Recently, finance experts have been concerned that members of the Millennial generation might be put off by the idea of financing a car because of other financial obligations. However, a new survey – showing that Millennials are more than willing to take out auto loans – should soothe the industry.
The reason why car makers were worried Millennials might not want to take out an auto loan is that they have record-high levels of student loan debt to pay back. This has caused many of them to put off buying or renting a home. The industry worried this would also lead them to avoid buying a car.
But the survey by FICO shows that’s just not the case. In fact, if they had to, nearly 20 percent of Millennials said that they would put a new car on a credit card if they had to – no matter what the interest rate.
What the survey showed was that with much of the generation, living with their parents well into their 20s, a new car is one of the few symbols of adulthood and independence they have. Therefore, buying a car is very important to them.
This means that dealers should try to target this generation with aggressive auto loans, because they will be more than willing to sign on the dotted line.
To find out how much an auto loan would cost you you can use our free auto loan calculator.