Millennials are starting to buy cars again – or at least their share of auto loan requests is climbing, per a recent report from LendingTree. Based on an analysis of auto purchase loan requests submitted in the US’ top 50 cities, LendingTree reveals that 34% came from Millennials (18-34), up from about 27% in early 2013.
The top 5 cities in terms of Millennials’ share of auto loan requests are:
- Memphis, TN (42%);
- Milwaukee, WI (40.7%);
- St. Louis, MO (37.9%);
- Minneapolis, MN (35.9%); and
- Houston, TX (35.5%).
(See the above chart for the list of the top 10.)
On the other end of the spectrum, Hartford CT had the smallest share of requests come from Millennials, at 22.9%. All of the bottom 10 cities saw fewer than 3 in 10 requests come from the 18-34 demographic.
It’s worth noting that auto loans average offered to Millennials are smaller than to other adults, with this true across the top and bottom 10 cities. Nationally, Millennials’ auto loans averaged $14,825, versus $17,939 for applicants aged 35 and up.
Older adults are also slightly more likely to want to finance the purchase of a new vehicle: 55.8% of their requests were for new vehicle purchases, compared to 53.6% of Millennials auto purchase loan requests.
LendingTree previously published a similar analysis of mortgage requests, available here.
For more on youth and financial services, see MarketingCharts’ latest report, Marketing Financial Services to Millennials.