Auto Loans Becoming More Popular Among Millennials and These Are Their 10 Favorite Cars Auto Loans Becoming More Popular Among Millennials and These Are Their 10 Favorite Cars
Younger people are increasingly interested in buying cars and taking out more auto loans, according to a new study by LendingTree. Auto Loans Becoming More Popular Among Millennials and These Are Their 10 Favorite Cars

Younger people are increasingly interested in buying cars according to a new study by LendingTree, with Millennials (those under 35 years of age) now representing an average of 33 percent of all requested auto loans through LendingTree’s marketplace.

LendingTree analyzed its auto loan requests within the past year and found there is a growing nationwide trend of young car buyers returning to the auto market. This is despite media reports and widely held beliefs that indicate Millennials represent a shrinking segment of the total car purchasing population. The share of Millennial auto loan requests has climbed from roughly 27 percent in early 2013 to about 34 percent in 2016.

“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 Doug Lebda, founder and CEO of LendingTree. “Although the share of Millennial auto loan requests is relatively lower in densely populated urban areas, the auto market appears to be enticing aging Millennials.”

Millennial auto loans average $14,825.34 while the loan amount average amongst those older than 35 is $17,938.74. Approximately 53.6 percent of Millennial auto loan requests in the past 12 months were for new vehicles and 46.4 percent of requests were designated for the purchase of used vehicles. For borrowers 35 years and older, 55.8 percent of requested auto loans were for the purchase of new vehicles and 44.2 percent for used, suggesting Millennials are slightly less likely to finance the purchase a new vehicle compared to borrowers 35 years and older.

>> Looking for a new car? Start by comparing financing.

In the study, LendingTree additionally looked at vehicle purchase requests within the past year and found these makes and models were the 10 most popular cars among Millennials. Vehicle model years were not assessed.

10. Toyota Camry

Detroit, MI, USA - January 13, 2015: Toyota Camry on display during the 2015 Detroit International Auto Show at the COBO Center in downtown Detroit.

9. Dodge Challenger

Geneva, Switzerland - March, 3rd, 2015: The presentation of Dodge Challenger SRT on the motor show. This vehicle is one of the most dynamic coupe vehicles in United States.

8. Chevrolet Malibu

Charlotte, NC, USA - November 20, 2014: Chevrolet Malibu sedan on display during the 2014 Charlotte International Auto Show at the Charlotte Convention Center.

7. Ford Mustang

Paris, France – October 2nd, 2014: Premiere of Ford Mustang at the Paris Motor Show in France. The new Mustang is available with petrol engines: 2,3-litre EcoBoost (310 HP), 3,7-litre V6 (300 HP) and 5-litre V8 (435 HP).

6. Honda Civic

Los Angeles, California, USA - November 21, 2013: Honda Civic Coupe car on display at the LA Auto Show.

5. Chevrolet Tahoe

Charlotte, NC, USA - November 20, 2014: Tahoe on display during the 2014 Charlotte International Auto Show at the Charlotte Convention Center.

4. Chevrolet Impala

New York, USA - March 23, 2016: Chevrolet Impala on display during the New York International Auto Show at the Jacob Javits Center.

3. Honda Accord

Scottsdale, United States - November 14, 2013: A photo of a brand new black 2013 Honda Accord sedan. The Accord is Honda's number one selling mid size sedan.

2. Dodge Charger

Detroit, MI, USA - January 12, 2015: Dodge Charger on display during the 2015 Detroit International Auto Show at the COBO Center in downtown Detroit.

1. Nissan Altima

Charlotte, NC, USA - November 20, 2014: Nissan Altima sedan on display during the 2014 Charlotte International Auto Show at the Charlotte Convention Center.

>> Don’t just take the loan offer at the dealership. Look for better financing options first!

Share on Facebook0Share on Google+0Tweet about this on Twitter2Share on LinkedIn3Pin on Pinterest0
Mike Ouyang

Mike Ouyang

Mike is a PR manager, writer, and content editor for LendingTree focused on creating informative and digestible financial content for the everyday consumer and reader. Mike graduated from College of Charleston and received his MBA from Winthrop University. Follow him on Twitter @MikeOuyangTweet