Gojirra99

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 three or more vehicles.

AutoPacific also estimates from its research that 54 percent of Boomers expecting to keep their vehicle four years or less, while 26 percent will turn them over in three years or less, making them very active consumers of automotive hardware. -Joe Szczesny

source : thecarconnection

rominl

iTrader: (4)

interesting. if that's the case then probably toyota is doing very well, coz' their avg age of customers are way up

but personally i think manufcturers should still aim for 30+ yr old buyers. it's just a matter of when you start to build up your image

mmarshall

It also has to be noted that buyers under about age 25 or so buy used vehiles as much if not more often than new ones.

Very little of this article really surprises me. I've been saying for several years that automakers in general have been over-emphisizing sport and performance over comfort.

I also feel, however, that two things need to be done. First, in many cases young people simply don't make enough.....while I'm not saying give young people things on a silver platter without working for it, but give them better wages and salaries if they DO work for it. Second, cars could be made to sell cheaper if automakers did not put so much equipment on them.....much of it government mandated.

Lexmex

I have always had the impression that bigger car companies have a wide range of prices and models and try to feed off of different market segments depending on income.

spwolf

hm, pretty funny article. There is good reason why they are chasing young buyers - they grow old eventually :-).

tonydt1g3r

Well the reason those 50+ people buy so many cars is because they keep wrecking their old one. I see so many old people driving in Florida that have no business being on the road.

"Sorry I just moved down from New York and have been driving for 2 weeks" They tell you this after they hit you.

Damn old people and their obsession with FL.

Lexmex

LOL, but true. Having lived in Florida, this was one of the ways I learned to respect my elders. Down here in Mexico, the old people have even told me in cursed fits out of their window translated, "I am old, I have the right of way."