It’s the popular belief that millennials, also known as Generation-Y, will be the downfall of the auto-market. Automakers fear the dreaded millennial mission of not owning cars which, in fact, isn’t a mission at all.
It is true that millennials originally displayed less interest in owning a car. And, unfortunately for automakers, this happened as they were recovering from the recent recession. But, the truth is that, just like other Americans, millennials were struggling just as much to get back on their feet. Most millennials were battling student loan debt, fighting to get a job and trying to navigate the real world, all while still living with their parents. Then along came an alternative to owning a car: ride sharing. Companies like Uber and Lyft swooped in to deliver broke millennials to their destinations at a lower cost than a monthly car payment. Owning a car just wasn’t a feasible option for most millennials at the time, but as the years have passed, this has changed.
According to Experian’s Marty Miller, “With an improved economy and several years in the workforce under their belts, more millennials can afford a new vehicle.”
So that myth you heard about millennials turning into a mass-transit, ride sharing, non-car owning generation was false. In fact, not only is Generation-Y buying more cars, but they are on trend to become a key player in the automotive market from now on. Data from Experian shows that millennials were to thank for ALL new vehicle sales growth in North America for the first quarter of 2018, and they were the only generation to increase their market share from 2017 to 2018.
With this myth debunked, the automotive industry needs to stop fearing millennials and start embracing them. They need to focus on spending their marketing dollars on Generation-Y and creating a positive relationship with them.
For more information on this topic or for help marketing to millennials, contact us at jennifer@DOM360.com or 864-248-0886.