Ride-sharing services such as Uber and Lyft has made it easier for workers to get from place to place without having their own car. Taking mass transit is also a more practical option than driving to work, because it means saving a big buck.
Does that mean that cars are just another luxury item that Millennials would much rather live without? Not necessarily. In fact, Millennials are still spending on cars; they’re just choosing to spend on them differently.
A New Lifestyle Shift
Less and less adults are choosing to settle down in a single place for prolonged periods of time. According to Dr. Alexa Delbosc, a researcher on car ownership, Millennials are opting for more nomadic lifestyles: more of them are working part-time and travelling, rather than going straight into full-time work or marriage.
Auto Leasing Provides a Sense of Flexibility
Car ownership comes with a hefty price tag. Auto leasing, however, gives buyers the opportunity to own a nice set of wheels at a lower price — in fact, Millennial spending habits reflect their preference for leasing luxury cars such as BMW, Lexus and GMC.
A study conducted by Auto Trader shows that 32% of Millennials like to ‘impress people with their lifestyle’ while 40% claimed that they liked to ‘show off their taste’. Leasing a car is the perfect opportunity to switch cars every now and then, and to find the vehicle that suits a person’s current lifestyle.
Constant Upgrades Are the Norm
Just like a smartphone, getting a replacement vehicle every year is the norm. Updating to the latest technology can be a lot of fun, especially because some GM and Buick models come with their own Wi-Fi hotspots, while others come with seats that massage and heat the driver. Though buyers don’t own the car at the end of the lease, owning it during the length of the contract is definitely worth it.
For Millennials, car ownership is all about getting the best vehicle to suit their current lifestyle. Those in search for a car may want to get an auto lease, whether for a new or used car, depending on their preference and needs.