Vehicle registrations among younger car buyers are declining—presenting some unique challenges for automakers and dealers when it comes to marketing to those consumers.
The details: Pricing is the biggest factor in the decline of younger new car owners, with new vehicle registrations for consumers between the ages of 18-35 falling from 12% in Q1 2021 to below 10% in the past two quarters, according to S&P Global Mobility.
Monthly payments for cars have increased by 30% in the past four years.
Some new vehicles now carry monthly payments exceeding $1,000.
More younger car buyers are opting for subscription-based car-sharing options.
The monthly cost associated with just owning a vehicle is simply too much for many younger consumers to bear. On the other hand, adults aged 55-plus have maintained their 50% share of vehicle registrations since Q2 2023.
Why it matters: Young buyers represent the highest lifetime customer value, but the industry is losing them at a critical moment. As this demographic shifts toward subscription services and used vehicles, automakers risk building their future around aging customers who won't be buying cars much longer.
Between the lines: The news isn’t all doom and gloom as it relates to younger car buyers—with adults aged 18-34 still accounting for nearly 1.1 million new vehicle registrations from April 2024 to March 2025. And what are they buying?
Compact utility vehicles top the list with 21% of segment volume—more than double their 9.9% share of total volume.
Compact cars hold the distant second spot at 13% for new vehicle registrations for younger car buyers.
Adults ages 18-35 are also deviating from hybrid trends, showing more interest in fully electric vehicles.
What they’re saying: “Monitoring the decline of young car buyers is essential to shape effective marketing investment strategies. As their share of new vehicle registrations shrinks, understanding the unique challenges and purchasing triggers for this group becomes increasingly important,” writes Jason Jordhamo, the Marketing Director for Polk Automotive Solutions (an S&P Global Mobility company)
Bottom line: Given the value of younger buyers to the car market, understanding their interests and challenges associated with owning a vehicle could prove hugely beneficial to companies looking to grow their market share in the business.
A quick word from our partner
CarGurus Listings packages now come with data-driven reports tailored to your unique strategy and local market.
Backed by insights from over 40 million monthly visits to the #1 car shopping site¹, you’ll get actionable recommendations that help drive real results.
Maximize visibility with custom pricing guidance based on local shopper behavior
Increase margin by identifying when you can raise prices without reducing visibility
Move inventory faster with acquisition recommendations grounded in local demand
Don’t wait – dealers using our deal rating report have seen up to a 42% increase in daily VDP views².
Sources: 1. Similarweb, Traffic Report (Cars.com, Autotrader, TrueCar, CARFAX Listings (defined as CARFAX Total visits minus Vehicle History Reports traffic), Q1'25, USA. 2. CarGurus analysis of US dealers that changed a vehicle price based on NBDR recommendations compared to vehicles without an NBDR- informed price change from Nov 2023 through Dec 2024.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
No-BS insights, built for car dealers. Free, fast, and trusted by 55,000+ car dealers.
