5 Things to Know About The Next Generation Car Buyer
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1 MILLENNIALS 5 Things to Know About The Next Generation Car Buyer
2 About This Research A look across multiple generations with the purpose of understanding how Millennials are unique. Combines several AutoTrader.com proprietary studies, including our 2013 Millennial Research project Surveyed 1,657 Millennials; 993 Gen X; 1,062 Boomers 75 Millennials participated in a month long community 2
3 # 1 MILLENNIALS Cars ARE Important
4 While Millennials find technology more important to a good social life, cars are still highly important. Automobile 72% 90% 87% 65% 68% Technology 78% 76% 77% Young Millennial Older Millennial Generation X Baby Boomer Q. How important are each of the following items to your social life? (%top two-box) Source: 2013 Millennial Research
5 Some Young Millennials may not own a car yet, but they still hit the open road. 50% Currently own. but 71% Drive frequently. Q. Do you currently own a vehicle? Q. Within the past year, how frequently have you driven a vehicle? (% top two-box) Source: 2013 Millennial Research 5
6 For Young Millennials, not owning a car is primarily a function of their current financial position but most plan on buying a car. 83% Can t afford to own a vehicle. 52% Drive someone else s vehicle. 73% Plan to purchase in the future. Q. What are the main reasons you don t currently own a vehicle? Q. Which of the following is your primary means of transportation? Q. Which of the following best describes your plans for purchasing a vehicle? Source: 2013 Millennial Research 6
7 My vehicle is critical to so many parts of my life. I need it for work, sports, friends, family, etc. I am lost without it. I would put it on a level with my phone. They are both critical to me, but in the end it (vehicle) is slightly more important. Source: 2013 Millennial Research Community 7
8 # 2 MILLENNIALS They have an affinity for luxury and import brands.
9 They are more likely to feel luxury and import brands best match their personality and image. Brand Fits Personality (Top 5 Brands) Q. Looking at the brands below, would you say each is a brand that fits 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) Source: 2013 Millennial Research 9
10 Millennials want vehicles that reflect their unique personality and offer technology, putting a heavy focus on styling and features. 72% of Young Millennials said infotainment technology is a must have 56% Older Millennials 61% Gen X 61% Boomers 48% of Millennials want their vehicle to reflect their personality 38% Gen X 34% Boomers 38% of Millennials want their vehicle to represent their accomplishments 28% Gen X 27% Boomers Q. Which of the following options would have to be included in a vehicle for you to consider purchasing it? Q. (% agree top two box) It is extremely important that my vehicle reflects my personality Q. (% agree top two box) The type of vehicle I drive represents what I ve been able to accomplish in life Source: 2013 Millennial Research 10
11 The younger generation looks for technology more than the older one. I would look for ipod hookups, touch screen radio, heated seats, etc. Also, I feel the younger generation would be concerned that the style is not what they are looking for. Source: 2013 Millennial Research Community 11
12 # 3 MILLENNIALS However, domestics still play a prominent role.
13 Domestics are still prominent on their consideration list when it comes time to purchase. Brand Consideration (Millennials) 70% 60% Top ones being Honda, Chevrolet, Toyota, and Ford 50% 40% 30% 20% 10% 0% Please note: not all brands tested are shown Q. If price were not a consideration, how likely are you to purchase the following brands in the future? (% top two-box) Source: 2013 Millennial Research 13
14 Their consideration set is just more open to imports and luxury brands compared to that of Boomers. Brand Consideration (% point above/below Boomers) 20% 15% 10% 5% 0% -5% -10% -15% -20% Significantly higher Significantly lower Please note: not all brands tested are shown Q. If price were not a consideration, how likely are you to purchase the following brands in the future? (% top two-box) Source: 2013 Millennial Research 14
15 Millennials are more open to imports, as "Made in America" doesn't resonate with them as much. 34% of Young Millennials think it is important that their vehicle be made by U.S. workers. (45% Older Millennials, 53% Gen X, 60% Boomers) 37% of Young Millennials think it is important that their vehicle be made by a U.S. company. (38% Older Millennials, 47% Gen X, 52% Boomers) Q. If you were shopping for a vehicle, how important is it that you purchase be made by a U.S. company? A vehicle made in the U.S. by U.S. workers? Source: 2013 Millennial Research 15
16 Brand fit and consideration are not yet aligned, resulting in lower loyalty to current vehicle brand. 47% Boomers 41% Gen X 30% Millennials Q. (% agree top two-box) How likely are you to purchase a for your next vehicle? Source: 2013 Millennial Research 16
17 However, Millennials are just as brand loyal as other generations if they find a brand they like. 64% Boomers 67% Gen X 66% Millennials Source: Forrester Research 17
18 # 4 MILLENNIALS Leverage multiple sources, but enjoy the shopping process less.
