Car Brands That Millennials Love But Can’t afford
Millennials are stuck in student loan debt, leaving them wanting many car models and brands that they simply can’t afford. With pressing loan payments, many millennials are trying to avoid car payments of $300+, leaving them with limited options to choose from. A loan with a monthly payment of under $300 requires a purchase of $20,000 or less.
What can millennials do to combat these out-of-reach costs?
Many lease vehicles that they’ll never own, but they still enjoy lower payment rates and high-end vehicles that they want. Even when these buyers can’t afford a vehicle, they end up in high-end cars, such as a Lexus or Jaguar.
A brand known for their high-end vehicles. The company was started by Toyota and is known for reliable vehicles that have impeccable interiors and last for years with the right maintenance. Beautiful aesthetics, the Lexus brand doesn’t come cheap.
The lowest priced Sedan starts at $37,000 without all of the upgrade packages included.
How are millennials landing in the seat of a Lexus?
Nearly 65.5% will lease a Lexus, versus 52.9% of all buyers that lease Lexus vehicles. Millennials lease Lexus models 23.9% more than all buyers.
The Cadillac name has always been known for luxury. The brand made popular in movies, Cadillac is also a pricey brand. The lowest priced sedan in the company’s lineup starts at $34,000, with the high-end Escalade costing $72,000.
Millennials are also leasing Cadillacs 20.5% more than all buyers, with 43.9% lease penetration.
Another luxury brand that millennials can’t afford, but end up driving. Nearly 70% of all millennials driving a Jaguar are leasing their vehicle, with just 57.8% of all buyers leasing Jaguars. Millennials lease these vehicles at a 21.8% higher rate than their peers.
Jaguar’s lowest priced vehicle is a coupe that starts at $65,000.
The highest priced model in the Jaguar lineup costs $90,000+.
Millennials lease Ram vehicles at a penetration rate of 30.5% higher than all buyers. More affordable, nearly 16.7% of millennials that drive a Ram are on a lease, which is far lower than the previous names on this list.
Ram is a truck maker that also offers vans.
The lowest priced vehicle the company offers is $25,660 for trucks, and $23,130 for vans. It should be noticed that the vans are commercial.
The General Motor Company has millennials with a 36.2% lease penetration, and 26% more millennials leasing a GMC than all buyers. The main brand offers trucks, SUVs, crossovers and vans.
The Canyon is the lowest-priced truck, starting at $20,995. The Terrain is the most affordable SUV/Crossover, with a starting price tag of $24,070. Vans are for commercial use, with the lowest priced model being the Savana Carbo and a price tag of $29,555.
Millennials are finding ways to get into vehicles that they can’t afford to own outright. Leases are often hefty, but less expensive than loan payments. Other brands that millennials can’t afford but are leasing anyway include: Buick, Subaru, Scion, Mini and Acura. Over-inflating spending may cause serious issues for millennials in the future.