4/9/2014 - Vehicle ownership intrigue rises among ages 40 and under
The tradition of young people enjoying the increased freedom that automotive ownership engenders appears to be living on, based on a new report from one of the country's leading professional services firms.
Generation Y - defined as individuals born somewhere between the mid-1970s and the early-to- mid-1990s - are showing a high degree of attraction for vehicles, particularly cars that are technology-enabled, according to vice chairman Craig Giffi of Deloitte's automotive practice. This conclusion was determined after a survey was performed of 2,000 consumers from 19 different countries, a large portion of whom were in their 40s or younger.
Well over half (61%) of Gen Y consumers in the Deloitte report expect to buy or lease a car within the next three years," said Giffi.
He added that roughly one in four will lease or purchase a car in the next year, while a mere 8% don't expect to do either.
What will have a major impact on the automobile they ultimately end up buying, according to Giffi, is what they'll spend out of pocket.
"Affordability is the mantra for Gen Y consumers who don't already own or lease a vehicle," said Giffi. "When asked what purchasing criteria matter most to them, the majority cited cost-related items such as the vehicle's price tag, fuel efficiency and payment options."
As for what specific features of a car that Generation Y is most interested in, vehicles with alternative powertrains are particularly appealing. Additionally, the survey revealed that close to 60% foresaw themselves driving a car with an alternative engine in the next five years.
This latest report runs counter to what the Highway Loss Data Institute revealed this past October, finding that auto insurance policies and vehicle registrations were down among teenagers. The HLDI study suggested that this was largely driven by their inability to find employment.