To the previous generation, Millennials are weird partly because of how and why they make their choices. But that makes them unique. They will dive deep into everything to go all the way up and everyone seems to form an opinion regarding them. Millennials, also known as the Y generation still the largest group of people. They have a lot of attention from everyone because of their numbers and how they affect, politics, economy, international relations and of course the consumer market.
So everyone generally wants to have the idea as to how they make their choices when buying cars. There are conflicting views on their effect on the car industry. Some say that their perception of the car industry will bring it to the ground while others say that they will make this industry boom. Although, this may not be the time to jump to conclusions. Let us see how they are affecting the car industry.
Are Millennials Buying More Cars?
According to some statistics, Millennials have a huge amount of purchasing power. They are known to spend roughly 20 billion pounds per year. So if we have a deep look into what they are buying we will have more idea on how much of that portion goes to buying cars.
There have been studies that show that most of the Millennials are shown to have spent much more on experience rather than just “stuff. Buying cars seems to be not something of a luxury rather it is born out of necessity. But only an exceptionally low number of Millennials have shown to spend on cars despite having a high purchasing power.
Millennials represent almost 40 per cent of the total market and are the largest group with a high purchasing power. They are however recent studies in which it is shown that they are buying more cars primarily of the location that they live in. Owing to hikes in prices, they may be forced to live in the suburbs where owning a car is a necessity.
View of Car Ownership
They are buying more and more cars but not because they think it is a symbol of status like their parents did. How they look at the ownership of a car is changing and that is why the car is no more a luxury item unless you are driving a Viper.
As mentioned before, they buy cars more out of necessity rather than to enjoy a status. Having status is more about your family background and how well you are known in a particular circle. You will be surprised to know that almost fifty per cent of them believe cars to be more of a hassle rather than a convenience.
For the Millennials, all that matters the most is getting from one point to another which they will in all cases prefer to do by using a local transport if it is readily available because not only it is cheap, but they find it convenient.
If Millennials get the chance, they will avoid using their car and will prefer to ride hailing services like Uber or Lyft. These services are easy to use and cheap, which makes the very concept of owning a car irrelevant altogether. They will rather look for van leasing companies UK than looking for new cars.
With that being said, despite all these factors, Millennials are still buying cars. According to reports, Millennials who use ride-sharing services still prefer to buy and own a car for themselves. That perception, that owning a car is useless is still a long way to go. With the increase in technology and services, we can’t say for sure what the future of the car industry is.