment among millennials improving, coupled with lower interest rates and low gas prices, the share of millennial auto loan requests is on the rise," said
Despite the widely-held belief that millennials will become an increasingly smaller segment of the total car-buying population, the share of auto loan requests from millennials has been increasing in recent years. The share of millennial auto loan requests has climbed from roughly 27 percent in early 2013 to about 34 percent in 2016, suggesting a return of younger buyers to the car market.
Metropolitan Statistical Area |
% of Total Car Buyers (Under 35) |
Average Offered Loan Amount (Under 35) |
% of Total Car Buyers (35+) |
Average Offered Loan Amount (35+) |
Total Average Loan Amount |
|
41.98% |
|
58.02% |
|
|
|
40.68% |
|
59.32% |
|
|
|
37.88% |
|
62.12% |
|
|
|
35.91% |
|
64.09% |
|
|
|
35.51% |
|
64.49% |
|
|
|
35.25% |
|
64.75% |
|
|
|
35.06% |
|
64.94% |
|
|
|
34.50% |
|
65.50% |
|
|
|
34.29% |
|
65.71% |
|
|
|
34.00% |
|
66.00% |
|
|
Metropolitan Statistical Area |
% of Total Car Buyers (Under 35) |
Average Offered Loan Amount (Under 35) |
% of Total Car Buyers (35+) |
Average Offered Loan Amount (35+) |
Total Average Loan Amount |
|
22.91% |
|
77.09% |
|
|
|
26.09% |
|
73.91% |
|
|
|
26.65% |
|
73.35% |
|
|
Providence- |
26.88% |
|
73.12% |
|
|
|
27.04% |
|
72.96% |
|
|
|
27.49% |
|
72.51% |
|
|
|
29.20% |
|
70.80% |
|
|
|
29.24% |
|
70.76% |
|
|
|
29.32% |
|
70.68% |
|
|
|
29.55% |
|
70.45% |
|
|
Additionally,
Most Popular Cars Requested by Loan-Seeking Millennials | |
Rank |
Make/Model |
1 |
|
2 |
Dodge Charger |
3 |
Honda Accord |
4 |
Chevrolet Impala |
5 |
Chevrolet Tahoe |
6 |
Honda Civic |
7 |
Ford Mustang |
8 |
Chevrolet Malibu |
9 |
Dodge Challenger |
10 |
Toyota Camry |
Approximately 53.6% of millennial auto loan requests in the past 12 months were for new vehicles and 46.4% of requests were designated for the purchase of used vehicles. For borrowers 35 years and older, 55.8% of requests were for the purchase of new vehicles and 44.2% for used, suggesting millennials are slightly less likely to finance the purchase a new vehicle compared to borrowers 35 years and older.
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Megan.Greuling@LendingTree.com
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SOURCE
News Provided by Acquire Media