(June 23, 2014) CHICAGO — The majority of Millennial consumers on car shopping site Cars.com want to purchase a vehicle under $20,000, and they're more likely to use a smartphone to comparison shop dealerships than older consumers.

According to new research by Placed, commissioned by Cars.com, nearly two-thirds (65%) of Millennials (shoppers ages 18-34) use a smartphone to conduct research prior to visiting a dealership, performing a wide variety of mobile research tasks, including reading online reviews and accessing information about vehicle payments and offers.

Moreover, of Millennials age 21 to 24, the group most commonly associated with recent college graduation, approximately 70 percent prefer to spend less than $20,000 on a vehicle, according to internal site data from Cars.com.

"As recent graduates begin their careers and consider purchasing a new car, the majority will focus on affordability first and foremost," said Jesse Toprak, chief analyst for Cars.com. "Millennials know they have options, and they rely on their smartphones more than any other generation to make sure they're getting the best deal they can while on the lot. Retailers would be wise to take note and prepare to work with this well-informed, tech-savvy group of car buyers."

Additional findings include:

    • Approximately 70% of Millennials aged 21-24 shopping on Cars.com are looking for a vehicle under $20,000

    • Millennials are more likely than those 35+ to visit an additional dealership due to finding a better priced vehicle nearby

    • Millennials are more likely to perform a wide variety of research tasks on the lot than shoppers 35+

    • Almost two-thirds (65%) of Millennials (age 18-34) use a smartphone for research prior to a dealer visit

"The compact car segment is the top choice for Millennials as the models in this category nicely fit the needs of first-time buyers," said Toprak. "This segment has a low cost of ownership and offers increasingly seamless integration of digital technology and connectivity with built-in infotainment systems."

As new Millennials enter the workforce, their priorities in purchasing a vehicle are heavily weighted by price and functionality.