19 Similar to other generations, the Internet is their primary resource. Use Internet to vehicle shop 88% 91% 80% Millennials Gen X Boomers Q. Did you use the Internet in any way to help you shop for your most recently purchased vehicle? Source: 2013 Polk Buyer Study 19
20 But Millennials are also more likely to leverage other channels to help guide their purchase decision. Use referrals to vehicle shop 43% 28% 32% Millennials Gen X Boomers Q. Did you use this source while vehicle shopping? Source: 2013 Polk Buyer Study 20
21 including the Dealer Salesperson. Rely heavily on the dealer salesperson for information 49% 41% 38% Millennials Gen X Boomers Q. (% agree top two box) I rely heavily on the information provided to me by the salesperson at the dealership? Source: 2013 Millennial Research 21
22 Millennials are more likely to use mobile devices (and multiple devices) in their shopping process. Device Usage to Vehicle Shop Millennials vs. General Shopping Population Desktop/Laptop 87% vs. 91% Tablet Multiple Devices Smartphone 28% 34% vs. 19% (2+) 36% vs. vs. 23% 19% Q. Prior to purchasing your vehicle, which of the following devices did you use to access automotive information, either through the Internet or by using a mobile app? Source: 2013 Polk Buyer Study 22
23 Millennials find the shopping process more frustrating overall. Shopping Experience (% Mostly Positive) 68% 79% 61% 63% 67% 46% 45% 61% 63% 60% 42% 42% 44% 41% Millennials 35+ years old 56% 50% 38% 36% 42% 39% 39% 35% 34% 33% Research features & options Search inventory Find incentives & specials Find the best deal/price Deal with the Salespeople Find the right dealership Apply for financing Negotiate a price Fill out paperwork Research financing options Value a trade-in Receive a trade-in offer RED Significantly lower than 35+ years old Q. Please rate these experiences as related to your most recent car buying experience. Source: 2012 Dealership Experience Study 23
24 I feel that my dad buys on impulse and doesn t put in the proper time in finding the right vehicle. I do a ton of research and make sure I get the right vehicle. Source: 2013 Millennial Research Community 24
25 # 5 MILLENNIALS Dealerships have a huge opportunity to influence.
26 Visit more dealerships, more frequently Dealerships visited # of visits to selected dealership Millennials Generation X Baby Boomers 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? Source: 2013 Millennial Research
27 Millennials have mixed feelings regarding the dealership. 61% of Millennials enjoy browsing the dealer lot. (53% Gen X, 49% Boomers) But 56% of Millennials avoid a salesperson interaction. Gen X = 49%, Boomers = 37% Q. (% agree top two box) I enjoy visiting the dealership and browsing the inventory Q. (% agree top two box) I prefer to interact with the dealership as little as possible Source: 2013 Millennials Research 27
28 Car dealerships are really exciting and overwhelming as you drive in to the lot and try to focus on a specific car that really catches your eye. But, then I think things get cumbersome when you re approached by salespeople. I think car dealerships are essential in deciding whether you truly want a certain car or not I think you need to try the physical thing before making a big purchase and investment. Source: 2013 Millennial Research Community 28
29 MILLENNIALS Recap: 5 Things to Know About The Next Generation Car Buyer
30 Millennials Recap # 1 # 2 # 3 # 4 # 5 Cars are important They have an affinity for luxury and import brands However, domestics still play a prominent role They seek lots of information from multiple sources but enjoy the shopping process less Dealerships have a huge opportunity to influence
31 MILLENNIALS The Next Generation Car Buyer Please contact your AutoTrader.com representative for more information
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