So Long to Young Sporty Cars, In With Old People Boats?
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02-28-2006, 11:25 PM
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So Long to Young Sporty Cars, In With Old People Boats?
Young Buyers Overrated, Says Study
A new study from AutoPacific stands on its head the notion that automakers have to chase young buyers. The study says automakers ought to worry less about the youth market and instead pay more attention to the Baby Boomers, who range in age from 41 to 60. Baby Boomers have the cash needed to spend on cars, the study says, while younger buyers may like them but can't afford them.
The study appears as a spate of new books, such as Generation Debt: Why Now Is a Terrible Time to Be Young, by Anya Kamenetz, are arguing that young Americans face a tough row economically because of dramatic shifts in the economy.
If the books are accurate, it appears the auto industry, like the Spanish explorer Ponce de Leon, are chasing a fountain of youth that may not exist. Baby Boomers, on the other hand, 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 percent of all discretionary income and will become more affluent as they inherit a great amount from their parents, the report noted.
The average American household purchases 13 cars over a lifetime. Seven vehicles are purchased after the head of the household turns 50, according to AutoPacific, which also notes that 50 percent of Boomer households already own 3 or more vehicles.
AutoPacific also estimates from its research that 54 percent of Boomers expecting to keep their vehicle 4 years or less, while 26 percent will turn them over in 3 years or less, making them very active consumers of automotive hardware.-Joe Szczesny
Source: The Car Connection
A new study from AutoPacific stands on its head the notion that automakers have to chase young buyers. The study says automakers ought to worry less about the youth market and instead pay more attention to the Baby Boomers, who range in age from 41 to 60. Baby Boomers have the cash needed to spend on cars, the study says, while younger buyers may like them but can't afford them.
The study appears as a spate of new books, such as Generation Debt: Why Now Is a Terrible Time to Be Young, by Anya Kamenetz, are arguing that young Americans face a tough row economically because of dramatic shifts in the economy.
If the books are accurate, it appears the auto industry, like the Spanish explorer Ponce de Leon, are chasing a fountain of youth that may not exist. Baby Boomers, on the other hand, 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 percent of all discretionary income and will become more affluent as they inherit a great amount from their parents, the report noted.
The average American household purchases 13 cars over a lifetime. Seven vehicles are purchased after the head of the household turns 50, according to AutoPacific, which also notes that 50 percent of Boomer households already own 3 or more vehicles.
AutoPacific also estimates from its research that 54 percent of Boomers expecting to keep their vehicle 4 years or less, while 26 percent will turn them over in 3 years or less, making them very active consumers of automotive hardware.-Joe Szczesny
Source: The Car Connection
#2
02-28-2006, 11:36 PM
Record Breaker
RE: So Long to Young Sporty Cars, In With Old People Boats?
Yeah, and this is why the Buick division is selling so well (I'm being very sarcastic). Boomers like sporty sedans, not these overpriced Vanilla cars. The fact is you can dedicate one division to make vanilla cars and use all the other divisions to have diversity for the other people. The younger crowd will get money in time and will get the cars they have been dreaming of. I think the correct title would be coupes are dying out.