Millennials. If you google the term you will get a number of different descriptions but Millennials are people who are born from 2001 onwards. As I’m classed as a generation Y it’s safe to say I feel old! But jokes aside, there is common misconception of Millennials- they are tight! Well Ally Bank reported that millennials are not buying cars less often than baby boomers or members of Generation X. They are saving money for longer periods before purchasing.
AutoTrader revealed that when it comes to cars millennials are image conscious and aspirational, and more open to imported brands and actually do have an interest in vehicles and driving. They are looking for brands that fit them best and mirror the image they have of themselves. These traits include stylish, sophisticated and innovative. When it came to overall brand fit, Millennials said the following, in order, were most reflective of their personality:
All of the above won’t be cheap but the lower price point vehicles like an Audi A1 or BMW 1-series are making these luxury cars more attainable for millennials early in their car buying journey.
These luxury cars are more attainable and affordable thanks to the number of financial products available to car buyers. Carwow revealed that 1 in 6 millennials brought their first car via a finance deal and 90% admitted that the main appeal was having a brand-new car rather than a used car.
Millennials are research savvy and will depend on this to help drive their buyer behaviour. 43% rely on word of mouth of which 90% is face-to-face and 41% is blogs and forums. They are most likely to be introduced to their car by a family member or friend.
Millennials are a different beast. They are buying cars but they’re just more savvy and informed about the purchasing process than previous generations. Dealerships need to adapt and evolve to cater for the millennial buyer and there are clear signs they are. But my question is, are dealerships doing enough to truly maxmise opportunities when it comes to millennials? Or could dealerships do more? If so what would you like to see? Let’s talk!