Around 61 percent of Generation Y -- those born between 1977 and 1994 -- are expected to buy or lease a car in the next three years, according to an annual report from consulting firm Deloitte LLP. The figure is up from 50 percent in the last year’s edition of the report. The report also showed that 23 percent of Gen Y are expected to make their vehicle purchase in the next 12 months.
Around 59 percent of those surveyed believed they will be driving an alternative-engine vehicle five years from now, up from 57 percent last year. However, around 80 percent of Gen Y having no vehicles say that they do not have one because they cannot afford it. Likewise, 75 percent said that they were not able to own a vehicle due to operational and maintenance costs.
"Affordability is the mantra for Gen Y consumers who don't already own or lease a vehicle," Craig Giffi, Deloitte vice chairman, said during a conference call. "Gen Y responders want lower-cost options, they want lower fuel costs, lower monthly payments and lower maintenance costs.”
He added that Gen Y consumers are also three times more likely than other generations “to walk away from their vehicles if the costs become too high." Of Gen Y consumers having their own vehicle, only 29 percent said that they would be willing to give up their personal vehicles.
However, 67 percent of respondents who do not own a vehicle say that walking and public transportation meet their needs, while 40 percent of them borrow vehicles or utilize car-sharing services. The report also showed that Gen Y consumers tend to be more accepting of car-sharing programs, with around 42 percent indicated that they would be willing to use such a service. However, 57 percent of them are concerned about safety, security or privacy of car-sharing programs.