Automotive Purchase Intent on the Rise
- The summer driving season is well underway, with the average age of vehicles on U.S. roads now nearing 13 years. Over the past several years, consumers have delayed new vehicle purchases—initially due to pandemic-related supply shortages, followed by concerns around a potential recession, and more recently, fears of inflationary pressures linked to tariffs.
- However, Occam has detected a notable shift in consumer sentiment. Over the past year, there has been a significant increase in the number of consumers expressing intent to purchase or lease a new vehicle within the next 3, 6, and 12 months. Correspondingly, Occam has observed a marked decline in the share of consumers planning to delay their vehicle purchase for more than two years, as well as those who previously indicated no intention to buy or lease a new vehicle at all.
- This surge in near-term purchase intent is particularly pronounced among younger consumers. More than 45% of respondents between the ages of 18 and 44 (data not shown) plan to purchase a new vehicle within the next 12 months.
- Given this demographic’s strong preference for electric and hybrid vehicles over traditional internal combustion engine (ICE) vehicles, intent to purchase within the EV/hybrid segment is even higher than the general population (data not shown), highlighting an important trend for automakers and investors to watch. Subscribe today for the most recent data to stay ahead of the curve.
