Millennials start buying cars
After all the hand wringing about young people not buying cars, Gen Y born from 1977 to 1994 is buying cars after all. So far this year, Gen Y has bought 26 percent of new vehicles sold, more than the 24 percent bought by Gen X, born from 1965 to 1976. But baby boomers (born 1946 to 1964) are still the largest group of buyers, with 38 percent of new vehicles sold this year bought by them. The analysis comes from J.D. Power.
Gen Y sales volume is on pace to grow 17 percent for full year 2014 compared with 2013, and Gen X sales are expected to increase 6 percent.
As Gen Y consumers enter new life stages, earn higher incomes and grow their families, their ability and desire to acquire new vehicles is increasing, said Thomas King, vice president of Power Information Network. It will be important for automakers to respond to the needs of these consumers, not only in terms of the vehicle design, but also the marketing, sales and service experience.
Gen Y buyers tend to favor small vehicles, with compact vehicle segments accounting for nearly half of all Gen Y purchases, says J.D. Power. Compact cars are the most popular segment for Gen Y. Gen X slightly favors midsize vehicles, with compact SUVs the most popular segment.Download Bulletin PDF