Millennials are saving up to buy vehicles, and when they do, most will get advice and share their own experience with their social media network, according to a study by Ally Financial and the Center for Generational Kinetics.
Although many consumers want to find auto financing information and options online, the dealer-customer relationship still plays a crucial role in financing decisions, according to the study.
More than a third of millennials (ages 21-38) surveyed said they believe car buyers always will find the best deal for financing at a dealership. More than half of millennials surveyed were saving for their next vehicle in some way, and about a quarter of that group had a specific savings account for a vehicle. Half of Gen X consumers and 44 percent of baby boomers were saving for a vehicle.
About 1,000 consumers took the online survey. The millennials who participated were considered to be affluent, according to the study.
Some doubt that millennials think about and prepare for their financial future, said Andrea Brimmer, chief marketing officer for Ally. "That could not be less true," she said.
"The millennial generation has watched their parents achieve great things financially, and then during the Great Recession, they watched their parents lose it all. It scared them to the core."
Because of that, millennials are focused on saving and becoming more financially savvy, she said.