Gen Y’ers Second Only to Baby Boomers in Car Purchases

Baby boomers (people born between 1946 and 1964) remain America's largest car-buying group with a 38% share of new-car purchases.

But Gen Y consumers (1977-1994) the group often described as having lost interest in owning cars has now surpassed Gen X (1965-1976) in car-buying for the first time, according to J.D. Power.

The firm says Gen Y accounted for 26% of U.S. new-car sales in the first half of 2014 compared with 24% for Gen X. Last year baby boomers, Gen X and Gen Y represented 40%, 24% and 23% of the auto market, respectively.

Power says Gen Y buyers are becoming a bigger factor in the car market as their incomes climb and their families grow. The firm counsels carmakers to pay closer attention to Gen Y expectations in vehicle design, marketing techniques and the sales/service experience.

Data from the Power Information Network, which monitors sales trends at the dealership level, show that Gen Y buyers favor compact cars. The favorite body style among Gen X consumers is the compact SUV.