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Generation Y is known for being a tough market to crack for automakers, but a new study suggests “millennials” are looking to buy or lease a new car within the next three years.
According to a recent study, car buyers between the ages of 16-32 actually enjoy visiting dealership lots more than older generations, though they dislike dealing with car salesmen.
Generation Y has been a huge pain in the neck for most automakers since youth don’t seem to be interested, or simply can’t afford to buy a new vehicle, and a new study hints at why young people aren’t interested in driving.
10. Acura TSX - 34.3%
How do you get Generation Y interested in cars? To answer that question perhaps the best move is to take a look at what cars they do already like.
Thanks to new stats provided by J.D. Power and Associates we’ve compiled a list of the top 10 cars with the highest percentage of buyers aged of 16 to 35 in 2012. And if there is one common theme, it’s that Generation Y isn’t big on domestics, with just one vehicle from the Big 3 making the list.
Kicking off the top 10 list is the Acura TSX, where 34.3 percent of its buyers were between the ages of 16 to 35. The entry-level sedan offers luxury amenities at a budget price, while providing owners with the reliability and comfort that Acura is known for. The Acura TSX had an average MSRP (the average price across all trim levels) of $32,251 last year.
Young people today seem to be losing their passion for driving, and a University of Michigan study claims that only 60 percent of Americans aged 17 to 19 have a license.
BMW and other luxury automakers, are making an active effort to work more closely with those in new media. The idea is that by courting bloggers and tweeters, they stand a better chance of reaching a new group of younger buyers that can’t be targeted through traditional media platforms such as TV, radio and print publications.
Generation Y has come of age and are now setting their sights on what new car to buy. And according to research firm AutoPacific, younger car buyers are choosing vehicles made by Toyota, Honda and Ford.
Also among the top 5 brands are Chevrolet and Nissan. Making their way onto the 2010 Gen Y (people born around 1983) list are Kia and Hyundai, who squeezed out Mazda and Jeep for a coveted spot on the list.
“The fact that Generation Y has a bigger footprint in brands like Hyundai and Kia than in past years means these brands are definitely doing something right to gain Gen Y’s attention,” says George Peterson, president of AutoPacific.
The Ford Fiesta is popular with this generation, not only because of its size and cost, but also because it’s featured sponsorship on popular shows such as American Idol and various online contests and promotions.
You’ll find the results of AutoPacific’s top 10 list after the jump.
We’ve been seeing a glut of stories lately about Generation Y and their increasing distance from the automobile. A new study shows that while Generation X made up 21% of the miles driven in 1995, Generation Y made up only 14% of them in 2010.
The usual reasons have been trotted out, like the economic downturn, the rise of electronic gadgets replacing the car as a status symbol and the graduated licensing program making it harder for new drivers to get on the road. The latest trend of prolonging education, via grad school or taking longer to do an undergrad degree, also means that owning a car becomes more difficult.
Interestingly, car sharing services like Zipcar have been cited as an obstacle to car ownership, but is also seen as a more attractive alternative, meaning that the costs of car ownership, rather than driving itself, is what’s really bothering young people.
[Source: Kicking Tires]