Millennials were significantly more likely than the car-buying population at large to lease a new auto during the first six months of 2015, according to Edmunds.com.
The Santa Monica, Calif.-based, automobile-focused consumer research firm analyzed car registration data and found that leases accounted for 28.9% of millennial car purchases. This compared to an overall lease penetration rate of 26.7% and represented a 46% increase in millennial car leasing over the last five years, the statisticians added.
The car research firm attributed the trend to millennials' awareness of their budget limitations and ability to lease more car than they would be able to buy.
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"Most millennials understand and accept that they're on a tight budget and that they need to stick to it," Edmunds.com Director of Industry Analysis Jessica Caldwell said. "But it doesn't mean that their financial constraints limit them only to the most basic vehicles to get from Point A to Point B. If they see a chance to get into a nicer car while staying within their budget, they are likely to explore that opportunity. In most cases, leasing opens the door to the bells and whistles that they couldn't otherwise afford."
Edmunds.com pointed to a June survey of millennials in which 57% said they would put no more than $2,999 down toward a new car purchase and 54.9% said they would pay no more than $299 per month.
By staying within those parameters, millennial car shoppers who wanted to finance an auto purchase would be limited to vehicles priced under $20,000. But if they leased a car, millennial car shoppers would be able to afford a car or truck priced up to $35,000.
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