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Posts Tagged ‘millennials’

Forget Stereotypes; Millennials in a Car-Buying Frenzy

One in four set to buy a vehicle over the next 12 months.

by on Apr.08, 2016

Millennials may be more interested in buying cars than the auto industry has realized.

Conventional wisdom suggests that Millennials are all moving to urban centers, buying bikes and giving up their drivers’ licenses. But, like so many other popular perceptions, that’s not quite on target.

If anything, studies suggest that as Gen-Y ages, members of this tech-savvy generation are heading back to the suburbs, starting families and, yes, even buying cars. Indeed, new research by finds Millennials more likely to buy a car than any other age group over the coming year.

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“The notion that Millennials are not interested in buying a car is being turned on its head,” said Mike Cetera, Bankrate’s personal loans and credit analyst. “This is starting to shift from what we’ve seen before.”


Nine in Ten Millennials Say it’s “Important” to Own a Car

Rental cars provide alternate way to test drive vehicles.

by on Jun.29, 2015

Millennials may be more interested in buying cars than the auto industry has realized.

Conventional wisdom would suggest that Millennials are more interested in cellphones than cars, that they’d rather walk or bike, or at least stick to mass transit, rather than planting a vehicle in their driveways.

If a new study by Enterprise Holdings is any indication, conventional wisdom – as is often the case – needs to be stood on its head. The study finds 91% of Millennials calling it extremely or very important to own a vehicle, whether to commute, run errands or simply enjoy their lifestyle.

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Perhaps not surprising, considering the source, the study indicates that Millennials are turning to rental cars as an alternative way to go for a test drive.


Millennials Reshape the Car Buying Process

The American love affair with cars is downsized, not dead, finds new survey.

by on Aug.12, 2014

Despite reports to the contrary, millennials love cars, but when, what and how they buy them is different than earlier generations.

Reports of the death of the American love affair with cars have been greatly exaggerated, especially when it comes to young Millennial buyers, according to a new report – but what Gen Y wants, and how they go car shopping, is very different from prior generations.

Young shoppers, often saddled with debt, are looking for smaller, cheaper vehicles – and they’re far more likely to do their research online, often with their smartphones, according to new research by AutoTrader, the parent company of several major automotive web services.

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“You hear a lot that this generation doesn’t care about cars,” said Isabelle Helms, AutoTrader’s vice president of research, during an appearance at the Detroit Automotive Press Association. “They do care about cars.” (more…)

Millennials Pushing Development of Driverless Vehicles

Survey shows Gen Y wants features like self-driving car technologies.

by on Dec.09, 2013

Millenials wanting technology in cars is pushing the development of the driverless vehicle.

The push to develop a driverless car by Google and other manufacturers isn’t a matter of keeping up with the Joneses as much as these vehicles feature much of the technology younger drivers claim their want in their vehicles right now.

According to a recent survey of more than 14,000 drivers in 12 countries, Gen Y customers expressed preference for technologies that are all vital to creating a driverless vehicle.

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While there is ongoing debate about the future and safety of driverless cars, Accenture’s research shows that, on average, 90% of the survey respondents have an interest in some autonomous driving options, primarily those related to safety. (more…)

Millennials Skip the Showroom, Ask Facebook Friends for Car Buying Advice

Auto shoppers, in general, count on social media and other online reviews.

by on Jun.10, 2013

Millennials are wedded to the Internet, so no surprise they prefer to car shop online.

When Millennials go car shopping, they’re likely to ask for a little help from their friends – their Facebook friends, that is. The youngest generation of car buyers are far more likely to turn to social media for advice than head for the showroom, according to a new study.

More than nine out of ten Millennials now turn to the Internet when shopping for a new car or truck, according to research conducted on behalf of eBay Motors.  And they aren’t alone. A separate study found that “the majority” of buyers now go online to begin the car buying process – and more than half will be strongly influenced by what their friends have to say on Facebook.

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“It has become increasingly important for dealers to ensure that they are reaching consumers when, where and how they want to shop for vehicles – which today, more than ever, means online and on mobile,” said Kristine Chin, head of motors at eBay Motors.


Detroit Makers Gaining Ground, Japanese Losing Momentum with Millenials

Ford takes aim at downsized “super-segment.”

by on Mar.22, 2013

Stylish products, like this Ford Fiesta, targeting a downsized "super-segment" have helped Detroit retake share from the Japanese.

