Lightstone’s analysis of data gleaned from their transactional systems shows that in 2017 just 2% of financed new Light Vehicle sales were being bought by buyers under the age of 30 (early adulthood) – but this has jumped to 15%.
The established adulthood band (31- to 40-year-olds) is now the largest segment financing new vehicle purchases with 29% of the market, up from 25% in 2017 – and where it placed third out of five age bands.
Just as younger buyers have increased their share of the vehicle finance market, older buyers have lessened in percentage terms. The pre-retirement band of 51- to 65-year-olds, which made up 35% of sales in 2017, and was the biggest consumer group financing new vehicles, now accounts for 26% in 2024.
The second largest age group in 2017 was the midlife band of between 41 and 50 years of age and its 28% of the market has dipped marginally to 27% in 2024, but is still the second largest band.
The 66+ age group is down to just a 2% share in 2024 from 9% in 2017.
Age bands of buyers of financed new vehicles
In the financed used Light Vehicle segment the general trend since 2017 is not much different, with significant growth among those in the early adulthood phase, while the share of over-50s opting to finance a used vehicle is declining steadily.
The difference in the Used Vehicle market is that there is a noticeable drop-off in the share of the midlife band, which wasn’t as evident in the New Vehicle segment, and the established adulthood group is reasonably constant, whereas among financed New Vehicles this group saw growth as well.
Age bands of buyers of financed used vehicles
Overall, the financed Light Vehicle age landscape has changed fundamentally over the last seven years, with the early adulthood group showing substantial growth, the established adulthood band remaining steady, and the three age-groups catering for buyers over the age of 40 all experiencing a diminishing share of these sales.
Age bands of buyers of financed vehicles
The shifts in consumer behaviour could be attributable to a number of reasons, including:
- consumers in the more mature age bands opting to hold onto their vehicles for longer before making that new purchase and/or using other methods/avenues to make that vehicle purchase;
- the younger age groups opting to change their vehicles more frequently;
- a change in outlook as to what big-ticket purchases to prioritise in the wake of the pandemic.