Younger drivers have reportedly had it with the dealership experience, with Gen Z even more disenfranchised than Millennials. Though it’s difficult to imagine anybody visiting a showroom within the last 12 months having any other reaction. Incentives are down, prices are up, and there’s a good chance whatever you wanted to buy isn’t going to be on the lot anyway. Someone saying they had an exemplary dealer experience is becoming about as common as people claiming they enjoy going to the DMV.
However, CDK Global Inc. still opted to conduct a survey in the hopes of determining just how much less tolerant younger shoppers might be compared to older generations. The takeaway probably isn’t going to shock you, even if the sheer volume of first-time buyers that don’t care for dealerships might.
For roughly the last decade, we’ve heard the motoring media bemoan Millennials as the generation that snubbed driving. Their inability to find and hold jobs that paid as well as their parents’ did at the same stages of life, combined with elevated costs of living and crippling student debt load, negatively impacted their purchasing power. Still, this generation might be just the tip of an iceberg the industry’s about to careen into.
As it turns out, Generation Z might even be less interested in cars. In addition to facing similar financial constraints as their older peers, most of them aren’t even bothering to get a driver’s license.
It looks as though more parents are increasingly paying for the transportation needs of their (sometimes very old) children.
Thanks largely to abandoning the important job of parenthood, a Bank of America survey a discovered small portion of adults between age 23 and 37 are now able to put away legitimate savings. However, the prevalence of student debt, low-paying jobs, and an increased cost of living has left many to continue scrimping and saving. In fact, most Millennials under 24 had less than $1,000 in their savings accounts, with nearly half having no savings at all. The former was also true for older members of the same generation. On average, it’s presumed that Millennials are earning 20 percent less than their Boomer parents at the same stage in life — despite being better educated, overall.
That’s causing future issues for the automotive industry. When Bankrate surveyed Americans to get their financial priorities on record last month, 23 percent of respondents specified that student-loan debt directly influenced their decision to delay purchasing a new car. Considering both monthly payments are frequently set to the tune of hundreds of dollars, that would make a lot sense.
Poor Generation X. Isolated, ignored and cynical, they brought us great music in the early-to-mid 1990s, but their opinion on self-driving cars and autonomous safety features just isn’t important.
At least, that’s the feeling you get while reading the results of J.D. Power’s U.S. Tech Choice Study. The company polled 8,500 Americans who bought a vehicle during the past five years, asking them how they felt about the emerging technology.
Naturally, large generation gaps appeared, not the least of which was the elimination of Gen Xers in favor of the opinions of Boomers, Generation Y and Z. So, how does the opinions of the largest car-buying cohort compare to that of the newest?
Baby Boomers are getting too old for traditional sports cars. Their purchasing power may have ushered in the initial success of the muscle car (as well as its resurrection), but no 70-plus-year-old wants to obliterate their pelvis crawling into a low-slung coupe or have its rock-hard suspension rattle the dentures out of their mouth.
That leaves the younger generations to champion the sports car going forward, and — I am very sad to say — they will not be up to the task.
Just when you thought you’d read the last article analyzing the vehicle purchasing habits of Millennials, here comes another from Canada’s largest national newspaper, the Globe and Mail.
“Why car companies spend so much time targeting hipsters” is the headline of Jon Cook’s story, which delves into the cringe-inducing ad campaigns automakers have crafted to lure young and hip people into showrooms.
The author touches on some valid marketing points in the piece, then un-ironically introduces people who embody the hipster stereotype to talk about what hipsters like themselves want.
For starters, “hipster” is not interchangeable with “Millennial,” and the tropes that come with hipsterdom do not necessarily resonate across the age spectrum occupied by Millennials (roughly, people born in the 1980s and ’90s).