|August 19, 2014|
Previously published on August 14, 2014
Auto sales continue to climb, rising almost 10% from a year prior. But one metric in particular caught our eye here at the Dashboard: Generation Y buyers exceeded Generation X buyers for the first time...ever. Specifically, for the first half of 2014, Generation Y bought 26% of all new vehicles, compared to 24% of Generation X. (Don’t worry Baby Boomers, you still lead at 38%.)
What does this mean for the industry? It is getting younger. Everyone will assume that these younger buyers want the best technology in their cars. Others note that these younger buyers are fixated on price. Considering the rise of student loan debt, this should not be a big surprise.
But how will the industry respond? Will we see ever more technology jammed into cars? Will we see more cars at lower price points? Will dealers change their sales pitch? Will OEM’s allow more, easier customization? Will there be more leasing? Will the rise of car sharing negatively impact sales?
Whoever figures these answers out first, will get the next big crack at what is now the second largest car buying segment, and growing.