PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
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

By PaymentsJournal
March 23, 2018
in Press Releases
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
equifax logo

equifax logo

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.

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

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    digital cards

    Beyond Plastic: Why Digital Cards Are the Future of Credit

    July 8, 2025
    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    July 7, 2025
    Rewire Acquires Imagen, Looking at Prepaid Cards for Migrant Workers

    Smells Like Team Spirit: What Makes Cobranded Credit Cards Work

    July 3, 2025
    uk banking outages

    New Continuous Strategies for Battling Account Takeovers

    July 2, 2025
    Fraud Monitoring

    What to Expect When Nacha’s Fraud Monitoring Rules Take Effect

    July 1, 2025
    payments

    Don’t Just React to What’s Next in Payments—Anticipate It

    June 30, 2025
    consumer debit

    As Payment Types Proliferate, Debit Cards Still Go Strong

    June 26, 2025
    Embedded Payments

    How Embedded Payments Is Optimizing the Expense Management Process

    June 25, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result