Rob Golden, a Los Angeles-based writer, can’t recall the last time he owned an American car, “unless it’s the Chevy my parents drove when we moved to California when I was 10.” But when it was time for his college graduate son to get his first new car, he opted for a Ford Fiesta, rather than the Toyota Camry or Corolla his father wanted 23-year-old Daniel to buy.

“I just think it’s cooler looking and a lot more fun to drive,” he explains.

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The members of the Golden family aren’t unique.  Baby Boomers by the millions shifted their loyalty to import makers like Toyota, Nissan and Honda over the last four decades. But their children appear to be migrating, in large numbers in the other direction, according to a number of new studies.

“U.S. automakers have burst onto the scene in recent years with small, fuel-efficient and affordable cars that really appeal to a young set of buyers,” says Senior Analyst Jessica Caldwell.


That’s Gen-N, as in “Neutral.”

Disinterested young consumers a drag on car sales.

by on Jun.26, 2012

Automakers are struggling to find a way to get Millennials out of neutral with concepts like the Chevrolet Code-130R.

U.S. auto sales are expected to show modest gains for June when the numbers are tallied up, but while the industry may be one of the few bright spots in an otherwise weak recovery, car sales are still lagging almost 3 million units annually below where they were a decade ago.

And a new study suggests that we won’t be seeing those old peaks anytime soon.  But don’t blame the economy, according to AlixPartners, a financial advisory firm based in Detroit. Blame the folks that the firm’s managing partner John Hoffecker calls “Gen-N.” That’s “N,” as in “Neutral about driving.”

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These are “new drivers who are really not even interested in getting a license,” explained Hoffecker.

AlixPartners’ new study echoes other recent research that finds so-called Millennials are far less committed to owning a car than Gen-Xers or, especially Baby Boomers.  They are, in fact, about six times less likely to get a driver’s license during their teens.  And even when they do they are less likely to purchase a vehicle.


Millennials Want Hybrids – But May Not Buy Them

Challenges targeting newest generation of buyers.

by on Jan.20, 2012

Chevrolet is testing the interest of Millennial buyers in a pair of concepts, including the Tru 140S.

There’s a big gap between what people say they want and what they’ll actually spend their money on, as automakers are well aware of.  So, the industry is taking a cautious view of a new study by consulting firm Deloitte that finds six of 10 Millennials would like to buy a hybrid or electric vehicles rather than a conventionally powered car, truck or crossover.

That would suggest that manufacturers are positioning themselves well for the wave of young buyers just now entering the market – also known as Gen-Y, the Millennials comprise a cohort of almost 80 million Americans, a group even bigger than the vaunted Baby Boomers that reshaped America over the last half century or so.  Virtually every maker on the market is now offering at least one gas-electric model in its line-up, with an assortment of conventional hybrids, plug-ins and pure battery-electric vehicles, or BEVs, to follow.

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But young drivers aren’t the only ones who say they want to go with the latest, battery-based green technologies.  Some other recent surveys have found that even older Americans routinely say they plan to “consider” a hybrid next time they shop for a new car.  It’s just that those battery-based vehicles usually don’t make the cut, in the end.  Last year, hybrids actually slipped as a percentage of the overall U.S. market to barely 2%.  Total sales of all battery-based vehicles barely matched demand for the Honda Accord.


Detroit Makers Still Struggling to Win Young Buyers

But there are some surprises among the brands Millennials want most.

by on Jul.07, 2011

Scion's tC is the most popular model with Millennials.

Conventional wisdom suggests that young buyers will turn away from the products their parents drove – potentially good news for Detroit’s Big Three who collectively lost the big Baby Boom generation to the imports.

New models, such as the Ford Fiesta, are specifically targeting Generation-Y, and the success of those products could determine whether Detroit reverses decades of market share losses, particularly in trendy coastal regions, such as California, where domestic brands account for barely one in four current car sales.  (Click Here to find out which are the most “patriotic” automotive markets.)

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Unfortunately for the Motor City, a new study suggests that while Gen-Y might be turning away from some traditionally strong Japanese marques, like Toyota and Honda, those young buyers are continuing to focus on Asian, rather than American, automakers.