CHARLOTTE, N.C., May 25, 2016 /PRNewswire/ -- Millennials in
Memphis, Milwaukee and St.
Louis are seeking auto loans more often than their
counterparts in any of the nation's top 50 cities, according to a
new study by LendingTreeĀ®, the nation's leading online loan
marketplace. They're at the forefront of a growing nationwide trend
of young car buyers returning to the automobile market.
LendingTree analyzed auto loan requests received from
May 15, 2015 and May 15, 2016 for consumers between 18 and 34
years of age, along with requests from the total population of
auto-loan-seekers in the same period. The city ranking is
created from the percentage of all purchase auto loan requests that
were submitted by consumers in the millennial generation.
Memphis, TN tops the list with
41.98% of all auto loan requests coming from millennials, followed
by Milwaukee, WI (40.68%) and
St. Louis, MO (37.88%).
Average auto loans to young borrowers in those cities are
$11,791.22, $11,413.42 and $12,352.36 respectively.
On average, 33% of all auto loan requests through LendingTree
come from applicants under 35 years old. Nationally, their auto
loans average $14,825.34, compared to
$17,938.74 for applicants aged 35
years and older.
"With unemployment among millennials improving, coupled with
lower interest rates and low gas prices, the share of millennial
auto loan requests is on the rise," said Doug Lebda, founder and CEO of LendingTree.
"Although the share of millennial auto loan requests is relatively
lower in densely populated urban areas, the auto market appears to
be enticing aging millennials."
Despite the widely-held belief that millennials will become an
increasingly smaller segment of the total car-buying population,
the share of auto loan requests from millennials has been
increasing in recent years. The share of millennial auto loan
requests has climbed from roughly 27 percent in early 2013 to about
34 percent in 2016, suggesting a return of younger buyers to the
car market.
Metropolitan
Statistical Area
(Top 10)
|
% of Total Car
Buyers
(Under 35)
|
Average Offered Loan
Amount
(Under 35)
|
% of Total Car
Buyers
(35+)
|
Average Offered Loan
Amount
(35+)
|
Total
Average
Loan
Amount
|
Memphis
Tn-Ms-Ar
|
41.98%
|
$11,791.22
|
58.02%
|
$14,456.26
|
$13,340.66
|
Milwaukee-Waukesha-West Allis Wi
|
40.68%
|
$11,413.42
|
59.32%
|
$14,832.10
|
$13,449.74
|
St. Louis
Mo-Il
|
37.88%
|
$12,352.36
|
62.12%
|
$16,362.25
|
$14,846.02
|
Minneapolis-St.
Paul-Bloomington Mn-Wi
|
35.91%
|
$15,230.94
|
64.09%
|
$17,601.59
|
$16,756.16
|
Houston-The
Woodlands-Sugar Land Tx
|
35.51%
|
$16,329.32
|
64.49%
|
$20,022.33
|
$18,706.88
|
San
Jose-Sunnyvale-Santa Clara Ca
|
35.25%
|
$19,499.23
|
64.75%
|
$22,257.11
|
$21,302.58
|
Nashville-Davidson--Murfreesboro--Franklin
Tn
|
35.06%
|
$13,788.34
|
64.94%
|
$17,404.30
|
$16,125.98
|
Buffalo-Cheektowaga-Niagara Falls Ny
|
34.50%
|
$12,339.31
|
65.50%
|
$14,885.90
|
$14,011.98
|
Columbus
Oh
|
34.29%
|
$14,935.07
|
65.71%
|
$17,757.22
|
$16,798.69
|
Los Angeles-Long
Beach-Anaheim Ca
|
34.00%
|
$15,926.06
|
66.00%
|
$19,326.20
|
$18,160.76
|
|
Metropolitan
Statistical Area
(Bottom 10)
|
% of Total Car
Buyers
(Under 35)
|
Average Offered Loan
