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.