If you’re in the market for a new car, you’re far from alone. Auto dealers are expected to sell more than 17 million vehicles in 2017. Millennials—those who range in age from 18 to 34 and are the nation’s largest living generation—will account for many of those purchases.
A survey conducted by Forrester for Navy Federal Credit Union found that nearly four out of five military millennials say purchasing an automobile within the next five years is somewhat or very important to them.
Be a Well-Equipped Buyer
If you’re a millennial, research shows you’re probably well-prepared when you first reach a showroom. An AutoTrader survey found that car buyers spend almost 17 hours shopping (with 81 percent of that time doing research online), and three-quarters of them end up buying the same make and model they had in mind when they first started their search.
Here is another way you can be prepared: secure your financing plan before even setting foot in the dealership. Why? Consider these advantages for getting a pre-approved auto loan:
- You’ll know exactly what you can afford. You won’t be tempted to fall in love with a tricked-out luxury car, only to discover that your budget only allows for an economy sedan. Use an auto loan calculator to figure out how the monthly payments will impact your budget. Remember to allow room in your budget for insurance, taxes, maintenance and other costs of owning a car.
- You’ll be in a stronger bargaining position. The auto dealer will see you as a cash buyer—someone who already has money in hand and can negotiate confidently. They will know you don’t need to depend on them for financing.
- You’ll simplify negotiations. Without the added complication of negotiating financing, you can concentrate on bargaining for a fair price on your car. You can also use your pre-approval to help avoid the sales rep’s pressure to agree to extra add-ons. Just tell the dealer you’re sticking to your pre-approved amount.
- You’ll likely get a better deal. Dealer financing may offer a low interest rate or a rebate, but rarely both. Often, the best deal is to take the rebate (if one is offered) and get a loan through your financial institution. With Navy Federal’s low rates, you can enjoy both a low interest rate and the manufacturer’s rebate.
So, What Do Millennials Want In a Car?
Since so many car buyers are millennials, manufacturers strongly consider millennial car features when deciding what features to build in new vehicles. So what does this tech-savvy and hyper-connected young generation want?
- navigation system
- satellite radio
- MP3 player
- mobile integration
We Can Put You Into the Driver’s Seat
Get pre-approved now for an auto loan from Navy Federal Credit Union. You’ll enjoy a low, competitive rate, an easy application process and payments that fit your budget.