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Millennials invest in cars but don’t realize the actual costs

2018-08-30 09:10

Image: iStock

Millennial's are often associated with less-than-stellar stigmas. However, this  group of individuals (born between 1981 and 1997) is currently the largest living generation and a major influence on the health of the automotive industry.

Often characterized as "lazy," "entitled," and even "demanding," millennial's come out of the gate with much to prove.

Help from parents

One of the biggest stereotypes surrounding the generation is its members' emotional and financial dependence upon their parents.

READ: Car-buying in SA: 75% of new buyers influenced by 'crash test results' - AA

The guys at Zebra Insurance released some interesting statistics about millennial's and their car-buying habits.

 • 65% of millennial's think paying off a car is a worthy investment.

 • More than half of these respondents make their own car payments, with only 8% saying their parents make them.

 • 26% of millennial's are willing to spend just $100 on a monthly car payment, at most.

Zebra Insurance said: "Despite the negative stigmas, our findings showed a large percentage of millennial's valued owning a car, and even intended to make payments without the help of an older individual... they’re just a little confused as to what it might actually cost them."

Do millennial's think paying off a car is a worthy investment?

The short answer is yes.

Zebra Insurance said: "Millennials do think paying off a car is a worthy investment. More than half of those polled (65%) believed it was in their best interest to not only have a car but also to invest in one. Though both women and men replied this way, women were 12% more likely to consider it a worthy investment than men.

"In fact, millennials are taking out auto loans more often than did previous generations. This is due in large part to advances in technology, making the car-buying process quicker and more efficient."

Zebra insurance said: "Here is where we see the millennial stigmas shattered. While it’s widely believed that millennial's don’t foot many of their own bills, we found this to be untrue in the case of cars. Only 8% of millennial's said their parents made their car payments for them.

"In fact, more millennial's reported not having a car than said their parents made car payments on their behalf. More than half (52%) said they paid for their cars out of their own pocket. Of those that did, most (59%) were in the older age bracket (25–34 years), compared to 43% in the 18–24 age bracket."

Read more on:    guide and lists  |  millenials

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