A new study finds millennials are slowly purchasing more vehicles, even as ride and car sharing services become more popular. According to LendingTree, drivers between 18 and 34-years accounted for 33% of the more than one million auto-loan requests it received during the first quarter of 2016. That compares with roughly 27% in the same period of 2013.
The results stand in contrast to prior auto industry rhetoric, which contends millennials are not interested in purchasing their own vehicles. LendingTree says improving employment numbers, lower interest rates and low gas prices are driving the millennials’ renewed interest in purchasing a new car or truck.
For those ages 18 to 34, LendingTree said the average auto-loan request was $14,825, about $3,000 lower than the average amount sought by those 35 and older. Millennials’ preference for less-costly used vehicles is likely driving this trend. According to the study, about 46% of millennial requests last year were for used vehicles, compared with 44% for older drivers.