AutoPacific Research - Generation Y Car Buyers Want Value and Image
TUSTIN, Calif., Nov. 30, 2005 -- Are Generation Y new vehicle buyers really different from the older generations? AutoPacific's annual Generation Y Consultancy shows that Generation Y -- the youngest vehicle buyers in the market -- are very different when vehicle selection reasons are considered. The following chart shows how some key vehicle selection reasons stack up when Generation Y is compared to older generations:
Important Vehicle Selection Reason Gen Y Older Difference
(18-28) Generations
(AGE 29+)
Price/monthly payment 51% 35% +16 points
Image 29% 17% +12 points
Durable/long lasting 64% 54% +10 points
Value for the money 55% 46% +10 points
The above data ring true for every vehicle segment. Generation Y buyers want a high value, affordable to operate, long lasting vehicle that they can be proud to drive. This seemingly simple equation has been solved with varying degrees of success by cars sold by Acura, Mitsubishi, Scion, Suzuki and Hyundai.
What vehicles are attracting Gen Y buyers? The following list is of those vehicles that are attracting the highest percentage of Gen Y buyers.
Vehicle Median Age % Gen Y Buyers Acura RSX 36 42% Mitsubishi EVO 36 38% Scion tC 49 32% Suzuki Reno 36 32% Mitsubishi Lancer 41 32% Hyundai Tiburon 38 31% Hyundai Accent 44 31% Chevrolet Cobalt 40 30% Subaru Impreza WR-X 38 28% Acura TSX 39 28% Volkswagen Jetta 38 26% Honda Civic 46 25% Volkswagen Golf 37 23% Lexus IS 40 23% Mitsubishi Eclipse 43 23% Volvo S40 43 22% Hyundai Tucson 51 22% Pontiac Sunfire 48 21% Nissan Xterra 44 20% Hyundai Elantra 47 20% Saturn ION 48 20%
Median age is misleading in some cases with a high percentage of Gen Y buyers (i.e., Scion tC 49 median age, but 32% are owned by Gen Y buyers) offset by a similarly high percentage of Baby Boomers. Cars attractive to both young and old -- bimodal products -- show that a young person's car can also bring more mature buyers into the dealership.
Many auto manufacturers are scrambling to win the hearts of this huge generation of car buyers. With over 70 million prospective new car buyers in the Generation Y population cohort they are set to rival the Baby Boomer generation as a source of sales. The data here suggest that price, durability and value are a good place to start. AutoPacific's Generation Y Consultancy digs deeper into the keys to earning a place on Generation Y's shopping list. Based on a sample of nearly 2,300 Generation Y buyers and total sample of more than 33,400 respondents this annual report has become an important tool for the success of many OEMs in reaching this group.
