The automotive industry may be reeling from the market’s widespread shift towards SUVs and crossovers, which has seen carmakers like Ford and General Motors abandoning regular passenger cars entirely. But there may be light at the end of the tunnel, as a study by insurance comparison site QuoteWizard suggests that millennials in the United States are bucking the trend and buying more sedans.
Based on the portal’s insurance quote data for users aged between 22 and 37, the top ten cars being driven by younger buyers is dominated by vanilla four-doors, the list being topped by the Honda Accord. The next five cars are also sedans – the Nissan Altima, Honda Civic, Toyota Camry, Hyundai Sonata and Chevrolet Impala occupy the top six slots, with the top non-sedan offering, the Ford F-150, only seventh on the list.
Rounding off this group are the Toyota Corolla, Ford Focus and the only SUV in this group, the Jeep Grand Cherokee. But if you’re thinking that millennials are flocking back to sedans because they want to, think again – QuoteWizard says that they are only buying these cars because they are cheaper than SUVs or trucks, with the average starting price of the cars on the list amounting to only US$23,829 (RM97,000).
The site says that while those in this age group are earning more than ever before – an average of $69,000 (RM281,000) a year, says US fact tank Pew Research, they still earn less than their baby boomer peers and carry an average of $36,000 (RM147,000) in debt. But even that doesn’t tell the full story.
You see, millennials are also moving closer to cities, giving them more options to travel to work, such as public transport, ride-sharing and electric bicycles or scooters. This makes them less reliant on personal cars, so they spend less on buying them in the first place.
So there you have it: millennials are buying more sedans, but not for the reasons you might think. What do you think – do you agree with this conclusion? Sound off in the comments after the jump.
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