2020 was the first year that millennials bought more new cars than Baby Boomers — in fact, more new cars than any age group in the U.S. — according to research from J.D. Power.

Since then and for the foreseeable future, Millennials (born roughly between 1981 and 1996) will be a force in both the new and used auto market, having a sizable impact on how dealerships market and sell. Smart dealers are tracking millennial preferences and car buying trends.

While it was only a few years ago that Millennials were criticized as non-buyers, the oldest in that generation are in their 40s, well into their careers, and many have homes and families. Cars are very much part of the picture.

But how they buy is different from other generations. Here are some examples:

Dealer skepticism is a primary driver

Millennials don’t hate car ownership — they just hate car dealerships. This dislike is largely because showroom visits average five hours, and include haggling, paperwork, and high-pressure pitches to add on products.

The result, according to many experts, is that Millennials shop differently than the generations before them. They place more emphasis on online research and are more open to online buying. They visit a dealership at the end of their process.

That’s because Millennials shop online to know exactly what they want. They come to dealerships for a test drive armed with pricing details and specs. This helps them avoid the ‘hard sell,’ which Millennials actively despise.

In response, smart dealerships are providing a streamlined experience that respects the buyer’s time. For example, the Credit Acceptance dealer network offers full-spectrum financing, approvals in about 30 seconds and same-day funding, which allows dealerships to provide world-class service. Learn more about how to join.

Research dominates their process

Like all car buyers, millennials spend a great deal of time doing research online. But many experts say that this generation, filled with digital natives, takes their research further.

Not only are Millennials drawn to tools that compare payments, warranties, and car configurations — they also view tons of videos, including those demonstrating features, documenting test drives, and walking through vehicles’ interiors and exteriors.

Many different reports say that Millennials reject traditional advertising channels. Millennials would rather ask social media connections for input and advice, as they’re considered more trustworthy than ads.

Millennials also place a heavy emphasis on consumer reviews. In fact, they’re more influenced by this type of user-generated content than previous generations. The majority report that reviews on company websites have at least some influence when car shopping.

Need help selling to Millennials?

To learn more about their behavior, provide them with first-class service, and offer them fast and comprehensive financing, join our network of enrolled dealers at Credit Acceptance.