How Do Millennials Approach Car Buying?
Millennials have influenced a wide variety of global industries from restaurants, to real estate, and travel with the car industry being no different. The millennial generation has big buying power in today’s world market. What particularly sets them apart from previous generations is their sense of independence and overall approach to making commitments.
Millennials are Well-Informed
If it’s one thing millennials don’t like is to enter a situation blind. Millennials are known for doing ample research to narrow down product choices followed by even more research before making a final decision. When it comes to cars, millennials identify their preferred car based on their price points and financing options, compare specs and cross-reference their findings with consumer reports listed car complaints, and social media platforms Reddit.
They Aren’t Afraid to Ask Questions
If millennials have additional questions beyond their research, they will not hesitate to ask a customer rep for clarification. They value thoughtful customer service and enjoy meaningful interactions through their preferred channel. This has inspired auto companies to update their digital shopping experiences as well as update their online chat functionality. There are even more convenient to make service repairs less painful.
Consistency is Key
Millennials expect consistent service offerings. To achieve consistency, carmakers must aim to offer a seamless customer experience across all of its channels. This means that product information must be listed clearly and succinctly on a company’s site.
The online product information, service offerings, and inventory must correspond with what’s available at designated physical dealerships. Carmakers’ social media presence has become stronger to better connect with customers in between their shopping and maintenance experiences.
They’re Changing Car-Buying Perspectives
Just two years ago, millennials were projected to represent 40% of car buyers in 2020 based on estimated longer commutes, job security, and overall buying habits. On the other hand, owning isn’t the same indicator of social status for millennials as it was to previous generations. Millennials’ main priority when it comes to car buying is about finding safety and efficiency and less about luxury.
Gadgets and Gizmos are Appreciated
Millennials love feeling connected to the outside world which makes car infotainment systems that much more valuable. They want to be able to seamlessly sync their phones to their cars, as well as be able to stream their favorite music and find directions handsfree while on the road.
In fact, millennials are willing to spend more on a car because of its available technology. This passion for technology is inspiring car companies to invest in more initiatives like being able to make hotel and restaurant reservations through an infotainment screen as well as autonomous driving.
Buying Habits are Continuing to Evolve
As 2020 has proven, no one can ultimately predict how the car industry will expand or unravel. One thing that is certain is that millennials’ buying habits will continue to change as they shift priorities. Some prefer to own their own car while some prefer to lease.
Others may opt for specialized rideshare programs instead of having a car at all. Some like to extend their online shopping to buying a car online while others still enjoy going to a traditional dealership. Carmakers will just have to remain flexible and connected to what millennials want.