Rancho Cucamonga, CA (PRWEB) August 28, 2013
Loans.org has discovered that Millennials, or members of Generation Y, would overwhelmingly choose to borrow mortgage loans for the purchase of property over borrowing car loans to purchase new vehicles.
Despite the recent housing crash, members of Generation Y would rather invest in real estate by buying homes even though many of them had friends or family that lost money in the real estate bubble. Though new cars provide the benefits of transportation and increased social standing, Millennials decided that this was just not enough to persuade them to favor new vehicle ownership over home ownership.
One financial expert said that part of the reason Millennials shun cars is because many of them live in urban centers near their workplaces, which means that they have ready access to public transportation.
Also, ever environmentally conscious, many Millennials walk or bike to their workplaces and do not view vehicles as status symbols like previous generations do.
Further encouraging this trend is the current state of housing and rent. The story found that Millennials would rather buy property as investments, especially if they are already paying a high monthly rent anyways.
Loans.org spoke with one Millennial who is enraptured by the idea of the American Dream and envisions living in her dream home with her boyfriend, as oppossed to postponing that dream by getting a car. Her current car is barely standard and lacks many modern features but she still desires a home over a transportation upgrade.
Another Millennial is an entrepreneur who recognizes the financial risk in borrowing an auto loan for a new car since vehicles depreciate in value quickly. Even though she has a low debt-to-income ratio, she wants to borrow a mortgage loan and get a home instead of a car.
For more information on the world of car financing, go to http://loans.org/auto.
loans.org is a leading lending authority website that covers financial news, produces informative articles, and answers frequently asked questions. In addition to providing lending-related information, loans.org also hosts a variety of free online application forms for prospective borrowers to use when applying for loans.