Remember the days when a vehicle's make and model were the motivating factors for most buyers? Of course, price provides a weighing factor in the buying process, but it seems as if the Millennials are motivated by other factors and trends within the car buying process.
Millennials Are Making Way In The Market Surpassing Their Predecessors
Baby Boomers had the car market in a grasp as far as purchasing is concerned, but the Millennials have become great students and have been on a "buying binge" of their own. As trends keep changing, Millennials are taking advantage of the newer concepts and upgrades of technology. According to Cox Automotive, it is stated that Generation-Y will buy up to 40 percent of all new vehicles over the next 10 years, which will cultivate the market for years to come. In 2016, Generation-Y purchased an astounding 4.1 million vehicles according to an article in Autoweek. That 4.1 million accounts for 29 percent of the market, which indicates their increase in purchasing vehicles over the past few years.
Millennials are not too far from taking over the car market after seeing astonishing increases in the number of vehicles this generation has purchased in 2016. Just like the generation before them, they also do not want to follow the conventional patterns of buying a vehicle.
According to AutoNation, the 3 car makes and models that are top sellers with Millennials are Toyota Corolla, Honda Civic, and the Honda Accord. Nowadays, Millennials actually go towards leasing due to the fact that they can switch their vehicle every 2 or 3 years without experiencing negative equity, and stay with updated technology. An Edmunds study reveals that 32 percent of Millennials opted to lease. It also states that they are the biggest leases with a household income below $50,000.
It goes to show that Millennials have different buying factors that motivate their decisions, but they are buying a lot more vehicles collectively. For more information about millennial car buying trends, please take a look at our Millennial eBook.