Millennials Help Drive Used Car Loans

As the economy improves, rising income and increasing employment opportunities among 18 to 34 year olds, commonly known as “Millennials,” are driving a renewed interest in car ownership.  As Edmunds.com reports,” Millennials aged 25 to 34 buy luxury cars to a similar extent or more as older buyers with the same income.”

This trend also was recognized in a September 2012 Forbes article that stated, “Seven in 10 Millennials drive on a typical weekday. The competition to win the affinity of these 80 million Millennials is wide open and lucrative.” Furthermore, as Annalisa Bluhm of General Motors’ Chevrolet brand told Forbes, “Millennials expect high-tech gadgetry and fuel economy, wrapped in a sleek and sporty look. And if they can’t find it new, then they will purchase it used.”

This is good news for credit unions that want to drive used car loans. And a good way to reach out to Millennials may be through their parents who already have a great relationship with their credit union and can help influence the decisions made by their young adult sons and daughters who may be purchasing their first vehicle and applying for their first loan.

“There are signs that the economic factors supporting Millennial buying will remain in play,” states Edmunds.com. “The labor market recovery continues to make progress, with roughly 160,000 jobs added per month in 2013 (as of May 2013). Jobs and income growth will ease the student loan burden on Millennials, making car payments more feasible…these growth factors suggest more growth in car purchases to come from the youngest generation of drivers.”