MILLENNIALS AND THE AUTOMOTIVE INDUSTRY: A COMPLICATED RELATIONSHIP
Contrary to popular belief, Millennials use modes of transportations other than Uber, hover-boards, and sprinting for cardio. In fact, Millennials are actually spiking the car leasing industry with activity in recent years, in addition to dropping activity in car financing. So Carvoy couldn’t help but wonder – why?
First, let’s take a look at some common characteristics that Millennials share. Firstly, they are super optimistic about their future financial standpoint despite being raised in an economic recession. In fact, recent studies show that over half of them deem that their personal economic situation will improve within the year. Millennials also generally like to impress people with their lifestyle and view style as integral to their social status. And, most obviously, Millennials are most known to be extremely tech savvy and hyper connected. So how do these tie into Millennial car obtaining habits?
Well, Millennials’ demand for cars is definitely present out of need, rather than want. This is the generation that is graduating college, getting married, buying homes, and entering the workforce. Additionally, cars mollify Millennials’ need to feel connected, as surveys confirm that cars are important to their social life. So why lease instead of buy? Simple – because they actually cannot buy. Millennials aren’t lacking interest in cars – they’re lacking funds. Leasing a car is cheaper than financing a car by a wide margin, because with leasing a car you are essentially only paying for what you use out of the car, not the actual value of the car itself.
Moreover, leasing being cheaper than financing overall allows Millennials to lease a Mercedes for the price of a Toyota. Leasing permits Millennials to drive cars that are consistent with their all-important image and style while maintaining a realistic price point.`
What differentiates Millennials from other generations as well is the amount of meticulousness and pragmatism they approach the research process before even entering a dealership. Their tech-savvy nature pushes them toward the Internet for reviews, comparative analyses, and general market research.
Millennials are hungry for a platform that allows them to shift directly from their research to their lease, and this is the market that Carvoy is tapping into. The convenience with which Carvoy conducts its business is unmatched by dealerships and even other online platforms, making it a serious player in the automotive industry for this generation.
Carvoy is, quite literally, paving the road for a new generation of car leasing, one Millennial at a time.
Check out our exclusive lease deals here.