Survey says Millennials have less stake in first-car purchase than Boomers did
The sweeping changes affecting the automotive sector have crossed over into the first-car buying habits of today’s Millennial generation, according to a survey released by CarGurus.
Millennials have less influence and financial stake in their first car compared to Baby Boomers, according to survey results published by the online automotive shopping platform.
“I think shifts in generational preferences transcend country borders and that experiences in getting a first car for Boomers and Millennials in the U.S. are likely quite similar to the dynamics in Canada,” says Sarah Welch, Senior Vice-President of Consumer Marketing at CarGurus.
The study looked at American first-car buying habits and found that 37 per cent of Millennials contributed to the cost of their first car, in contrast to 65 per cent of Boomers. Also, 23 per cent of Millennials’ first cars were hand-me-downs, while 10 per cent of Baby Boomers’ first cars came from a family member.
“It’s always a good idea to keep families in mind when developing advertising, whether it’s from the perspective of the young driver getting their first car, or the parents gifting their child a vehicle,” says Welch. She added that with graduation season in full-swing, “now is a great time to reach families with relevant messaging.”
The survey also found that despite the generational differences, a used car was typically the first car for a high percentage of both Millennials and Boomers at 83 per cent for both groups, and the majority of both groups — 55 per cent — got their first vehicle between the ages of 16 and 18.
First car brands between the demographics, including those of Generation X, find common ground with Chevrolet topping the list for all three groups. Ford ranked among the top three for Generation X and Baby Boomers while Toyota was in the top three makes for Millennials and Generation X — Honda and Dodge round out the top-five list for all three groups.
“Based on the survey findings, Millennials didn’t have much of a say in what their first car was,” explains Welch. “If that continues to be the case for future generations, it’s up to dealers to learn the priorities of both the driver and the parents and meet the needs of both.”
She added that although the parents may be paying for the car right now, Millennials will probably be buying a car on their own in a few years. “A memorable dealership experience from their first car could bring them back to your lot for another purchase,” says Welch.
“So working to build and maintain strong customer relationships from purchase to ownership is certainly worthwhile.”
The online survey was conducted in April and queried more than 1,800 randomly selected participants who have owned a car, ranging from 18 to 70 years of age.
