Pub. 4 2015-2016 Issue 2

20 San Diego Dealer What You Need to Know About Millennials & Why It Matters F or 50 years now, the boomer generation has driven the evo- lution and meaning of cars as we know them today. Now, their millennial children have come of age, and they will have the same kind of impact on the car industry as their parents. Despite that their sheer numbers are similar to boomers, that’s where the similarity ends. The Millennials are the most diverse, most educated, most socially-conscious and most tech-savvy group living on the planet today. More than half, for example, have at least some college education (vs. Boomers at 36%).1 By 2030, their buying power will exceed all other consumer groups combined. 2 Evenmore significantly, though, is theway they communicate, shop and buy, which is radically different from their parents and is universally tied to technology. Indeed, technology use, more than any other characteristic, is the defining characteristic of this generation. 1 Who They Are • Born between 1980–2000 (75 million) 5 • 46% of the workforce by 2020 6 • Annual income by 2017 (trillions): $3.4 vs. Boomers $2.8 7 • Attitudes & behaviors 4 • Expect speedy, efficient transactions • Trust peers more than subject matter experts • Very social — online and offline • Believe they can make the world a better place Affordability Is the Top Concern for Millennials 1 There’s a perception that cars aren’t important to Millennials, but that’s actually not the case. Cars ARE important to Millennials – they simply aren’t buying them as much as older generations because of their current economic situation and not for lack of interest. 8 As a result, this generation is more likely to say that personal debt impacts their ability to purchase a vehicle more so than their older counterparts, likely because they may be carrying a lot of college debt. As a result, 40% are shopping for a car under $20,0001 and are more likely to consider a used or CPO car than older drivers. 1 71% Factor in Cost of Ownership Before Buying a Car 1 Most car shoppers are concerned with cost of ownership, but it’s especially true for Millennials. They look more closely at the lifetime cost of a vehicle than older shoppers. Cost is also the top concern when selecting where to service their vehicle. Additionally, Millennials tend to be more value-conscious and pride themselves on using technology to find all the information they need, but 56% report frustration with being able to find the best deal. 1 What You Can Do • Stock cars that are in demand in your market, and price them aggressively and competitively to appeal to younger shoppers. If you’re an Autotrader customer, your advertising consultant can help you identify the cars shopped most on the site in your local area, or consider using a pricing tool from companies like vAuto. • Ensure consistent pricing online and offline. • If you have a service drive, post your service rates online. • Promote your special offers both online and offline. • Provide information about total cost of ownership from third-party sources. Continued on page 22