Buying and maintaining a vehicle is expensive—in fact, buying a car is the second most expensive purchase most people will make in their lifetime. A recent survey commissioned by NerdWallet found that millennials are like most other generations, they find cars expensive but still necessary.
NerdWallet commissioned the Harris Poll to conduct the survey of 2,025 U.S. adults, 1,819 of whom owned a car. Of the millennials who responded, 80% owned a vehicle. A staggering 92% of car-owning millennials said they considered all of the costs of car ownership before purchasing a car, 64% were surprised by the maintenance costs and 68% were surprised by the cost of auto insurance.
Interestingly, 43% of millennials found that owning a car is a hassle, while only 28% of those 45 and older consider it to be a hassle. When asked if they regretted their car purchase, only 12% of millennials regret buying their car and 73% who own a car now plan to purchase another one in the next five years.
According to the Federal Reserve Bank of New York, millennials are taking on less auto loan debt than in years past - as much as 11% less in 2015 than in 2003. Meta Brown, senior economist in microeconomic research at the New York Federal Reserve said, “it’s clear that younger Americans are shifting their debt portfolios quite heavily into student debt and away from more traditional consumer debts, such as auto loans and credit cards.”
Purchasing a car is a huge financial decision. As one of the most technical and financially savvy generation, there are easier and more accessible ways to shop for a quality used car now than ever. Avoid the hit of new car depreciation, check out Instamotor's inventory of newer used car with low miles to find the best deal.
Founder and a car nut. Born and raised from Detroit, Michigan. Val managed 12 dealerships prior to founding Instamotor.