Amount
(Under 35)
|
% of Total Car
Buyers
(35+)
|
Average Offered Loan
Amount
(35+)
|
Total
Average
Loan
Amount
|
Hartford-West
Hartford-East Hartford Ct
|
22.91%
|
$18,112.22
|
77.09%
|
$20,753.69
|
$20,106.74
|
Las
Vegas-Henderson-Paradise Nv
|
26.09%
|
$23,328.71
|
73.91%
|
$25,069.62
|
$24,631.03
|
Sacramento--Roseville--Arden-Arcade Ca
|
26.65%
|
$15,383.49
|
73.35%
|
$18,975.40
|
$18,033.34
|
Providence-Warwick
Ri-Ma
|
26.88%
|
$15,288.45
|
73.12%
|
$17,949.75
|
$17,238.81
|
Phoenix-Mesa-Scottsdale Az
|
27.04%
|
$15,921.47
|
72.96%
|
$17,659.25
|
$17,191.27
|
Virginia
Beach-Norfolk-Newport News Va-Nc
|
27.49%
|
$19,380.42
|
72.51%
|
$22,094.35
|
$21,348.34
|
Richmond
Va
|
29.20%
|
$19,106.95
|
70.80%
|
$21,993.58
|
$21,120.26
|
Portland-Vancouver-Hillsboro Or-Wa
|
29.24%
|
$16,606.55
|
70.76%
|
$17,603.16
|
$17,306.46
|
Salt Lake City
Ut
|
29.32%
|
$13,704.56
|
70.68%
|
$16,204.96
|
$15,471.76
|
Pittsburgh
Pa
|
29.55%
|
$13,909.42
|
70.45%
|
$15,972.57
|
$15,380.29
|
Additionally, LendingTree analyzed the top ten car makes and
models requested by millennials when completing a loan request in
the past 12 months.
Most Popular Cars
Requested by Loan-Seeking Millennials
(May '15 - May '16)
|
Rank
|
Make/Model
|
1
|
Nissan
Altima
|
2
|
Dodge
Charger
|
3
|
Honda
Accord
|
4
|
Chevrolet
Impala
|
5
|
Chevrolet
Tahoe
|
6
|
Honda
Civic
|
7
|
Ford
Mustang
|
8
|
Chevrolet
Malibu
|
9
|
Dodge
Challenger
|
10
|
Toyota
Camry
|
Approximately 53.6% of millennial auto loan requests in the past
12 months were for new vehicles and 46.4% of requests were
designated for the purchase of used vehicles. For borrowers
35 years and older, 55.8% of requests were for the purchase of new
vehicles and 44.2% for used, suggesting millennials are slightly
less likely to finance the purchase a new vehicle compared to
borrowers 35 years and older.
Full data and city ranking available by visiting:
https://www.lendingtree.com/press-room
About LendingTree
LendingTree (NASDAQ: TREE) is the
nation's leading online loan marketplace, empowering consumers as
they comparison-shop across a full suite of loan and credit-based
offerings. LendingTree provides an online marketplace which
connects consumers with multiple lenders that compete for their
business, as well as an array of online tools and information to
help consumers find the best loan. Since inception, LendingTree has
facilitated more than 55 million loan requests. LendingTree
provides free monthly credit scores through My LendingTree and
access to its network of over 350 lenders offering home loans,
personal loans, credit cards, student loans, business loans, home
equity loans/lines of credit, auto loans and more. LendingTree, LLC
is a subsidiary of LendingTree, Inc. For more information go to
www.lendingtree.com, dial 800-555-TREE, like our Facebook page
and/or follow us on Twitter @LendingTree.
MEDIA CONTACT:
Megan
Greuling
704-943-8208
Megan.Greuling@LendingTree.com
Logo -
http://photos.prnewswire.com/prnh/20110518/MM04455LOGO
Photo - http://photos.prnewswire.com/prnh/20160524/371837
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/auto-loans-are-gaining-popularity-among-millennials-300274506.html
SOURCE LendingTree