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2016

MEMBERSHIP

DIRECTORY

49

They are the biggest generational group in U.S. history: 92 million strong. They’re generally savvy, smart, and well,

slightly different than everyone else. The fact is that Millennials – those who were born between 1980 and 2000

– are different, thanks to the world that welcomed them. Fast paced, full of shifts and innovation, this generation

grew up in a world where the reality of change was the only thing they could really count on. When you grow

up expecting things to change rapidly, you learn how to adjust on the fly, make decisions and not waste time

attempting to wade through processes that don’t work for you.

Like car sales and financing.

Where previous generations worked within the system, or attempted gradual change, Millennials are more likely

to just walk away and accomplish their goals another way. That includes the very concept of purchasing a car:

According to a 2015 study by Goldman Sachs, just 15 percent of Millennials said that buying a car was extremely

important, while a staggering 50 percent responded with an indifferent “whatever,” meaning that while car

ownership would be nice – it was not really that big a priority. It’s yet another sign of the era in which they grew

to adulthood; the emergence of the Internet, gaming, commuter gridlock and more, has recast many things that

were once considered a vital rite of passage.

In the Shadow of Mom and Dad, but Ready to Break Out

But wait a minute. Even though the clear message is that Millennials

don’t feel a car is all that important to their lives, they’re still buying

cars – and indeed are an irresistible force in the world of

automotive retail. A recent report by J.D. Power and

Associates gives them a 27 percent share of 2014

new car sales, up from 18 percent in 2013. Bloomberg

Business found that Millennials are now the second

largest group of new car buyers, behind – you guessed it

–Mom and Dad Baby Boomer. That’s not just speculation:

Dealertrack’s most recent 2015 Credit Application findings

showed that Millennials are a group on the move, taking an

almost 35 percent share of unique auto applications, with a healthy

representation in the Subprime space of 40 percent.

So, it’s possible that many Millennials may not be as emotionally

invested in the allure of the open road as previous generations, or as

enticed by the feeling of freedom that comes with a set of keys – or

MILLENNIALS ARE CHANGING AUTOMOTIVE RETAILING AND

LENDING. ARE YOU READY?