Millennial Car Shoppers
Between 2012 and 2013, there was a deluge of articles fretting over the Millennial car buyer, or rather the lack thereof. Is America’s Love Affair with the Car Over?,” Why Don’t Young Americans Buy Cars?,” and Millennials Reject Cars were only some of the handwringing articles written on the topic. Understandably, the auto industry gets concerned when such a huge portion of the buying public is not, well, buying. However, it was not lack of interest that was keeping this group out of the market. Millennials were hit particularly hard by the recession. High student debt and low job prospects made spending on anything difficult, let alone big-ticket items like cars. While these fretful articles were popping up, the youth unemployment rate hovered over 16 percent, and most employed Millennials had low-income jobs. A car just wasn’t in the budget. But, fear not! The economy is recovering, youth unemployment is at its lowest since 2008, and Millennials are buying cars. Eighty percent of Millennials said that they plan to purchase a vehicle in the next five years. At 80 million strong, and with more than $200 billion in annual buying power8, there are plenty of sales to be generated from Millennials.
In this piece we will tell you who Millennials are, what they want, how they buy, and most importantly, what you should do to reach them.