Millennials are Leading the Online Auto Buying Frenzy
eMarketer estimates that the online sales of autos and auto parts will rise 15.8% this year and an additional 15.7% in 2018. This online movement is being led by millennials, which NPD Group cites as “the generational preference for comparison shopping and reliance on reviews.”
While millennials have given plenty of anxiety to automakers, the Los Angeles Times found that this generation hasn’t given up on cars for ridesharing services such as Uber; they are just simply delaying ownership.
“When you think about it, people are having families later, they’re getting married later, they may be leaving their home later — all of those factors,” said Brian Maas, president of the California New Car Dealers Association. “So it makes logical sense that they might buy their cars later too.”
This year, a study from J.D. Power’s Power Information Network reported that the share of millennials in the new car market jumped to 28%. In California, the country’s No. 1 car market, millennials outpaced baby boomers for the first time.
But as millennials take car buying online, the automotive industry needs to realize that to millennials, a car isn’t just a mode of transportation, it is an expression of individuality – matching their vehicle to their personality.
This generation grew up with modern technology and having a choice is a way of life. Millennials want to choose the vehicle’s color schemes, they want to mix and match both the inside and outside of their vehicles.
As the automotive industry begins expanding its online marketing to millennials, it must consider making products personalized, customized and most importantly, immediately available.