Technology drives car demand for Millennials

The age group, otherwise known as Generation ‘Y’, are willing to spend more than 50% extra for new technologies in cars than post-War ‘baby boomers’.

Spending an average of $3,703 (£2,470) on technology per vehicle, 18 to 36-year-olds out-bought customers over 50-years-old who spend just $2,416 per vehicle, reports Bloomberg.

Millennials are now set to become the largest US consumer group, as they rebound from record student loan burdens and fallout from the worst recession since the 1930s. They are the second-biggest generation among new-car buyers, accounting for 28% of sales this year, behind 37% for boomers, said J D Power.

In a statement its executive director of driver interaction and human-machine interface research, Kristin Kolodge said: “The auto industry is standing on its head to keep technology up to consumers’ new standards. Those who haven’t done so have seen negative feedback from consumers.”

But rather than infotainment packages and fancy energy saving technologies, most car buyers are interested in safety features possibly, said Kolodge, because of low fuel prices and improved vehicle economy.

Consumers had little preference in choice for technology packages linking smartphones to the car between Apple’s CarPlay or Google’s Android Auto application. Luxury vehicle owners tend to have Apple products, while Androids have a closer split with Apple for lower priced cars, Kolodge said.

J D Power said the online survey, conducted in this year’s first three months, included more than 5,300 people who had bought or leased a new vehicle in the past five years.


Leave a comment

Your email address will not be published. Required fields are marked *