While Baby Boomers purchase 62% of all the cars in the US (news and used), Millennials account for the fastest growing sector of NEW vehicle purchases, especially in major cities, such as New York, Los Angeles, San Francisco, or Seattle.
According to a study by Edmunds, a car shopping and information platform, millennials (defined as those born between 1981 and 1996) make up the largest age group of new car buyers in the US, representing 34% of new car purchases.
Additionally, a report by J.D. Power found that millennials are more likely to purchase SUVs and crossovers compared to other age groups.
Historically, younger car buyers have gravitated towards major cities where public transportation and ride-sharing services are readily available. However, since 2020 many millennials in cities are opting to purchase a new car.
In terms of demographics, millennials are generally more diverse than previous generations, so there is no one-size-fits-all answer to this question. According to a study by Zipcar, it was found that 45% of millennials in urban areas own a car.
- A study by the University of California-Davis showed that, people with income over $150,000 per year purchase a third of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), and about a third are millennials.
- In the same study, people with household income of $100,000 to $149,000 account for about 20% and people with household income of $50,000 to $99,999 per year account for about 27% of these vehicles.
- Millennials most preferred brands: Tesla, Jeep, Ford, Mazda, Volkswagon, and Lexus
- Among New Yorkers millennials, two household income groups account for most new vehicle purchases: Under $50,000 per year (mostly single-person households) and $100,000 per year and up (mostly families).
- Millennials consumers are visiting OEM websites and automobile dealer websites, looking at vehicle specs and pricing 43% more than Baby Boomers.
Millennials have distinct purchasing behavior
While research suggests that millennial car buyers in major cities tend to be well-educated, tech-savvy, and value environmentally-friendly features in their vehicles, there are some distinct and unique buying patterns and choices that may be associated to each major city, in some cases very unique to them as compared to other cities.
For instance, many use to believe that millennials tend to prioritize practicality and convenience over luxury and status symbols. This is not the case for every major city, and in fact can vary drastically between, say, New York and Los Angeles.
Millennials in New York City tend to have unique car buying habits compared to other cities due to the city’s dense population and robust public transportation system. New York car dealerships look for very specific trends and habits that are commonly seen among millennials in New York when it comes to buying cars, as compared to the rest of the country.
Millennials car buying habits in New York City
Many millennials in New York City opt for shared car ownership programs such as Zipcar, Car2Go, and Maven rather than purchasing their own cars. These programs allow individuals to rent a car on an hourly or daily basis as needed. But more than 50% choose to buy a new car as soon as their salary goes above $100,000 per year. This trend seems to be somewhat unique to New York City and surrounding areas.
The City of New York and the Mayor’s office have implemented several incentives and programs to encourage the adoption of electric vehicles (EVs) in the city. Millennials in New York are more likely to consider electric or hybrid cars due to the city’s commitment to sustainability and environmentalism.
These programs are quite encouraging. New York City initiatives are quite substantial, and include incentives such as tax credits and free charging stations for electric cars.
The New York city deliberately approved these generous initiatives aim to reduce carbon emissions, improve air quality, and encourage the adoption of electric vehicles in the city. By incentivizing the purchase and use of EVs, the city is taking steps to make sustainable transportation options more accessible and affordable for its residents.
With the city’s tight streets and limited parking, smaller cars are a popular choice among millennials in New York. Compact cars and hatchbacks are common, as they are easier to maneuver and park in the city. Many of them are EV or hybrid cars.
Like many millennials, those in New York prefer to shop for cars online, or at least looks at pricing and options before they go to a showroom for a test drive to physically see a car before they make their final decision. This allows them to research and compare prices, features, and reviews before making a major purchasing decision.
New York residents generally speaking, prioritize practicality and value for money when purchasing a car. They tend to look for cars with good gas mileage, safety features, and reliability, rather than flashy luxury vehicles.
New York based car dealerships need to plan their sales promotions and seriously consider that millennials in New York City tend to be more focused on sustainability, practicality, and cost-effectiveness when it comes to car buying, due to the unique challenges and opportunities of urban living in the city.
