Forget Owning a Car, Millennials Like Leasing

ram 1500 leasing photo

There’s been a lot written about how millennials don’t want to drive. It’s not necessarily true, but now comes the news that unlike other generations, more of them don’t want to own cars.

Nope, when it comes time to sign on the dotted line, millennials (born from 1981 to 1997) more so than Baby Boomers and Generation X would rather lease their cars. That’s not a bad strategy for getting more horsepower for your buck.

Mercedes-Benz CLA 250 4MATIC Shooting Brake (X117) 2014

According to a study by Edmunds, millennials don’t care about long-term ownership benefits. They want bigger and/or more luxurious.

Leasing allows them to get almost twice the car they could, according to Edmunds. Typically, they’re willing to put down no more than $2,999 and don’t want a car payment above $299 per month. Buying a car outright would limit them to a $20,000 vehicle. Leasing lets them get wheels worth $35,000.

Lexus NX 200 leasing photo

That’s the difference between a Mercedes-Benz CLA and a Hyundai Elantra. (Seems like kind of a no-brainer to us.) Also, Edmunds found that millennials who acquire a new Ram truck, for example, are 30 percent more likely to lease it than the general population. Other top brands that millennials are more likely to lease include GMC (26.1 percent more likely) and Lexus (23.9 percent more likely).

Of course, you’re going to need good credit to lease a car. That could hold back some millennials just starting out post-college.

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