Report: Millennials Love To Lease Cars

Chevrolet dealership (Credit: Chevrolet )

According to a recent report from Automotive News, leasing is coming back in a big way, and Millennials are to thank for the trend. That’s right, the generation that so many journalists love to characterize as not wanting to have anything to do with cars is being attributed with a rise in leases.

Edmunds.com put everything in perspective with some cold, solid numbers. For July of this year, 28.9 percent of all vehicles purchased by Millennials were leased. Across the entire automotive industry, 26.7 percent of all buyers opt for a lease instead of a straight-up purchase. That’s just a snapshot – there’s a big general trend among younger car shoppers toward leasing. When you look at the last five years of data, leasing increased by 46 percent for Millennials. For all buyers, leasing increased by 42 percent.

It shouldn’t be shocking that Millennials like to lease cars. While so many ill-researched reports have painted the youth of America as being apathetic when it comes to cars, the truth is that the lack of vehicle ownership has more to do with finances than a lack of desire. Leasing helps alleviate some of the financial stress of getting a means of transportation, especially something nicer than a Mitsubishi Mirage. That’s backed up by a poll taken by Edmunds.com, which found that more than 50 percent of Millennials think that $299 per month is the most they will ever pay for a car of any kind. Leasing allows a person to get a much nicer vehicle under those kinds of financial constraints.

Millennials are known for not settling down, and leasing vehicles helps support that kind of a life choice. Instead of committing themselves to a long-term vehicle ownership scenario, a lease means younger drivers can avoid getting bored with their means of transportation. It also allows them to constantly have the latest in automotive technology, especially infotainment features.

There are likely many other reasons why Millennials like to lease cars. Considering how large the generation is, this trend could have some very real lasting effects for the automotive industry in the United States.