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Millennial Myth Busted: Young Consumers Really Do Like New Vehicles

Published: July 18, 2018 by Guest Contributor

Trivia question:

Millennials don’t purchase new vehicles. True or False?

If you’ve paid attention to conventional wisdom over the past decade, you are likely to say true. The pundits say millennials are headed for an urban lifestyle where mobility depends on a tapestry of trains, buses and ride-share options.

Vehicle ownership? Too expensive and in some cases, too conventional, the pundits say. And, many believe the perceived millennial mindset will cast a death sentence over individual vehicle ownership and change the entire auto industry right before our eyes.

But, if you listened to the pundits and said true, you’d be incorrect.

Real-world vehicle registration data tells a vastly different story. In fact, millennials accounted for all new vehicle sales growth in the North American auto industry during the first quarter of 2018. Millennial vehicle market share jumped from 27.9 percent in Q1 2017 to 29.7 percent in Q1 2018, generation X was flat at 27.2 percent, while the “mature market” and baby boomers each lost share. The “mature market” share fell from 9.6 percent to 9 percent, while baby boomers’ share fell from 35.2 percent to 34.1 percent.

Millennials had all but been written off as a serious customer group in the auto industry. But data tells a much different story. The demographic is maturing and is now poised to be a driving force in automotive marketing. But, what’s behind millennials’ apparent change of heart toward vehicle ownership? In short, they are growing up.

In 2008 when millennials first became a market force, the auto industry and the entire economy hit rock bottom. Millennials were often woefully under employed (and in many cases unemployed), making a new vehicle out of reach financially. With an improved economy and several years in the workforce under their belts, more millennials can afford a new vehicle. Additionally, almost half live in the suburbs.

What can lenders, dealers and retailers take from the data? That they cannot ignore the millennial population. But, it’s critical for these stakeholders to analyze their local markets and make sure they’re making the best decisions and connecting with prospective millennial car buyers.

For example, in Alpena, Michigan, millennials account for just 16.5 percent of the market, while in Amarillo, Texas, millennials command 34.4 percent of the market.

While a lot can be said for gut instincts, lenders, dealers and retailers need to also leverage data and insights; it can be the key to unlocking tremendous opportunity in the sales funnel. A whole generation that may have been perceived as a segment without potential, could make or break sales goals. Making informed decisions is the basis of every business activity, and data can help the automotive industry continue to thrive.

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Published: March 1, 2025 by Jon Mostajo, test user

Electric vehicles (EVs) are the topic of conversation in the automotive industry, but we’re continuing to see another fuel type pick up speed. With consumer demand shifting and drivers exploring more fuel-efficient options, the automotive market is leaning back into hybrids. In fact, new retail hybrid registrations grew to 11.5% through Q3 2024, from 9.5% through Q3 2023, according to Experian’s Automotive Market Trends Report: Q3 2024. Meanwhile, EVs increased from 7.7% to 8.2% year-over-year and gasoline vehicles declined to 70.4% this year, from 72.7% last year. Despite EVs gaining notable attention over recent years, some consumers may be factoring in the benefits of opting for a hybrid, such as the convenience of driving a longer distance without facing challenges as charging stations remain limited. As more manufacturers adapt to consumer needs and roll out additional vehicles, data shows 9.1% of 2024 model year vehicles in operation were attributed to hybrids, while 6.2% of 2024 model years were EVs through Q3 2024. Having more models enter the market has shifted the hybrid and plug-in hybrid electric vehicle (PHEV) market share, with the Toyota Camry making up 12.5% of the market share this quarter, a notable increase from 2.4% last year. On the other hand, the Jeep Wrangler 4xe went from having 4.5% of market share last year to 2.4% through Q3 2024. With many consumers continuing to have some concerns around EVs such as range anxiety and charging times, they’re seeking a more practical solution for their daily driving needs. The balance of fuel options provides more convenience—making hybrids an appealing choice for those wanting an EV alternative. It’s important for manufacturers to stay ahead of the competitive market as it’s constantly evolving. Leveraging the most current data can provide solutions that address both feasibility and consumer preference. To learn more about vehicle market trends, view the full Automotive Market Trends Report: Q3 2024 presentation on demand.

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