Millennials are Starting to Take Over the Car-Buying Market

Millennials are Starting to Take Over the Car-Buying Market

Last year, millennials purchased 4.1-million vehicles in the U.S.

Making up the fastest growing segment among vehicle buyers, millennials are estimated to represent about 40 percent of new vehicle sales in the U.S. by 2020. Currently the segment accounts for 29 percent of the market, according to J.D. Power and Associates’ Power Information Network. But that wasn’t always the case, with millennials accounting for 20 percent in 2011.

With more car-sharing services and larger college debt payments, it appeared millennials weren’t interested in owning a car but that’s changing as the economy improves. Now, experts believe the segment is likely to influence future automotive developments more than any generation before them.

SEE ALSO: Here’s What You Need to Know About Millennial Car Shopping Habits

In the coming years, new car purchased by millennials are likely to grow at a faster rate than any other age group. Currently the baby boomer generation accounts for 36 percent of the market, but that figure has declined from 42 percent in 2011. Over the same period, millennials share rose nearly 9 percentage points.

According to sales data, millennials are mostly purchasing entry compact cars and some SUVs and crossovers. According to AutoNation, the largest public dealership group in the U.S., millennials favor Toyota and Honda, capturing 19 percent and 15 percent of millennial sales, respectively. Ford came in third with 14 percent.

[Source: Automotive News]

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