New Survey Indicates Millennials Are Opting for Cheaper Vehicles
Photo: TaxRebate.org.uk
Millennials are quickly becoming a dominant consumer group in the U.S., especially since there’s an estimated 71 million of them, per QuoteWizard. The auto industry is just one market this group impacts. From boosting RV sales to advocating for more public transit options, this demographic is definitely shaking up previous trends.
Now, it turns out that millennials are choosing lower-priced vehicles than previous generations, according to a new survey from QuoteWizard. The study evaluated data from auto insurance quotes for millennial drivers in the 22- to 37-year-old age bracket. The Chevrolet Impala ranked among the top 10 most popular cars for this demographic.
Smart Buyer: Discover whether purchasing or leasing is best for you
The 2019 Chevrolet Impala
Understanding millennials
ValuePenguin’s Tamara Holmes shared a few potential reasons why millennials might be prioritizing cheaper vehicles. For starters, millennials have more debt than previous generations. The average millennial has $36,000 in debt and allocates 34 percent of their monthly income to paying off this debt, according to Northwestern Mutual’s 2018 study. Credit cards and student loans were the top two sources of this debt.
Secondly, millennials make less money and have less disposable income than older generations. Per stats from Pew Research Center, $69,000 was the median adjusted income for households headed by millennials, compared to $85,800 for Generation X-headed households and $77,600 for baby boomers.
Thirdly, this demographic has more access to public transportation, so having a car is less of a priority. Current studies, like one from Rutgers University and the City University of New York, indicate that millennials are happiest when living in large cities. These settings usually have such a variety of public transit options that committing to a monthly car payment seems unnecessary.
Photo: State Farm
An influential future
Stay tuned in the days ahead as we keep you posted on any other millennial trends as it relates to the car world. And, if you’re searching for an affordable new ride, definitely check out the Chevy Impala that ranked so highly on Quotewizard’s list.
Peace of Mind: Learn the advantages of buying a CPO vehicle
News Sources: ValuePenguin, QuoteWizard
The News Wheel is a digital auto magazine providing readers with a fresh perspective on the latest car news. We’re located in the heart of America (Dayton, Ohio) and our goal is to deliver an entertaining and informative perspective on what’s trending in the automotive world. See more articles from The News Wheel.