How Millennials are changing the auto industry

Millennials are currently among one of the top car buying demographics in the marketplace.

Already, their impact on the industry has helped shift the future of the automobile industry in many ways.

During the recession beginning in 2008, older consumers ended up weathering the storm and keeping cars that they could afford.

Millennials, however, were far more likely to use services like Zipcar and ride-sharing in exchange for more freedom. Many millennials prefer this, even when they had to give up a portion of their ownership to do so.

Now that the world economy is much healthier, millennials will still continue to shape the auto industry.

Growing ancillary businesses that change habits

Believe it or not, the growth of firms like Airbnb has contributed to a change in driving patterns for people that use their product.

More importantly, many believe the Airbnb business structure could successfully influence the car rental and car buying businesses.

This could change the whole market in many ways. Simply put, there are a lot of privately owned real estate units available all over the world for rent.

Having the perfect concierge application create circumstances that will drive customers to those rental opportunities. This will become something that all industries will want to emulate.

Many businesses such as Airbnb and especially Uber are changing the auto industry and influencing the buying behavior of millennials.

As millennials grow in their purchasing power, their influence in the marketplace will become more impactful.

Providing a market for autonomous cars

Recently Waymo, the unit of Google that is testing self-driving cars in California, created an opportunity for hundreds of Arizona families to use a self-driving SUV for an extended period of time.

Families that are fortunate enough to get a free vehicle will be able to experience first-hand this hybrid technology

In a survey of Millennials, many of them answered that they would like self-driving cars. Many younger adults recognize that the concept of car ownership will change in the next few years.

In many cases, they have been the ones to forge ahead and develop companies that reflect this new reality.

Interestingly enough, the marketplace for self-driving cars remains somewhat open.

Many consider this as an enigma, expecting that all the niches would be full once the concept was approved.

Create economies of scale in auto services

You don’t have to look very far to see that companies that Millennials are working for have been at the forefront of creating auto insurance automation that makes it possible to do cheap car insurance quotes, sales, and claims with a computer only.

The savings that most companies expect to achieve from automation can make a big difference when it comes to the monthly insurance premium that most people pay.

In employment terms, however, that means that around 25 percent of the people that are working in insurance will likely find work in other industries because it will be necessary.

For those that wonder whether or not those jobs will represent a permanent loss, the answer is yes. Top executives in the insurance business right now are working hard to find another way of employing some of the same workers in a different part of the insurance business.

As most millennials dream of having their own business, developing a licensed agent opening that segues into something more may be an option for insurance companies.

Millennials are one of the more unique generations in the marketplace. They have managed to assimilate technology and create a new world that follows simpler, yet more inclusive processes — to the benefit of everyone on the buying side of the equation.

For more business tips, check our entrepreneurship section, subscribe to our weekly newsletters.