Forget the Stereotypes: Millennials Are Buying Up Cars, Survey Says

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Source:   —  April 10, 2016, at 7:56 AM

But, love so many other favorite perceptions, that'south not quite on target. If anything, studies propose that as Gen-Y ages, members of this tech-savvy generation are heading back to the suburbs, starting families and, yes, even buying cars.

Forget the Stereotypes: Millennials Are Buying Up Cars, Survey Says

Conventional wisdom suggests that Millennials are all emotional to urban centers, buying bikes and giving up their drivers' licenses. But, love so many other favorite perceptions, that'south not quite on target.

If anything, studies propose that as Gen-Y ages, members of this tech-savvy generation are heading back to the suburbs, starting families and, yes, even buying cars. Indeed, new research by Bankrate. com finds Millennials more likely to purchase a car than any other age grouping over the coming year.

"The notion that Millennials aren't interested in buying a car is being turned on its head," said Mike Cetera, Bankrate'south personal loans and credit analyst. "This is starting to shift from what we've seen before."

There'south small question that Millennials have been less interested in driving than previous generations. Among those aged twenty to twenty-four, only slightly more than three out of four held a driver'south license in two thousand-fourteenth, according to a survey released by the Univ of MI Transportation Institute in January. Back in one thousand nine hundred eighty-third, the figure was more than nine out of ten Boomers of the same age.

Renewed urbanization and an interest in transportation alternatives, including everything from bicycles to car-sharing services, have been cited as explanation. But auto industry studies have hinted at modify to come, suggesting that Millennials may simply be a tiny slower off the line than prior generations: emotional out from residence later, getting married at an older age, and waiting longer to drive.

The shattering impact of the Grand Recession didn't assistance either, according to economic experts, disproportionately hammering Millennials with higher college debt and higher unemployment rates.

But as they age, and with the economy presently in significantly better shape, Millennials show up to presently have more cash and be more willing to spend it, if the Bankrate study is any indication. The research covered both car-buying and residence improvements, and found members of Gen-Y, as a group, have huge plans in the works.

The study, conducted by Princeton Survey Research Associates, found that grouping more likely to both do work on the residence and purchase a car than any other generation over the next twelve months.

About twenty-four % of Millennials, aged eighteen to twenty-nine, said they'll purchase a car sometime during the next twelve months, well-known analyst Cetera. The figure slipped to twenty % of those between thirty and forty-nine, and "then it really falls off the table," he added. Among those aged fifty to sixty-four, for example, only ten percent said they were planning to purchase a car over the following year.

Unfortunately, the brief telephone survey of 1.000 Americans over the age of eighteen left a no of questions unanswered. For one thing, it focused on car buying, and Cetera conceded it'south possible older buyers — who are more likely to lease than purchase compared to younger shoppers — may have answered "no," even though they'll be in the market to lease a new vehicle.

The survey also failed to distinguish between those looking to purchase a new or used vehicle. In many cases, he noted, Millennials who do drive have been stuck with older vehicles that are starting to wear out, "so they necessity to purchase something newer," if not necessarily new.

The reality of the American auto market is that about three used vehicles are sold for each new one.

Even given the holes in the Bankrate study, however, it does propose that Millennials are tempering their antipathy towards the automobile with nearly one in four saying they'll be in the market in the coming twelve months. That could assistance hold the current car market'south record pace going just a tiny bit longer.

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