Younger buyers are disappearing from the new-car market, and they are unlikely to return in significant numbers, according to S&P Global Mobility.
Rather than chase them, dealers need to focus on strategies that at least keep those buyers coming to the dealership for other reasons than a new-car purchase, an SPGM analyst tells WardsAuto.
“Used inventory and service opportunities would be just another way of engaging these folks and kind of bringing them into the brand,” says Jason Jordhamo, marketing director at Polk Automotive Solutions, a product suite within S&P Global Mobility.
The share of new-vehicle registrations by adults aged 18 to 34 fell from 12% in the first quarter of 2021 to 9.9% in the first two quarters of 2025, says S&P Global. During the same period, the proportion of those aged 55 and over increased from 44.8% of new registrations to 48.6%.
Many factors contribute to the drop in younger buyer registrations, but “the big one” is affordability, including available inventory within an appropriate price range, says Jordhamo.
A Long Car-Buying Window
To be sure, the 18-34 cohort still accounted for nearly 1.1 million new-vehicle registrations from April 2024 to March 2025, says SPGM.
And “this demographic does still represent the greatest value because they will be around longer,” says Jordhamo.
But they have other transportation options besides car ownership that previous generations lacked, he says, including Uber, Lyft and Rideshare
So, what is a dealer to do? Dealers looking to sell to the 18-to-34 cohort should first and foremost look at their available inventory and how it matches those buyers’ preferences, he says.
“If you have the inventory that aligns with them, that is where you can take share,” says Jordhamo.
That means smaller vehicles. In the first quarter of 2025, compact utility vehicles accounted for 20.8% of all new retail registrations for those 18-34, according to SPGM. Compact cars ranked second with 13.1%.
“Notably, younger shoppers are diverging from broader hybrid trends, showing a preference for fully electric vehicles,” says SPGM.
Used and Service Can Draw Them In
They may not be able to afford a new vehicle, but younger buyers do represent a growing share of used-vehicle customers.
In the first four months of 2025, they accounted for 15.7% of used-car registrations, up from 15.1% of used-car registrations for all of 2023, reports SPGM.
A dealership can dive into its used inventory database to find vehicles that would appeal to those younger customers, Jordhamo suggests.
Service is another avenue to get younger buyers into your dealership. Target those who bought your brand but from another dealership with service specials, he says.
Then, when they buy their next car, hopefully, it will be from your dealership.
“Service is a great way to get them into your customer database,” says Jordhamo.
Tweak Your Marketing Strategy
Dealers also need to adjust their marketing strategy, suggests SPGM. Rather than focus marketing on a specific demographic, prioritize in-market shoppers.
Dealers should also invest more in addressable media – media that streams and serves different ads to different customers.
That is a good way to reach younger buyers and, while more expensive, the approach typically delivers a higher return on investment and ad spend, according to SPGM.
“Understand your inventory, and who can and can't buy it right, and then maybe focus your investments in addressable in-market audiences versus covering the market perspectives based on age and gender, which are losing their effectiveness overall,” says Jordhamo.
