Millennials and Their Cars

Millennials, those people born between 1980 and 2000, were getting grief from the media for quite awhile. One aspect of that was there was a feeling these "youngsters" weren't investing in houses, buying cars or getting steady jobs.  Despite all of these accusations, Millennials have taken over in many areas, including one place where they were not expected to go.  

Part of this mythology included a certainty that this generation didn't want to drive, and that they wouldn't do anything like their parents have done.  However, that is clearly not true any more, if it ever was.

JD Power, a leading industrial analyst, has announced that Millennials are leading in 17 of the 27 automotive market segments that the analyst tracked in 2021.   The group is not so different from the rest of the population.  Surprisingly, they are leaders in buying pickups and luxury rides.  Not so surprisingly, they are leaders in buying electric vehicles.  

Unlike prior generations, you won't find any Millennials who do not use the internet or a smartphone. They are, for the moment, the most technologically savvy and wealthiest group of individuals among the public.  

Pickup Truck Sales 

In 2021, Millennials surpassed the Baby Boomers in buying pickup trucks.  This included midsize, full size and heavy duty trucks.  The analyst explains the trend as part of the generation's move  to the suburbs.  In cities, they could take the bus, or they wanted a small car that could fit limited parking space.  In the burbs, they have garages, house chores, and open space that beckons.  So, just like the previous generation, they have started buying trucks in large numbers.

Millennials are the generation that grew up with sports like rock-climbing and bouldering. So, a group within the group is buying trucks to further their adventures in overlanding, off-roading, and camping. They are also the generation that knows how to maximize information to determine what they can afford. They know how to use an auto loan calculator and to buy only as much vehicle as they can afford. 

Luxury Rides

In another surprise, Millennials are buying record numbers of luxury cars.  For anyone who said that Millennials didn't have ambition, this is proof positive that they were wrong. Clearly some in this generation place a value on style and class.  They aim to look prosperous and perhaps are in the same competition of keeping up with the neighbors that plagued the Baby Boomers. It also indicates that many are professionals who want their vehicle to reflect well on their reputation. They use their buying power to leverage good deals such as certified pre-owned cars Scottsdale.

EV Sales

Electric vehicles are being sold to Millenials in greater numbers than any other generation.  The group represents 35 percent of sales while Baby Boomers and Generation X represent 29 and 26 percent respectively.  According to a 2017 Nielson poll, Millennials care about the environment more than any prior generation.  This has changed how they shop. 

Almost 40 percent are willing to pay a premium when the product is environmentally friendly.  That's 4 out of every ten Millennial consumers, and that represents a big part of the burgeoning car market.  Some 85 percent want corporations to make the environment a priority. 

This could make a difference to those automakers who are changing their business model as well as to the 100-percent electric manufacturers that are emerging.  

The Impact on the Automotive Market

Now here is where it comes together.  There is a juncture between the fact that Millennials represent the biggest EV market and the fact that Millennials have enormous combined buying power.  This may help turn the tide toward electric vehicles of all kinds very fast. 

As a case in point, electric trucks have been slow to come to market compared to how long the idea has been in development.  Now that work is showing fruit, and electric pickups are arriving in the marketplace with long battery lives and excellent capability.  

Ford trucks, for instance, now include the hybrid Maverick, a compact truck that is one of the most affordable EVs on the market.  The brand now has a hybrid F150, which is quite powerful. Finally, and most importantly, Ford has introduced the electric F150. Known as the Lightning, this electric truck seems sure to appeal to Millenials on multiple levels.

Likewise, luxury manufacturers are bringing many EVs and hybrids into their lineups. Here again, this represents a doubling of their chances of capturing Millennial automotive dollars. Lexus has added a hybrid model for its major SUVs, ensuring that these shoppers have both a luxury and hybrid option. Of course, there are other luxury brands rushing to market with hybrids and electric vehicles.

Returning to the old trope about Millennials who don't drive, the automotive industry's trend toward automated driving is, no doubt, more welcome to the group than it is to Baby Boomers and Gen Xers who are reluctant to give up the wheel.  

With this kind of push behind it, should we expect to see an all-electric automotive marketplace sooner in the United States? It still seems far away, but perhaps Millennials will use their collective influence to push us in that direction.