The media continues to push the fact that millennials aren’t looking to buy cars. But it seems that even those who do want to buy cars are having trouble getting loans.
In a letter to a Fox Business personal finance writer, 22-year-old “Kelly” says that with a 670 credit score, a $50,000 salary, and less than $300 in debt, she can’t get a loan to buy a new car. The writer suggests that she offer to put down 20% or 25% of the purchase price.
What else could lenders do to reach out to borrowers looking to buy their first car?
Lenders should do what they can to pounce on these buyers, because there aren’t that many of them. Automotive News columnist Jesse Snyder makes the case that a big reason young people aren’t buying cars is that the debt load caused by student loans is too big. He argues that this national trend of huge student loan is going to affect the auto industry for years to come as new adults struggle to get out of debt, putting off buying cars or perhaps existing as a single-car household rather than getting a second vehicle.
Car sales are projected to rise this year, but could the U.S. be moving away from being a car-first society, simply because people don’t want to take on more debt?
