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The Next Generation Car Buyer

Isabelle Helms
Sr. Director, Research & Marketing Analytics

What we learned

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Cars ARE important!

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% Delayed obtaining a license


Boomers = 24% Gen X = 28% Older Millennials = 27%

Q. Which of the following best describes when you first received a drivers license? I delayed getting my drivers license until I was older.

But, not for the reasons you think

Top reasons for license delay

23% Afraid of driving....19% Expensive/cost..... 15% Want more training.........14% No need to drive... 9% No interest in driving........ 6%
Busy/no time....
Q. Why did you delay getting your drivers license?

Cars are important to their social life


Automobile Technology

90% 72% 65%

87% 68%

78%

76%77%

Young Millennial (A)

Older Millennial (B)

Generation X (C )

Baby Boomer (D)

Q. How important are each of the following items to your social life? (%top two-box)

83

% Cant afford to own a vehicle right now

Base: Random Sample (Licensed Driver, Non-Vehicle Owner) Q. What are the main reasons you dont currently own a vehicle?

So while ownership is largely a function of financial circumstance

52

% Drive someone elses vehicle

Base: Random Sample (Licensed Driver, Non-Vehicle Owner) Q. Which of the following is your primary means of transportation?

73

% Plan to purchase in the foreseeable future

Base: Random Sample (Licensed Driver, Non-Vehicle Owner) Q. Which of the following best describes your plans for purchasing a vehicle?

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Cars are an extension of their personal brand

% Important for vehicle to reflect their personality


Boomers = 34% Gen X = 38%

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Base: Random Sample (Licensed Driver, Current Vehicle Owner) Q. Please rate your level of agreement with the following: It is extremely important that my vehicle reflects my personality (% top 2 box)

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% Vehicle represents their accomplishments


Boomers = 27% Gen X = 28%

Base: Random Sample (Licensed Driver, Current Vehicle Owner) Q. Please rate your level of agreement with the following: The type of vehicle I drive represents what Ive been able to accomplish in life (% top 2 box)

66

% Stick with a brand they like


Boomers = 64% Gen X = 67%

Source: Forrester Research, 2013

But, their loyalty is harder to keep

30

% Loyal to current brand


Boomers = 47% Gen X = 41%

Base: Random Sample (Licensed Driver, Current Vehicle Owner) Q. How likely are you to purchase this brand for your next vehicle

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They personally connect with luxury & imports

5 Top brands
Personality fit
Young Millennials
#1 #2 #3 #4 #5

Older Generation Millennials X


#1 #2 #3 #4 #5 #1 #2 #3 #4 #5

Baby Boomers
#1 #2 #3 #4 #5

Q. Looking at the brands below, would you say each is a brand thatfits you perfectly? Is a very good fit for how you think of yourself? Does not at all fit with how you think of yourself? (top two-box)

What these brands Convey


Q. Now, thinking about all brands, please indicate which of the following auto brands you strongly associate with each of the following attributes.

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Come time to purchase, they go for practical

5 Top brands
Consideration
Young Millennials
#1 #2 #3 #4 #5

Older Generation Millennials X


#1 #2 #3 #4 #5 #1 #2 #3 #4 #5

Baby Boomers
#1 #2 #3 #4 #5

Q. If price were not a consideration, how likely are you to purchase the following brands in the future? (% top two-box)

Brand Consideration
Millennial Baby Boomer

84% 77% 61% 60% 75% 69%

Luxury Brands

Domestic Brands

Import Brands

Q. If price were not a consideration, how likely are you to purchase the following brands in the future? (% top two-box)

23

38

% Say made by US workers is important


Boomers = 60% Gen X = 53%

Q. If you were shopping for a vehicle, how important is it that you purchase a vehicle made in the U.S. by U.S. workers?

41

% Say made by US company is important


Boomers = 52% Gen X = 47%

Q. If you were shopping for a vehicle, how important is it that the vehicle you purchase be made by a U.S. company?

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Dealerships have a huge opportunity to influence

Visit more dealerships, more frequently


Dealerships visited # of visits to selected dealership

3.1 2.5 2.5 2.2 1.9 1.8

Millennials

Generation X

Baby Boomer

Base: Recent Purchaser (Last 3 months) Q. How many dealerships did you visit while shopping for your? Q. How many times did you visit this dealership in-person before making the purchase?

49

% Rely heavily on dealership salesperson for information


Boomers = 38% Gen X = 41%

Base: Recent Purchaser (Last 3 months) Q. Please rate your level of agreement with I rely heavily on the information provided to me by the salesperson at the dealership (top 2-box)

Unfortunately

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% Want to avoid a salesperson interaction


Boomers = 37% Gen X = 49%

Base: Recent Purchaser (Last 3 months) Q. Please rate your level of agreement with the following statements related to your recent dealership experience (top-2 box)

60

% Dealer tried to sell me a service I did not want


35+ years and older = 45%

Base: Recent Purchaser (Last 3 months) Q. Please rate your level of agreement with the following statements related to your recent dealership experience (top-2 box) Source: 2012 AutoTrader.com Dealer Experience Study

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% Dealer tried to sell me a vehicle I did not want


35+ years and older = 25%

Base: Recent Purchaser (Last 3 months) Q. Please rate your level of agreement with the following statements related to your recent dealership experience (top-2 box) Source: 2012 AutoTrader.com Dealer Experience Study

And as a result

47

% Consider their dealer to be trustworthy


35+ years and older = 64%

Base: Recent Purchaser (Last 3 months) Q. Please rate the following on how well they describe the dealership where you purchased your vehicle? Trustworthy Source: 2012 AutoTrader.com Dealer Experience Study

Dealership opportunity
Knowledgeable staff Dealership appearance Experience

Base: Recent Purchaser (Last 3 months) Q. Which of the following factors had the most influence on what dealership you ultimately selected for your purchase?

In recap

1 #2 #3 #4 #5
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Cars ARE important! Cars are an extension of their personal brand They personally connect with luxury & imports Come time to purchase, they go for practical Dealerships have a huge opportunity to influence

Thank You

Isabelle Helms
Sr. Director, Research & Marketing Analytics