According to Automotive News millennials are developing a taste for expensive automobiles, partially fueled by the availability of cheap credit.
Jaguar finds itself positioned among the top 10 brands favoured by millennial buyers, along with Lexus, Cadillac, Acura and Buick. Data shows that the 18-34 demographic leases 60 percent of their luxury vehicles, 10 percent more then other demographic buckets.
Leasing data suggests that millennials are in fact interested in car ownership despite the rhetoric otherwise. After baby boomers, millennials represent the second largest group of buyers. However this is more to the fact that the boomers are the parents of the millennials meaning the pool will be naturally inflated vs other demographic buckets.
Millennials prefer a max monthy nut of $300 and typically put down around $3,000. Leasing allows them to get the car they want RIGHT now, with features that are impressive and potentially out of their price range. Not to mention a new car every 2 or 3 years!
“If they see a chance to get into a nicer car while staying within their budget, they’re likely to explore that opportunity,” said Jessica Caldwell, director of industry analysis at Edmunds. “In most cases, leasing opens the door to the bells and whistles that they couldn’t otherwise afford.”
With an appropriate pricing strategy Jaguar could find themselves big winners in the US when the XE arrives in stores.