A lot has changed in terms of what younger generation customers want to buy. But when it comes to cars, some things remain the same.
Yes, Millennials are putting off buying cars, but eventually they cave in and make the purchase, and when they do, they still tend to buy cheaper used cars. And contrary to some other studies these younger buyers, at an average age of 29, care a lot more about price and a lot less about the infotainment system when buying a used car, according to Crowdtap.
Sixty-six percent of Millennials opt for a used car rather than a new one. And 76 percent of those, spend less than $25,000 on the used car, said a new Crowdtap study.
Also, these buyers care less about iphone connectivity and more about features like space and environmental friendliness, said Crowdtap.
Maybe this identifies a target demographic for the aftermarket–30 year-olds who are tired of the sub-standard audio system in that clunker they bought a year ago?
“Millennials are seeking vehicles that can help them most effectively get things done,” and they are less interested in the older car buying motivations of “flashy status symbols” or “exhilarating joy rides. They want utility and simplicity at a small cost,” concluded Crowdtap.
There are a lot more used car options today than in the past, such as Certified Pre-Owned vehicles, that are enticing younger buyers, said the Detroit Bureau.
And while Millennials put off buying a car, about 90 percent of city-dwelling Millennials plan to buy one, said Crowdtap.
But as we learned in recent years, teens continue to delay getting a driver’s license.
Forty percent of teens had licenses at the end of 2015 compared to 44 percent in 2000, according to the Federal Highway Administration.
Possible reasons for the downturn include teens’ ability to stream movies and shop at home instead of going to the mall. Plus, there’s the high cost of insurance for teens and the residual effects of the recession, said the Sacremento Bee.