Millennials are buying fewer cars after a surge last year due to economic struggles that continue to plague the younger generation, according to an Edmunds.com analysis.
Last year, buyers aged 18 to 34 bought 12.6 percent of all cars purchased, up from 10.8 percent in 2011, said a press release. The overall auto sales market grew, partly boosted by car sales to younger drivers. But year-over-year, the number of new car purchases by Millennials had fallen to 11.4 percent by August.
"Millennials haven't seen the same benefits in the labor, housing and stock markets that Baby Boomers and others have enjoyed over the last year," Edmunds.com chief economist, Dr. Lacey Plache, said. "As a result, younger Americans across all income levels have had trouble pulling together the financial motivation to buy a new car."
Employment is the main issue, as significantly fewer jobs were available this year for those aged 25 to 34. In 2012, an average of 30,000 jobs were created each month for this age group, compared with only about 4,000 jobs each month this year, according to Plache.
The slowing housing market has also negatively affected car sales. Only 500,000 new households were formed per month in the first half of this year, a substantial decrease from 2012, which saw an average of 1.4 million new households each month.
"Young adults living at home with parents or with roommates typically have less need for their own cars because they can share them with other members of their households," Plache said. "But young adults living on their own are more likely to need their own cars--and they're more likely to be able to afford them."
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