A new study by TransUnion shows that the Millennial generation is the fastest-growing segment of auto-loan customers, essentially ending all talk that younger customers aren't buying cars.
Millennials, or people born since 1981, have increased their total outstanding auto-loan balances by 23 percent during the past year, representing the biggest jump of any age group, according to a study by the credit reporting firm.
"The growth in Millennials' auto-loan originations dispels the common myth that Millennials are not buying cars," said Jason Laky, senior vice president and automotive business leader for TransUnion, in a company statement.
The average opening loan balances for Millennials rose by 4.1 percent in 2014, up to $18,678 from $17,942 the previous year.
In 2009, Millennials accounted for just 16 percent of total vehicle-loan originations. Now they represent 27 percent and it could increase again this year.
"The growing average-loan balances for Millennials, combined with stable delinquency rates, indicate that we are still in the midst of a strong auto-lending environment," Laky said.
The similar study released by MTV earlier this year indicated that eight in ten Millennials surveyed view cars as the one big-ticket item people of their generation purchase. Their study showed that cars are in line with their phones when it comes to social connection.
"Overall, Millennials value their cars and phones for similar reasons of accomplishing tasks, freedom, exploring new places and learning new things," the study said. "They also agree that both allow for them to interact with friends and family and protect them from the fear of missing out."
So what kind of cars are Millennials buying? Nearly half of Millennials purchased small and compact vehicles, according to a recent report by J.D. Power. This would mean Millennials are looking for vehicles like the Ford Focus and Honda Fit.
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