Rising car-finance use among people in their 20s and 30s…Leases and rentals expand
New-car registrations hit a 10-year low as vehicle prices climb
High interest-rate burden prompts rebound in use among people in their 40s and 50s
New-car registrations hit a 10-year low as vehicle prices climb
High interest-rate burden prompts rebound in use among people in their 40s and 50s
“Car-finance use among 20- and 30-somethings continues to rise…40s and 50s show recovery”
On the 28th, Hyundai Capital released generation-by-generation data on auto-finance usage. Using 2023 as the baseline (100%), lease usage among drivers in their 30s rose to 189.3% in 2024 and 194.5% in 2025. Usage among drivers in their 20s also increased steadily to 181.1% in 2024 and 193.2% in 2025. Rental usage climbed as well: for drivers in their 30s it reached 101.3% in 2024 and 131.1% in 2025, while drivers in their 20s saw 104.1% and 122.9% in the same years, respectively.
The trend suggests consumers increasingly prefer using and replacing vehicles as needed rather than holding them as assets. Primary customer groups in their 40s and 50s began to recover last year. By rental usage, drivers in their 40s fell to 97.9% in 2024 but rebounded to 120.1% last year. Drivers in their 50s and 60s dipped to 94.9% and 92.4% before recovering to 122.0% and 126.9%, respectively.
As a result, car-finance usage now spans all age groups. By age group, lease share was highest among drivers in their 50s (30.5%) and 40s (25.3%), followed by 30s (16.8%), 60s (14.7%), and 20s (9.7%). Rentals were also concentrated among drivers in their 50s (27.3%) and 40s (23.4%), while those in their 30s (16.1%) and 20s (13.5%) each accounted for roughly the mid-teens.
“Leases skew toward EVs and higher-priced models; rentals focus on practical cars”
Analysts attribute the shift to consumers favoring monthly-payment arrangements over lump-sum purchases, which carry heavier upfront costs in a high-rate environment. The share of installment purchases rose to 91.8% in 2023 but fell to 85.7% in 2025, while the combined share of leases and rentals expanded from 8.2% to 14.3% over the same period.
Looking at model preferences by generation, leases among people in their 20s to 40s showed strong demand for electric vehicles and compact-to-midsize sedans. The Ioniq 6 ranked first across the 20s, 30s and 40s. Among drivers in their 20s, the Elantra (Avante) and Seltos followed; 30s favored the GV80 and Porter; 40s favored Porter and GV80. Drivers in their 50s to 70s also ranked Porter, G80 and GV80 highly.
Rentals skewed toward more mainstream, practical models. Drivers in their 20s favored Elantra, Seltos and Ray; those in their 30s favored Ray, Seltos and Sonata hybrid. Among buyers 40 and older, preferences leaned toward multipurpose and hybrid models: drivers in their 40s favored Ray and Carnival hybrid, and Sorento hybrid; drivers in their 50s to 70s mainly chose Seltos, Sorento hybrid and GV80.
An industry source said, “Leases tend to reflect selective consumption focused on relatively high-end models and EVs, while rentals tend to be built around practical models that meet everyday mobility needs.”
“Rising new-car prices plus high interest rates…consumers hesitate to buy”
This trend has translated into fewer new-car purchases. Kaizyou Data Research Institute found that last year personal new-car registrations among people in their 20s totaled 61,962—just 5.6% of all registrations (1,100,251 units)—the lowest in a decade. The share for people in their 30s also fell to 19.0%, another 10-year low.
The 20s share dropped from 8.8% in 2016 to 5.6% last year after a five-year decline, and the 30s share fell from 25.9% to 19.0%. By contrast, buyers in their 60s and 70s increased their shares to 18.5% and 4.6%, respectively, reshaping the market toward older consumers.
Industry observers point to higher vehicle prices and shifting consumer attitudes as the main reasons behind growing purchase reluctance. In a recent “car purchase perception” survey by direct used-car platform K Car, just 35.0% said they still prefer new cars. Meanwhile, 49.8% said they either hesitate because of price or are considering used cars. Nearly half of consumers cite vehicle prices and the interest-rate environment as reasons for postponing a purchase.
