Younger Americans Favor Used Cars

By Staff Writer March 24, 2022

In a survey of 2,000 American adults, 71% of consumers ages 18-40 say they would rather buy a used car than a new one, even as used car prices hit record highs.

For this age group, sustainability is a key motivator with 63% of used car shoppers stating they would prefer a used car specifically because it’s more sustainable and draws on fewer resources than building new cars, the poll found.

“Sustainability has become a key priority for Gen Z and millennial consumers, and it’s impacting the way they think about cars and their car-buying decisions,” said Doug Timmerman, president of Dealer Financial Services, Ally Financial. “Whether it be through purchasing an electric vehicle, or a used car, the goal remains the same: to lessen environmental impact.”

Eighty-two percent of consumers ages 18-40 agree that electric cars are the future, with 72% saying they’d consider purchasing an electrified vehicle, compared to only 28% of drivers ages 57+. However, cost is still a consideration as nearly half (45%) of Gen Z and millennial consumers said cost could hinder their EV purchase.

With used cars and electric vehicles gaining in popularity as sustainable options, consumers recognize any vehicle choice brings additional expenses. To keep expenses under control in uncertain times, 81% of younger consumers indicate they are more inclined to purchase a vehicle service contract (VSC) due to the pandemic.

“There’s a common misconception that electric vehicles have minimal service and repair needs, but that’s not necessarily the case,” Timmerman said. “Whether consumers are purchasing EVs or used cars in an effort to be sustainable, vehicle service contracts can provide peace of mind.”

The survey was conducted by OnePoll, a British research company, on behalf of Ally Financial.

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Last modified on Wednesday, 30 March 2022 17:02