Millennials leasing vehicles more often than older Americans [Video]
Posted on Monday, August 17, 2015 at 10:58:42 AM
Millennials are more likely to lease their cars than older Americans, an option that helps them purchase large and luxurious vehicles without breaking their budgets.
Auto financing can be difficult for younger people who don't yet have the financial wherewithal to afford the sort of vehicles they want while sticking to their budgets. For this reason, millennials turn to leasing more often than older Americans, according to data car-buying platform Edmunds culled from car registration data provided by Polk.
Leasing accounts for 28.9 percent of all new car purchases, Edmunds founds. The lease penetration rate for the entire car-buying population, meanwhile, is 26.7 percent. Over the last five years, leasing by millennials has increased 46 percent.
Young car-buyers are also more likely to lease some brands than others. For example, Edmunds took a look at lease penetration by brand, and found millennials are more likely to lease Ram, GMC and Lexus vehicles than the overall car-buying population.
The car-buying platform also broke down lease statistics by location, and determined that in the Midwest, millennials are more likely to lease than anywhere else.
The only sort of vehicles that millennials aren't leasing more often than the overall car-buying population are compact cars. Besides those vehicles, though, millennials are increasingly turning to leasing as an affordable, long-term financing option for their vehicles.