Deloitte forecasts 61% of Gen Y will buy or lease cars in next 3 years

Article by Anita Panait, on January 20, 2014

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.

If you liked the article, share on:

Comments

Recommended

A few years ago, Lotus tried to take on Porsche. They had a five-car plan to go against competitors like Ferrari and Aston Martin. Though it did not go well,...
by - October 23, 2017
To keep the Nissan Maxima interesting, the Japanese automaker gives the 2018 model year a number of small tweaks. Some of these include standard Android Auto, which is a new...
by - October 23, 2017
It looks as if Chevrolet has everything planned out in terms of production. Firstly, they have plans of introducing the Corvette ZR1 in a few months, which will then be...
by - October 23, 2017
While Tesla Motors continues to struggle with regards to the assembly of its much awaited Tesla Model 3, investment firm Oppenheimer & Co. is confident that its previous production estimates...
by - October 22, 2017
It seems that BMW’s high-performance division -- BMW M – still has not warmed up to front-wheel drive vehicles. So those who had been looking forward to BMW M vehicles...
by - October 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries