Consumer Interest High Amid Price Concerns
Consumer interest in buying versus leasing varies by generation, affordability being a main driver.
Four in 10 U.S. adults indicate they plan to buy a car, most within the next year. And 65% of those prospective buyers expect to trade in their current vehicles.
The purchase plans were shared in a Transunion survey of over 3,000 consumers.
“This intent to purchase points to solid underlying market demand and could meaningfully increase used‑car supply as shoppers replace existing vehicles,” said TransUnion Jason Laky, executive vice president and head of financial services for the information and insights company.
Interest in buying versus leasing varied across generations, according to the survey. Seventeen percent of generation Z and millennials expressed interest in leasing, while only 7% of baby boomers shared that sentiment. Of consumers planning to trade, 87% showed an intent to buy and a 13% to lease.
“Audience segmentation and credit‑based targeting tools enable lenders to pinpoint affordability‑driven consumers across generations who are most likely to be ready to enter the auto market in the near term,” said TransUnion senior vice president of auto and mortgage business leader Satyan Merchant.
The study cites affordability as the most significant obstacle for consumers not planning to buy. And price remains a top concern of consumers not interested in purchasing an electric vehicle this year, along with limited charging infrastructure, range anxiety and a preference for combustion engines.
Only 16% of respondents expressed an interest in EVs, compared to 33% for hybrids and over 50% for traditional gas-powered vehicles.