AutoPacific Research: Automakers Should Market More to Baby Boomers

TUSTIN, CA - Feb. 21, 2006: Automotive researcher AutoPacific has released the results of its comprehensive study of the Baby Boomer automotive consumers. The conclusion from AutoPacific's Baby Boomer Consultancy is that automotive marketers are paying too much attention to youth marketing at the expense of a huge potential with the Baby Boomer market.

Baby Boomers -- now aged 41 to 60 -- are the most affluent Americans, with three-quarters of the nation's financial assets and $2-trillion in disposable income annually. Boomers control more than 50% of all discretionary income and will become more affluent as they inherit a great amount from their parents.

Boomers account for more than half of U.S. spending, and the older they get, the deeper their pockets. Boomers will keep spending.

The Boomers' household fleets say it all. Boomers likely have an SUV, sports car, or a classic in their garage. The average American household purchases 13 cars over a lifetime. Seven vehicles are purchased after the head of the household turns 50. AutoPacific research shows 50% of Boomer households already owns 3 or more vehicles. Many Boomer couples will add a third vehicle to their family fleet that will be "aspirational", displaying their personal style.

  Baby Boomer Households -- Number of Vehicles

  1-vehicle:  12%
  2-vehicles:  38%
  3-vehicles:  27%
  4-or more vehicles:  23%

AutoPacific research indicates Boomers will maintain their pace of car buying with 54% of Boomers expecting to keep their vehicle 4 years or less, 26% 3 years or less.

  Baby Boomer Households -- Expected Length of Ownership

  2 years or less:  10%
  2 to 3 years:  16%
  3 to 4 years:  28%
  More than 4 years:  46%

AutoPacific's conclusion is that marketers should focus on Boomers -- where the money is and where there is willingness to spend it!