It seemed for some time that millennials would be the generation to break off the American love affair with the car. But now that they are making more money, starting families, and in many cases moving to the suburbs, their car buying has increased substantially.
In fact, new research from Experian shows that “millennials accounted for all new vehicle sales growth in the North American auto industry during the first quarter of 2018,” writes Marty Miller, a senior auto industry consultant with Experian. Millennial vehicle market share jumped from 27.9 percent last year to 29.7 percent this year (figures are for the first quarter). Although baby boomers still have a higher share of the market, that share fell this year to 34.1 percent.
Clearly, millennials should not be written off as potential vehicle buyers. But, says Miller, “it’s critical for [dealers] to analyze their local markets and make sure they’re making the best decisions and connecting with prospective millennial car buyers.”Download Bulletin PDF