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Posts Tagged ‘young car buyers’

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 Bankrate.com 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.”

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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.

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Millennials’ Purchasing Power Reshaping Auto Industry

Gen-Y auto purchasing power reaches $135 billion.

by on Jan.29, 2015

Millennials are starting to buy more new cars, after all, and have increased purchasing power.

It’s often said that Millennials have a very different view of the automobile – and a new study suggests they are gaining the purchasing power to reshape the auto industry into their own image.

Americans born between 1980 and the late 1990s are expected to account for about 25% of the new vehicle market this year. That means they will generate sales of 4.24 million vehicles, according to data tracking service TrueCar — the equivalent of $135 billion in purchasing power.

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Talking About The New Generation!

“Improving economic conditions are shifting the rhetoric around Millennials and car buying,” said TrueCar President John Krafcik. “They are the largest growing cohort in the market and saying they don’t like cars simply isn’t true anymore. We know having a car means the same thing to Millennials that it does to other generations: independence and identity.”

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Millennials Wants Wheels After All

MTV study finds Gen-Y would give up texting before their cars.

by on Jan.26, 2015

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

It’s become conventional wisdom that Millennials would rather text their friends than drive over to visit, but a new study by youth-oriented MTV suggests that, as is often the case, conventional wisdom has things upside down.

A survey of 3,600 Millennials reveals that three out of four would give up their social media for a day, and texting for a week, rather than hand over the keys to their cars. One reason more teens aren’t rushing out to drive, the study suggests, is that new licensing rules make it harder for them to get behind the wheel.

Consumer Insight!

“Millennials, like other generations, see car ownership as a way to establish independence,” Berj Kazanjian, Senior Vice President of MTV’s Ad Sales Research, said at a presentation of the new finding during the annual National Automobile Dealers Association convention in San Francisco. “Millennials,” he added, “also see car ownership as a way to craft their unique adult identity.”

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Millennials Move from Cars to SUVs – Just Like Their Parents

Compact cars lose their luster as Gen Y ages.

by on Aug.19, 2014

The Ford Explorer Sport is the perfect vehicle for conquering the concrete jungle.

Ford's Explorer is one of its more popular models with Gen Y as Millennials turn away from compact cars.

Conventional wisdom would suggest that Millennials would rather sit at home playing videogames and texting, and if they do buy a car, they’re likely to opt for something small, preferably with a battery.

As is so often the case, however, the prevailing sentiment is wrong, as several new studies reveal. Not only are Millennials buying cars in ever-larger numbers, but they’re opting for roomy crossovers and sport-utility vehicles, much like their parents.

Crossing Generations!

One likely explanation, according to Chris Travell, a vice president at Maritz Research, is that they want vehicles that can carry more of their stuff.

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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.

The Word is "Free"!

“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…)

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.

The Last Word!

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 Edmunds.com Senior Analyst Jessica Caldwell.

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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.

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