Hollis Goode
Regional Vice President
EFG Companies
Millennials – roughly those born between 1980 and 2004 – are late to join the car-buying masses. In fact, they also appear to be late to everything else – leaving home later, getting married later, and having families later. But latest reports indicate that this generation is finally entering the market en masse!
A recent study by J.D. Power’s Power Information Network reported that the share of Millennials in the new car market jumped 28 percent. By 2020, Millennials are expected to capture 40 percent of car sales. This is great news for those who thought the entire generation would forego a car purchase. But the Millennial care-abouts and approach to purchasing a vehicle are very different from traditional car buyers. Are you prepared for these changes?
Vehicle as Utility…not Social Status
In the past, vehicles were viewed as an extension of the buyer’s personality or social status in life. Got a promotion? Get a luxury or a sports car. At the moment, Millennials sacked with college debt don’t have the luxury of thinking this way. For the time being, a vehicle is seen a means of transportation by this generation. It is an easier way to get groceries home or ferry a growing family. In fact, according to a survey by the personal finance website NerdWallet, 43 percent of millennials said owning a car was a hassle!