Report: Car-Buying by U.S. Millennials Will Surge

Three in five of America's Gen Y consumers those born between 1977 and 1994 plan to buy or lease a new vehicle in the next three years, according to Deloitte LLP. Only half of those polled a year ago expected to do so.

The consulting firm's annual survey comes amid concerns that Millennials are less interested in buying vehicles than previous generations, preferring devices such as mobile phones and tablets.

Some 23% of Gen Y members expect to make a car purchase in the next 12 months, according to the study. Deloitte says 59% of those surveyed believe they'll be driving an alternate-engine vehicle five years from now.

Among Millennials who don't own a car today, 80% cite affordability as a reason. Three in four point to operational and maintenance costs and say their travel needs can be met by walking or using public transportation.