Also, the wage gap between baby boomers and millennials, and stagnating wages for millennials, along with increasing vehicle-transaction prices, will pose challenges.
These predictions from chief economist of the National Auto Dealers Association of America quoted here in Auto Finance News.
Further to this, Experian released key findings from a recent study meant to provide a glimpse into the credit management habits of millennials and show how coming of age in a challenging economy has had an effect on this generation’s credit profile.
Experian’s study showed that millennials appear to favour vehicle loans over leases;
- Millennials = 13.4 :1 (auto loans per one lease)
- Generation X (aged 35 to 49) = 9.3 : 1
- Baby Boomers + (aged 50 and older) = 8.3 : 1
If the auto customer experience is designed with consideration to the physical needs of all generations, then then the ‘swings and roundabouts’ of age-based buying power will surely even out.