SHOPSMART AUTOS – CUSTOMER INFORMATION – AUGUST 28, 2020
Tips for Selling to the Millennial Car Buyer (Pt.1)
The landscape of the automotive industry is shifting. Recently GM invested $500 million in Lyft, Volkswagen invested $300 million in Gett, Toyota invested an undisclosed amount in Uber and in Getaround, Apple invested $1 billion to Didi Chuxing (Uber’s biggest rival in China), Tesla has announced plans for a fully autonomous ride-sharing service called Tesla Network, and Hyundai is targeting Millennials with a new subscription program that will “make car ownership as easy as owning a phone.”
With so much growth surrounding ride-hailing and ride-sharing services, one might think that the future of car buying is bleak…but think again.
Less than 8 percent of Millennials said they decided to use ride-hailing services to avoid or postpone a car purchase.
Fifty-two percent of 18-33-year-olds say they plan to buy a car in the next one to five years.
Millennials are just waiting longer to buy cars, just like they are waiting longer to get married, buy a home, and have children.
It’s important that dealers, automakers, and marketers understand who the next generation car buyers are since Millennials are positioned to become the dominant car buying group.
A new generation of car buyers.
Half of Millennial car shoppers are open to any brand. Millennials won’t buy cars for status, image, or brand loyalty. They view cars as a practical need instead of an emotional want.
More than half of Millennials said they would buy an autonomous vehicle, with almost 75 percent saying they would be comfortable having artificial intelligence system drive their vehicle. Millennials are not as interested as other generations in raw engine horsepower or torque, instead they want affordable, environmentally friendly, sleek design, and high-tech features.
Fifty-four percent of Millennial men agree that women are equal or better than men at car shopping, compared to 48 percent of Baby Boomer men, and 60 percent say that women are strong negotiators, compared to 49 percent of Baby Boomer men.
Twenty-five percent of all consumers getting vehicle repair or service are Millennials. This will likely rise as Millennials age and increase the number of vehicles in their growing households.
Seventy percent of Millennials say they are willing to pay more for quality vehicle maintenance/service. Millennials have a higher proportion of vehicles with extended warranties, and owners with extended warranties are typically more likely to use dealerships for service.