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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?