Millennials’ Interest in Buying, Leasing Cars Increasing

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.

Consulting firm Deloitte LLP conducted the study and it says that interest in car buying has increased by 50 percent among U.S. millennials. Now 61 percent of the demographic are considering buying a car soon, due to an increasing number of alternative powertrains and warmer response to dealerships.

The study finds that 59 percent of millennials believe their next vehicle will be powered by an alternative energy source, with hybrid powered cars being the most popular option. Many responded, saying that they would be willing to pay up to $3,000 premium for more efficient vehicles.

However, cost seems to be a big factor when it comes to purchasing decisions for millennials. Many are in favor of government-supported incentives to buy alternate fuel vehicles.

Additionally, the report says that younger car buyers are interested in car technology regardless of whether it’s something to make the driving safer or better integrated with gadgets and smartphone applications.

Finally, the report showed that the prospective young buyers are more accepting and positive towards new car dealerships. Many point out that the salesperson has a strong impact on their car buying decision, but also expect a well laid out and informative web site.