Who's behind the boom in new-car sales?
Baby boomers. And it's been that way for a while.
People age 50 and up now buy more than 6 of every 10 new vehicles sold -- 62 percent -- according to a new study from J.D. Power and AARP.
That's up from 39 percent in 2001.
"We've seen that trend emerge more clearly over the past four years," said Scott Gruwell, Sales Director with Courtesy Chevrolet in Phoenix. "It seems boomers are buying new and Millennials are buying used."
The 50-plus age group share of the population has grown, from 37 percent in 2000 to 42 percent last year, but their share of new vehicle purchases rose at a much faster rate.
And while their population remained flat, 18- to 34-year-olds' share of the new-car market declined sharply.
One reason why? Gas prices.
"The boomers are very concerned about the rising costs at the pump," Gruwell said. "We see more interest from them in purchasing fuel-efficient vehicles."
The recession also drove the trend.
"Boomers' discretionary income was less affected than Millennials'," Gruwell said. "Frankly, [older buyers] don't have the patience to mess around with [something used] and want the reliability and securing of a new vehicle."
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