PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Racing to the Dealership: Baby Boomers and Millennials Show Off Their Credit Savvy in New Survey

PaymentsJournal by PaymentsJournal
March 23, 2018
in Press Releases
0
equifax logo

equifax logo

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

New Equifax survey finds generational behavior differences in auto buying, prime & subprime Millennials believe they can afford vehicles at similar price points

ATLANTA, March 23, 2018 – When consumers need loans for auto purchases, understanding their own credit risk situation matters. In its latest consumer automotive survey, Equifax Inc. (NYSE:  EFX), a global information solutions company, analyzed automotive shopping and buying behaviors across prime and subprime credit buyers, as well as Millennial and Baby Boomer age groups. Among the key takeaways from the survey, prime and subprime Millennials expect to spend the same amount on their vehicles; and subprime Millennials say they are more aware of their credit situation compared with subprime Baby Boomers.

The online survey was conducted by Equifax during February 2018 and included more than 1,000 participants. Other findings:

  • Prime Millennials (70%) and subprime Millennials (64%) are similarly likely to understand their credit situation;
  • However, 78 percent of prime Baby Boomers are aware versus just 53 percent of subprime Boomers.

Equifax suggests this as an opportunity for auto dealers and lenders to empower subprime consumers earlier in the loan process through online shopping in regards to their credit risk situation. This educational opportunity may help avoid surprises at the dealership, which can lead to lost sales and lower customer satisfaction.

The survey also illustrated that subprime Millennials expect to spend the same amount on a vehicle, roughly $20,000, as their prime Millennial counterparts. However, subprime borrowers are less likely to negotiate (25% less likely) than prime counterparts.

“Online resources available today have helped Millennials become more educated and savvy shoppers along with their Boomer counterparts,” said Rebecca Kritzman, Senior Director, Automotive Marketing at Equifax.  “Even though the Internet has provided many of these educational resources, we believe auto dealers and lenders can play an even bigger role in helping to guide and advise these customers before and during each transaction. A larger emphasis here can help customers avoid defaults in their loan, thus increasing the number of shoppers that return for repeat purchases in the future.”

Additionally, subprime and prime Millennials place a higher value on input from their family and friends when seeking advice on affordability before obtaining a loan versus Boomers. However, subprime Millennials (11%) are much less likely to rely on banks and credit unions versus prime Millennials (25%) when seeking input on vehicle affordability. Considering the number of “underbanked” individuals that fall into this subprime category, dealers should again look at this trend as an opportunity to help advise on the realistic price point for purchase given their overall financial pictureand look at educating influencers as well.

About Equifax
Equifax is a global information solutions company that uses unique data, innovative analytics, technology and industry expertise to power organizations and individuals around the world by transforming knowledge into insights that help make more informed business and personal decisions.

Headquartered in Atlanta, Ga., Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor’s (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs 10,300 employees worldwide.

Tags: CreditEquifaxMillennials
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    eCommerce On Social Media, social commerce

    The Rise of Social Commerce and Social Payments

    February 3, 2023
    Electroneum AnyTask; ETN Crypto, sales enablement

    Ethical Financial Selling: The Role of Compliance Technology and Sales Enablement

    February 2, 2023
    direct deposit

    Nacha Launches Campaign to Reach Millennials on the Benefits of Direct Deposit

    February 1, 2023
    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023
    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    January 27, 2023
    faster payments

    Faster Payments Are Set to Revolutionize Modern Digital Payments

    January 26, 2023
    How AI can Help Manage Payments Risk in 2023

    How AI can Help Manage Payments Risk in 2023

    January 25, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Equinix report - Dojo Delivers Fast, Reliable and Secure Card Payments to Businesses on Platform Equinix