Loan-strapped Millennials are extremely cautious about taking on more debt.
A 2016 study from LendingTree.com reflected an increase in auto loans for drivers aged 18 to 34. However, the average loan amount was $3,000 lower than for those aged 35 and up.
According to a recent survey from TD Ameritrade, 32% of Millennials owe anywhere from $10,000 to more than $50,000 on student loans.
The average student loan balance was $10,205, but was even higher ($11,475) for those still in school.
Capture This Buyer
Educate Your Team
With these facts in hand, car dealers have an opportunity to capture this Millennial buyer – and have a customer for life.
Educate your sales team – they must know every technology detail to converse with these smart buyers.
The F&I team needs a sharp pencil – and a savvy lending team – to draft loan packages for these debt-heavy buyers.
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Sources: J.D. Power, NerdWallet, AutoTrader, Federal Reserve Bank of New York, LendingTree.com