The millennials, the generation now targeted by the automakers to provide the growth for the coming years, are increasingly lured towards more expensive and even luxury rides.
And the premium autos are in their grasp thanks to affordable leases that spread on longer periods. Lexus, Jaguar, Cadillac and Acura are among the top ten brands tapped by leases within the millennial age bracket, while Edmunds.com, an auto pricing website adds that other near-premium makes such as Subaru, Mini and Buick are also targeted. The 18- to 34-year-old group also tends to use financial aids such as leases more than other buyers, with leases making up 60 percent of auto luxury sales for the generation. Data provided by leases is another sign that American millennials – also called Generation Y – actually endorse car purchasing – moving against numerous studies and predictions they would give up driving in favor of public transportation, car sharing, bikes or even walking. Millennials also account as the second-biggest car buyer group in the US, following their baby boomer parents, with forecasts of purchases or leases of close to two million autos in 2015.
The pricing website has found a typical millennial will spend up to $300 per month for a car and will give an upfront of maximum $3,000, with leasing among the only choices for getting the model they really want. The technology-hungry generation is also allowed through the procedure to have a new vehicle every three to five years. And, of the top ten brands they lease, only two are actually mainstream – Toyota’s entry-level Scion and Fiat Chrysler’s Ram pickup marquee.