The amount of interest shelled out on the longer loan, however, also is higher. On the five-year loan, total interest would be $2,965. Over seven years, interest would total $4,190. Higher interest rates, of course, incur even higher amounts paid over the life of the loan.
Technology has also fueled millennials’ car-purchasing habits. Online shopping tools aimed at car shoppers has expanded the traditionally local marketplace, and millennials have embraced it, Becker said.
“Now you can find cars available not just in your neighborhood but across the country, so you have a better ability to find what you want at the price point you want,” Becker said. “That kind of online shopping is very comfortable for millennials.”