The top 10 cars for Generation Y, according to auto loan data
Millennials are buying cars, but they have remarkably different tastes than their parents.
Auto loan requests from consumers 35 years old and under have increased to about 34% of the overall market in 2016 from 27% in 2013, according to a report by Lending Tree TREE, +2.38% an online lending exchange. Millennial loan requests hit their peak in July 2014 at nearly 35% of the market, and the combination of falling unemployment and interest rates has helped loan requests return to that level, the report found.
Overall car sales have experienced continued growth, with a record-breaking 17.5 million cars sold in 2015 and 2016 sales on pace to hit 17.4 million by the end of the year. SUVs have become a major driver of these sales as manufacturers have increased the variety of offerings in that segment. One-third of sales last year were SUVs, and that number is expected to jump to 40% by 2020, according to Ford, sales estimates.
However, the most recent auto loan data suggest millennial buyers aren’t as hot on large cars as older drivers, preferring midsize sedans and muscle cars instead. The main reason for these preferences could be the more generous sale incentives manufacturers are instituting for these less-popular cars, says Jack Nerad, executive market analyst and executive editorial director at Kelley Blue Book.
Other young buyers may be taking advantage of low prices to own their dream car. “The muscle cars on the list are still fairly practical and affordable, making the muscle car dream a reality for some,” said Rick Finch, senior vice president of Autos & Insurance at Lending Tree.
Whether it is for looks or price, these are the top 10 most popular cars among Generation Y buyers, according to data from auto loan requests for both new and used vehicles:
Click below to read the full article: