Source: Market Watch Personal Finance
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, +1.49%
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
F, -0.63%
sales estimates.
Read more: Death of the sedan: Americans have fallen out of love with small cars
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:
The top four cars by auto loan requests are midsize sedans, which is a shrinking segment in the overall market, dropping 0.4% in sales — including rental and other fleet sales — from the first quarter of 2015 to the first quarter of 2016, according to data from Edmunds.com. Leading the pack is the Nissan
7201, +0.66%
Altima, an affordable offering — the base model starts at $22,500 — with large interior space.
“Nissan focus group research and showroom experience has shown the Altima appeals to a wide swath of the buying public,” said Nissan spokesman Dan Bedore in an email. The model is especially attractive to millennials because of its fuel economy and technology features, he added.
A little pricier than the Altima — the starting manufacturer’s suggested retail price is $27,995 — the Dodge Charger is another midsize sedan popular among millennial buyers, according to Lending Tree. Current incentives for the Charger include up to $2,500 cash back for customers who buy.
The Charger has made a few pop culture appearances recently, including serving as Uber’s “storm trooper” cars in a promotion for “Star Wars: The Force Awakens” in September.
The Dodge brand has begun to gain more traction with millennial buyers looking for “capability and power,” said Fiat Chrysler Automobiles
FCAU, -1.05%
spokesman Tim Kunkiskis in an email.
The Honda
7267, +1.82%
Accord and its smaller cousin, the Civic, have been perennial favorites among younger buyers. The models have been the two top-selling cars among shoppers under the age of 35 from 2004 to 2014, according to data from industry research firm IHS Automotive.
The midsize Accord starts at $22,205 and has a fuel economy of 37 miles per gallon on the highway. The Accord and the Civic’s continued popularity is a positive sign for Honda’s long-term business, said James Jenkins, a Honda spokesman, in an email.
Previously a rental fleet staple, the Chevrolet Impala’s redesign in the 2014 model year — which earned it the “most improved” award from Consumer Reports — may have helped its popularity among younger buyers.
The Impala starts at $27,300 and current incentives include $1,000 cash back and a 2.9% annual percentage rate for 60 months.
“The role of millennials can’t be overstated,” said General Motors
GM, -1.16%
spokesman Jim Cain, in an email, adding that buyers under the age of 34 account for 19% of the company’s sales, up 5 percentage points from 2010.
The Tahoe is the only SUV to break the top 10, and is a far cry from the small SUVs that have become popular among downsizing baby boomers and Generation X buyers. It is also one of the most expensive cars on the list, starting at $47,000.
Additionally, the incentives for the Tahoe aren’t as attractive as the cash back deals on some of the midsize sedans, with only 2.9% APR for 60 months currently offered by GM.
“The Tahoe is most likely perceived as a masculine take on a family vehicle for millennial parents,” said Finch. “It is a relatively affordable and reliable full-size SUV.”
The compact Civic follows in the Accord’s footsteps as a popular choice for young buyers with a lower price point. With a manufacturer’s suggested retail price of $18,640, the Civic is one of the cheapest vehicles on the list.
The Mustang is one of two muscle cars to break the top 10, despite the segment’s poor performance in crash ratings. However, the Mustang has been popular with millennial buyers because of its EcoBoost engine option, which provides better fuel economy, and has a “cooler [exterior] package,” says Erich Merkle, a Ford spokesman.
The model has been especially popular in warmer-climate states where it can be used year-round, Merkle says.
The Chevrolet Malibu is a less-expensive offering in the midsize segment than the Impala, with even more attractive incentives. Current deals include $1,500 cash back and 1.9% APR for 60 months.
Along with prices, the brand has been working to make the design attractive to a younger demographic as well. “Chevrolet has been aggressively introducing all-new designs for key vehicles like the Malibu,” Cain said.
The second muscle car on the list, the Challenger is a lot of car for a low price when incentives are factored in, says KBB’s Nerad. The Challenger starts at $26,995, and Dodge is offering up to $2,000 cash back in incentives.
The Challenger SRT Hellcat model has the highest horsepower in the segment at 707.
The Camry is consistently one of the best-selling cars in the U.S., according to sales data from The Wall Street Journal. The low price — a manufacturer’s suggested retail price of $23,070 — and fuel efficiency of up about 35 miles per gallon on the highway also make it attractive to budget-conscious millennial buyers.
Its inclusion in the Lending Tree rankings is “proof positive” that millennials see great value in Camry’s modern styling and numerous standard amenities, said Toyota spokesman Nate Martinez in an email.
The Camry is consistently one of the best-selling cars in the U.S., according to sales data from The Wall Street Journal. The low price — a manufacturer’s suggested retail price of $23,070 — and fuel efficiency of up about 35 miles per gallon on the highway also make it attractive to budget-conscious millennial buyers.
Its inclusion in the Lending Tree rankings is “proof positive” that millennials see great value in Camry’s modern styling and numerous standard amenities, said Toyota spokesman Nate Martinez in an email.
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, +1.49%
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
F, -0.63%
sales estimates.
Read more: Death of the sedan: Americans have fallen out of love with small cars
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:
The top four cars by auto loan requests are midsize sedans, which is a shrinking segment in the overall market, dropping 0.4% in sales — including rental and other fleet sales — from the first quarter of 2015 to the first quarter of 2016, according to data from Edmunds.com. Leading the pack is the Nissan
7201, +0.66%
Altima, an affordable offering — the base model starts at $22,500 — with large interior space.
“Nissan focus group research and showroom experience has shown the Altima appeals to a wide swath of the buying public,” said Nissan spokesman Dan Bedore in an email. The model is especially attractive to millennials because of its fuel economy and technology features, he added.
A little pricier than the Altima — the starting manufacturer’s suggested retail price is $27,995 — the Dodge Charger is another midsize sedan popular among millennial buyers, according to Lending Tree. Current incentives for the Charger include up to $2,500 cash back for customers who buy.
The Charger has made a few pop culture appearances recently, including serving as Uber’s “storm trooper” cars in a promotion for “Star Wars: The Force Awakens” in September.
The Dodge brand has begun to gain more traction with millennial buyers looking for “capability and power,” said Fiat Chrysler Automobiles
FCAU, -1.05%
spokesman Tim Kunkiskis in an email.
The Honda
7267, +1.82%
Accord and its smaller cousin, the Civic, have been perennial favorites among younger buyers. The models have been the two top-selling cars among shoppers under the age of 35 from 2004 to 2014, according to data from industry research firm IHS Automotive.
The midsize Accord starts at $22,205 and has a fuel economy of 37 miles per gallon on the highway. The Accord and the Civic’s continued popularity is a positive sign for Honda’s long-term business, said James Jenkins, a Honda spokesman, in an email.
Previously a rental fleet staple, the Chevrolet Impala’s redesign in the 2014 model year — which earned it the “most improved” award from Consumer Reports — may have helped its popularity among younger buyers.
The Impala starts at $27,300 and current incentives include $1,000 cash back and a 2.9% annual percentage rate for 60 months.
“The role of millennials can’t be overstated,” said General Motors
GM, -1.16%
spokesman Jim Cain, in an email, adding that buyers under the age of 34 account for 19% of the company’s sales, up 5 percentage points from 2010.
The Tahoe is the only SUV to break the top 10, and is a far cry from the small SUVs that have become popular among downsizing baby boomers and Generation X buyers. It is also one of the most expensive cars on the list, starting at $47,000.
Additionally, the incentives for the Tahoe aren’t as attractive as the cash back deals on some of the midsize sedans, with only 2.9% APR for 60 months currently offered by GM.
“The Tahoe is most likely perceived as a masculine take on a family vehicle for millennial parents,” said Finch. “It is a relatively affordable and reliable full-size SUV.”
The compact Civic follows in the Accord’s footsteps as a popular choice for young buyers with a lower price point. With a manufacturer’s suggested retail price of $18,640, the Civic is one of the cheapest vehicles on the list.
The Mustang is one of two muscle cars to break the top 10, despite the segment’s poor performance in crash ratings. However, the Mustang has been popular with millennial buyers because of its EcoBoost engine option, which provides better fuel economy, and has a “cooler [exterior] package,” says Erich Merkle, a Ford spokesman.
The model has been especially popular in warmer-climate states where it can be used year-round, Merkle says.
The Chevrolet Malibu is a less-expensive offering in the midsize segment than the Impala, with even more attractive incentives. Current deals include $1,500 cash back and 1.9% APR for 60 months.
Along with prices, the brand has been working to make the design attractive to a younger demographic as well. “Chevrolet has been aggressively introducing all-new designs for key vehicles like the Malibu,” Cain said.
The second muscle car on the list, the Challenger is a lot of car for a low price when incentives are factored in, says KBB’s Nerad. The Challenger starts at $26,995, and Dodge is offering up to $2,000 cash back in incentives.
The Challenger SRT Hellcat model has the highest horsepower in the segment at 707.
The Camry is consistently one of the best-selling cars in the U.S., according to sales data from The Wall Street Journal. The low price — a manufacturer’s suggested retail price of $23,070 — and fuel efficiency of up about 35 miles per gallon on the highway also make it attractive to budget-conscious millennial buyers.
Its inclusion in the Lending Tree rankings is “proof positive” that millennials see great value in Camry’s modern styling and numerous standard amenities, said Toyota spokesman Nate Martinez in an email.
The Camry is consistently one of the best-selling cars in the U.S., according to sales data from The Wall Street Journal. The low price — a manufacturer’s suggested retail price of $23,070 — and fuel efficiency of up about 35 miles per gallon on the highway also make it attractive to budget-conscious millennial buyers.
Its inclusion in the Lending Tree rankings is “proof positive” that millennials see great value in Camry’s modern styling and numerous standard amenities, said Toyota spokesman Nate Martinez in an email.
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, +1.49%
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
F, -0.59%
sales estimates.
Read more: Death of the sedan: Americans have fallen out of love with small cars
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:
The top four cars by auto loan requests are midsize sedans, which is a shrinking segment in the overall market, dropping 0.4% in sales — including rental and other fleet sales — from the first quarter of 2015 to the first quarter of 2016, according to data from Edmunds.com. Leading the pack is the Nissan
7201, +0.66%
Altima, an affordable offering — the base model starts at $22,500 — with large interior space.
“Nissan focus group research and showroom experience has shown the Altima appeals to a wide swath of the buying public,” said Nissan spokesman Dan Bedore in an email. The model is especially attractive to millennials because of its fuel economy and technology features, he added.
A little pricier than the Altima — the starting manufacturer’s suggested retail price is $27,995 — the Dodge Charger is another midsize sedan popular among millennial buyers, according to Lending Tree. Current incentives for the Charger include up to $2,500 cash back for customers who buy.
The Charger has made a few pop culture appearances recently, including serving as Uber’s “storm trooper” cars in a promotion for “Star Wars: The Force Awakens” in September.
The Dodge brand has begun to gain more traction with millennial buyers looking for “capability and power,” said Fiat Chrysler Automobiles
FCAU, -1.12%
spokesman Tim Kunkiskis in an email.
The Honda
7267, +1.82%
Accord and its smaller cousin, the Civic, have been perennial favorites among younger buyers. The models have been the two top-selling cars among shoppers under the age of 35 from 2004 to 2014, according to data from industry research firm IHS Automotive.
The midsize Accord starts at $22,205 and has a fuel economy of 37 miles per gallon on the highway. The Accord and the Civic’s continued popularity is a positive sign for Honda’s long-term business, said James Jenkins, a Honda spokesman, in an email.
Previously a rental fleet staple, the Chevrolet Impala’s redesign in the 2014 model year — which earned it the “most improved” award from Consumer Reports — may have helped its popularity among younger buyers.
The Impala starts at $27,300 and current incentives include $1,000 cash back and a 2.9% annual percentage rate for 60 months.
“The role of millennials can’t be overstated,” said General Motors
GM, -1.11%
spokesman Jim Cain, in an email, adding that buyers under the age of 34 account for 19% of the company’s sales, up 5 percentage points from 2010.
The Tahoe is the only SUV to break the top 10, and is a far cry from the small SUVs that have become popular among downsizing baby boomers and Generation X buyers. It is also one of the most expensive cars on the list, starting at $47,000.
Additionally, the incentives for the Tahoe aren’t as attractive as the cash back deals on some of the midsize sedans, with only 2.9% APR for 60 months currently offered by GM.
“The Tahoe is most likely perceived as a masculine take on a family vehicle for millennial parents,” said Finch. “It is a relatively affordable and reliable full-size SUV.”
The compact Civic follows in the Accord’s footsteps as a popular choice for young buyers with a lower price point. With a manufacturer’s suggested retail price of $18,640, the Civic is one of the cheapest vehicles on the list.
The Mustang is one of two muscle cars to break the top 10, despite the segment’s poor performance in crash ratings. However, the Mustang has been popular with millennial buyers because of its EcoBoost engine option, which provides better fuel economy, and has a “cooler [exterior] package,” says Erich Merkle, a Ford spokesman.
The model has been especially popular in warmer-climate states where it can be used year-round, Merkle says.
The Chevrolet Malibu is a less-expensive offering in the midsize segment than the Impala, with even more attractive incentives. Current deals include $1,500 cash back and 1.9% APR for 60 months.
Along with prices, the brand has been working to make the design attractive to a younger demographic as well. “Chevrolet has been aggressively introducing all-new designs for key vehicles like the Malibu,” Cain said.
The second muscle car on the list, the Challenger is a lot of car for a low price when incentives are factored in, says KBB’s Nerad. The Challenger starts at $26,995, and Dodge is offering up to $2,000 cash back in incentives.
The Challenger SRT Hellcat model has the highest horsepower in the segment at 707.
The Camry is consistently one of the best-selling cars in the U.S., according to sales data from The Wall Street Journal. The low price — a manufacturer’s suggested retail price of $23,070 — and fuel efficiency of up about 35 miles per gallon on the highway also make it attractive to budget-conscious millennial buyers.
Its inclusion in the Lending Tree rankings is “proof positive” that millennials see great value in Camry’s modern styling and numerous standard amenities, said Toyota spokesman Nate Martinez in an email.
The Camry is consistently one of the best-selling cars in the U.S., according to sales data from The Wall Street Journal. The low price — a manufacturer’s suggested retail price of $23,070 — and fuel efficiency of up about 35 miles per gallon on the highway also make it attractive to budget-conscious millennial buyers.
Its inclusion in the Lending Tree rankings is “proof positive” that millennials see great value in Camry’s modern styling and numerous standard amenities, said Toyota spokesman Nate Martinez in an email.
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, +1.49%
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
F, -0.78%
sales estimates.
Read more: Death of the sedan: Americans have fallen out of love with small cars
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:
The top four cars by auto loan requests are midsize sedans, which is a shrinking segment in the overall market, dropping 0.4% in sales — including rental and other fleet sales — from the first quarter of 2015 to the first quarter of 2016, according to data from Edmunds.com. Leading the pack is the Nissan
7201, +0.66%
Altima, an affordable offering — the base model starts at $22,500 — with large interior space.
“Nissan focus group research and showroom experience has shown the Altima appeals to a wide swath of the buying public,” said Nissan spokesman Dan Bedore in an email. The model is especially attractive to millennials because of its fuel economy and technology features, he added.
A little pricier than the Altima — the starting manufacturer’s suggested retail price is $27,995 — the Dodge Charger is another midsize sedan popular among millennial buyers, according to Lending Tree. Current incentives for the Charger include up to $2,500 cash back for customers who buy.
The Charger has made a few pop culture appearances recently, including serving as Uber’s “storm trooper” cars in a promotion for “Star Wars: The Force Awakens” in September.
The Dodge brand has begun to gain more traction with millennial buyers looking for “capability and power,” said Fiat Chrysler Automobiles
FCAU, -0.98%
spokesman Tim Kunkiskis in an email.
The Honda
7267, +1.82%
Accord and its smaller cousin, the Civic, have been perennial favorites among younger buyers. The models have been the two top-selling cars among shoppers under the age of 35 from 2004 to 2014, according to data from industry research firm IHS Automotive.
The midsize Accord starts at $22,205 and has a fuel economy of 37 miles per gallon on the highway. The Accord and the Civic’s continued popularity is a positive sign for Honda’s long-term business, said James Jenkins, a Honda spokesman, in an email.
Previously a rental fleet staple, the Chevrolet Impala’s redesign in the 2014 model year — which earned it the “most improved” award from Consumer Reports — may have helped its popularity among younger buyers.
The Impala starts at $27,300 and current incentives include $1,000 cash back and a 2.9% annual percentage rate for 60 months.
“The role of millennials can’t be overstated,” said General Motors
GM, -1.20%
spokesman Jim Cain, in an email, adding that buyers under the age of 34 account for 19% of the company’s sales, up 5 percentage points from 2010.
The Tahoe is the only SUV to break the top 10, and is a far cry from the small SUVs that have become popular among downsizing baby boomers and Generation X buyers. It is also one of the most expensive cars on the list, starting at $47,000.
Additionally, the incentives for the Tahoe aren’t as attractive as the cash back deals on some of the midsize sedans, with only 2.9% APR for 60 months currently offered by GM.
“The Tahoe is most likely perceived as a masculine take on a family vehicle for millennial parents,” said Finch. “It is a relatively affordable and reliable full-size SUV.”
The compact Civic follows in the Accord’s footsteps as a popular choice for young buyers with a lower price point. With a manufacturer’s suggested retail price of $18,640, the Civic is one of the cheapest vehicles on the list.
The Mustang is one of two muscle cars to break the top 10, despite the segment’s poor performance in crash ratings. However, the Mustang has been popular with millennial buyers because of its EcoBoost engine option, which provides better fuel economy, and has a “cooler [exterior] package,” says Erich Merkle, a Ford spokesman.
The model has been especially popular in warmer-climate states where it can be used year-round, Merkle says.
The Chevrolet Malibu is a less-expensive offering in the midsize segment than the Impala, with even more attractive incentives. Current deals include $1,500 cash back and 1.9% APR for 60 months.
Along with prices, the brand has been working to make the design attractive to a younger demographic as well. “Chevrolet has been aggressively introducing all-new designs for key vehicles like the Malibu,” Cain said.
The second muscle car on the list, the Challenger is a lot of car for a low price when incentives are factored in, says KBB’s Nerad. The Challenger starts at $26,995, and Dodge is offering up to $2,000 cash back in incentives.
The Challenger SRT Hellcat model has the highest horsepower in the segment at 707.
The Camry is consistently one of the best-selling cars in the U.S., according to sales data from The Wall Street Journal. The low price — a manufacturer’s suggested retail price of $23,070 — and fuel efficiency of up about 35 miles per gallon on the highway also make it attractive to budget-conscious millennial buyers.
Its inclusion in the Lending Tree rankings is “proof positive” that millennials see great value in Camry’s modern styling and numerous standard amenities, said Toyota spokesman Nate Martinez in an email.
The Camry is consistently one of the best-selling cars in the U.S., according to sales data from The Wall Street Journal. The low price — a manufacturer’s suggested retail price of $23,070 — and fuel efficiency of up about 35 miles per gallon on the highway also make it attractive to budget-conscious millennial buyers.
Its inclusion in the Lending Tree rankings is “proof positive” that millennials see great value in Camry’s modern styling and numerous standard amenities, said Toyota spokesman Nate Martinez in an email.
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, +1.49%
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
F, -0.63%
sales estimates.
Read more: Death of the sedan: Americans have fallen out of love with small cars
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:
The top four cars by auto loan requests are midsize sedans, which is a shrinking segment in the overall market, dropping 0.4% in sales — including rental and other fleet sales — from the first quarter of 2015 to the first quarter of 2016, according to data from Edmunds.com. Leading the pack is the Nissan
7201, +0.66%
Altima, an affordable offering — the base model starts at $22,500 — with large interior space.
“Nissan focus group research and showroom experience has shown the Altima appeals to a wide swath of the buying public,” said Nissan spokesman Dan Bedore in an email. The model is especially attractive to millennials because of its fuel economy and technology features, he added.
A little pricier than the Altima — the starting manufacturer’s suggested retail price is $27,995 — the Dodge Charger is another midsize sedan popular among millennial buyers, according to Lending Tree. Current incentives for the Charger include up to $2,500 cash back for customers who buy.
The Charger has made a few pop culture appearances recently, including serving as Uber’s “storm trooper” cars in a promotion for “Star Wars: The Force Awakens” in September.
The Dodge brand has begun to gain more traction with millennial buyers looking for “capability and power,” said Fiat Chrysler Automobiles
FCAU, -1.05%
spokesman Tim Kunkiskis in an email.
The Honda
7267, +1.82%
Accord and its smaller cousin, the Civic, have been perennial favorites among younger buyers. The models have been the two top-selling cars among shoppers under the age of 35 from 2004 to 2014, according to data from industry research firm IHS Automotive.
The midsize Accord starts at $22,205 and has a fuel economy of 37 miles per gallon on the highway. The Accord and the Civic’s continued popularity is a positive sign for Honda’s long-term business, said James Jenkins, a Honda spokesman, in an email.
Previously a rental fleet staple, the Chevrolet Impala’s redesign in the 2014 model year — which earned it the “most improved” award from Consumer Reports — may have helped its popularity among younger buyers.
The Impala starts at $27,300 and current incentives include $1,000 cash back and a 2.9% annual percentage rate for 60 months.
“The role of millennials can’t be overstated,” said General Motors
GM, -1.15%
spokesman Jim Cain, in an email, adding that buyers under the age of 34 account for 19% of the company’s sales, up 5 percentage points from 2010.
The Tahoe is the only SUV to break the top 10, and is a far cry from the small SUVs that have become popular among downsizing baby boomers and Generation X buyers. It is also one of the most expensive cars on the list, starting at $47,000.
Additionally, the incentives for the Tahoe aren’t as attractive as the cash back deals on some of the midsize sedans, with only 2.9% APR for 60 months currently offered by GM.
“The Tahoe is most likely perceived as a masculine take on a family vehicle for millennial parents,” said Finch. “It is a relatively affordable and reliable full-size SUV.”
The compact Civic follows in the Accord’s footsteps as a popular choice for young buyers with a lower price point. With a manufacturer’s suggested retail price of $18,640, the Civic is one of the cheapest vehicles on the list.
The Mustang is one of two muscle cars to break the top 10, despite the segment’s poor performance in crash ratings. However, the Mustang has been popular with millennial buyers because of its EcoBoost engine option, which provides better fuel economy, and has a “cooler [exterior] package,” says Erich Merkle, a Ford spokesman.
The model has been especially popular in warmer-climate states where it can be used year-round, Merkle says.
The Chevrolet Malibu is a less-expensive offering in the midsize segment than the Impala, with even more attractive incentives. Current deals include $1,500 cash back and 1.9% APR for 60 months.
Along with prices, the brand has been working to make the design attractive to a younger demographic as well. “Chevrolet has been aggressively introducing all-new designs for key vehicles like the Malibu,” Cain said.
The second muscle car on the list, the Challenger is a lot of car for a low price when incentives are factored in, says KBB’s Nerad. The Challenger starts at $26,995, and Dodge is offering up to $2,000 cash back in incentives.
The Challenger SRT Hellcat model has the highest horsepower in the segment at 707.
The Camry is consistently one of the best-selling cars in the U.S., according to sales data from The Wall Street Journal. The low price — a manufacturer’s suggested retail price of $23,070 — and fuel efficiency of up about 35 miles per gallon on the highway also make it attractive to budget-conscious millennial buyers.
Its inclusion in the Lending Tree rankings is “proof positive” that millennials see great value in Camry’s modern styling and numerous standard amenities, said Toyota spokesman Nate Martinez in an email.
The Camry is consistently one of the best-selling cars in the U.S., according to sales data from The Wall Street Journal. The low price — a manufacturer’s suggested retail price of $23,070 — and fuel efficiency of up about 35 miles per gallon on the highway also make it attractive to budget-conscious millennial buyers.
Its inclusion in the Lending Tree rankings is “proof positive” that millennials see great value in Camry’s modern styling and numerous standard amenities, said Toyota spokesman Nate Martinez in an email.
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
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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
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sales estimates.
Read more: Death of the sedan: Americans have fallen out of love with small cars
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:
The top four cars by auto loan requests are midsize sedans, which is a shrinking segment in the overall market, dropping 0.4% in sales — including rental and other fleet sales — from the first quarter of 2015 to the first quarter of 2016, according to data from Edmunds.com. Leading the pack is the Nissan
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Altima, an affordable offering — the base model starts at $22,500 — with large interior space.
“Nissan focus group research and showroom experience has shown the Altima appeals to a wide swath of the buying public,” said Nissan spokesman Dan Bedore in an email. The model is especially attractive to millennials because of its fuel economy and technology features, he added.
A little pricier than the Altima — the starting manufacturer’s suggested retail price is $27,995 — the Dodge Charger is another midsize sedan popular among millennial buyers, according to Lending Tree. Current incentives for the Charger include up to $2,500 cash back for customers who buy.
The Charger has made a few pop culture appearances recently, including serving as Uber’s “storm trooper” cars in a promotion for “Star Wars: The Force Awakens” in September.
The Dodge brand has begun to gain more traction with millennial buyers looking for “capability and power,” said Fiat Chrysler Automobiles
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spokesman Tim Kunkiskis in an email.
The Honda
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Accord and its smaller cousin, the Civic, have been perennial favorites among younger buyers. The models have been the two top-selling cars among shoppers under the age of 35 from 2004 to 2014, according to data from industry research firm IHS Automotive.
The midsize Accord starts at $22,205 and has a fuel economy of 37 miles per gallon on the highway. The Accord and the Civic’s continued popularity is a positive sign for Honda’s long-term business, said James Jenkins, a Honda spokesman, in an email.
Previously a rental fleet staple, the Chevrolet Impala’s redesign in the 2014 model year — which earned it the “most improved” award from Consumer Reports — may have helped its popularity among younger buyers.
The Impala starts at $27,300 and current incentives include $1,000 cash back and a 2.9% annual percentage rate for 60 months.
“The role of millennials can’t be overstated,” said General Motors
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spokesman Jim Cain, in an email, adding that buyers under the age of 34 account for 19% of the company’s sales, up 5 percentage points from 2010.
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