Current students are entering college in the wake of the information technology burst and at the same time experiencing one of the most economic unstable times since the Great Depression. These events have dramatically shaped young people’s purchasing and consuming habits.
Unlike their parents and grandparents who took on student loans for degrees at expensive universities, most new students are being strategic regarding their career paths in more affordable, practical ways. Instead of a 4 year degree in Art, English, Gender Studies, Italian Renaissance or Cultural Anthropology many students are looking at community college programs. There are many community college degrees that have strong career paths. Some of these include Registered Nursing, Non-destructive Testing, HVAC repair, Web Programming, Web Design, Nuclear Medicine and Welding. Successfully completing these programs offers students a clear career path.
New students also spend money differently than their parents. Instead of large gas guzzling SUV’s they prefer Honda Civics or the popular Toyota Prius. Jumbo sized houses are also avoided with small modern homes being the choice of this generation. At least part of their home and auto choices is based upon the economic hardship experienced by today’s youth. As some parts of the economy improve more and more students and recent graduates are buying new cars. This brings up another difference with today’s college students; their reliance on the Internet for nearly all of their information. If they need a car loan they don’t go to the dealer, rather they start with online lenders like bestautolenders.com. These changing behaviors are impacting how and where companies conduct business.
It wasn’t long ago that car loans were only made through a bank, a car dealership or credit union. Today, nearly all college aged students look online as their first step in securing a loan. Most recent graduates and especially current students will be faced with the challenge of qualifying for a car loan. There is also the issue of having strong enough credit to even get a loan. Bad credit auto financing is not a new industry, but it has seen a strong resurgence due to the financial strains families have experienced in recent years. Likewise, students with no credit history and a meager income will have trouble qualifying for a standard loan until they are more established in their careers.
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