The Millennial generation:
- Millennial age is around 18-34, born mid 1980s-on to be growing up through the Millennium year 2000
- Millennials’ car leasing enquiries surged in 2015
- Millennials make up more than a third of leasing enquiries to Vanarama Cars
MILLENNIALS rising in leasing demand is a new trend revealed in research from Vanarama Cars – and that applies to cars as much as property or music as they are less concerned with ownership than older generations.
Analysing more than 700 car leasing enquiries made in 2014 and 2015, the vehicle leasing company found that the proportion of enquiries from motorists of millennial age (18-34 at time of enquiry) has increased significantly. In 2014, just over a fifth (22%) of all car leasing enquiries came from millennials, but by the end of 2015 this had risen to more than one in three (35%).
Over the same period, the proportion of enquiries from Generation Xers (aged 35-54 at time of enquiry) dropped from 63% to 56%, while Baby Boomers (aged 55-70) fell from 16% to 9%.
As well as identifying an upturn in leasing enquiries from millennials, Vanarama Cars has revealed the most popular cars among this audience in 2015.
Over the 12 months, 8% of enquiries from millennials were for the Audi A4, while 10% were for the Ford Focus. However, the car most millennials wanted to lease was Nissan’s sporty and compact crossover, the Qashqai.
Andy Alderson, chief executive officer and founder of Vanarama Cars, said: “When it comes to depreciating assets, the sensible thing is to lease rather than buy. It’s good to see that millennials are waking up to this, perhaps more so than the older generations.
“My daughter, who’s a millennial, has said all along that she just doesn’t understand why someone would buy a car outright when they could lease, not have to worry about it breaking down all the time, and spend the chunk of money they’ve saved on travelling or saving for a deposit on a house.
“We’ve seen it in the office ourselves: many of our staff who are millennials are getting excited about leasing their next car and getting a model that’s much better than the last car they bought second-hand. Several people in their early 20s in the business are now driving BMWs!
“We hear customers say it on the phone as well: that they are excited about what vehicle they can finally get, and that leasing helps them spread their cash and plan long term.”