Adults Over 50 Dominate Car Purchases
10-04-10, 10:15 AM
#1
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Adults Over 50 Dominate Car Purchases
http://www.brandweek.com/bw/content_...=Google+Reader
When it comes to car purchases, adults over 50 surpass younger consumers. In fact, this demographic is responsible for three out of five new car acquisitions, according to a report by AARP Media Sales, in conjunction with J.D. Power and Associates.
Sixty two percent of adults over 50 currently account for new vehicle acquisitions, compared to two years ago, when they accounted for 50 percent. The number is even higher for hybrid sales. Adults over 50 make up 73 percent of hybrid purchases.
Out of the 39 car brands measured in the study—which examined the media habits and profiles of more than 41,000 new vehicle buyers—32 credited the bulk of their sales to consumers over 50 years of age.
As a comparison, car sales were down 36 percent in 2009 versus 2008. And, according to the study, adults 18-49 were responsible for 71 percent of this drop.
"The primary reasons for this escalation is the huge population of baby boomers turning 50 and their ability to spend on higher-ticket items during harsh economic times. [Meanwhile] younger adults are moving back home to ease basic financial burdens, such as housing and food," said AARP Media Sales research director Mark Bradbury.
Additionally, the study found that 33 percent of adults over 50 pay cash for their cars, compared to 13 percent of consumers under 50. Consumers over 65 are also an increasingly important demo for carmakers. Nearly 24 percent of new vehicles are purchased by adults aged 65 and older, which is nearly double (12.7 percent) compared to 2001.
Sixty two percent of adults over 50 currently account for new vehicle acquisitions, compared to two years ago, when they accounted for 50 percent. The number is even higher for hybrid sales. Adults over 50 make up 73 percent of hybrid purchases.
Out of the 39 car brands measured in the study—which examined the media habits and profiles of more than 41,000 new vehicle buyers—32 credited the bulk of their sales to consumers over 50 years of age.
As a comparison, car sales were down 36 percent in 2009 versus 2008. And, according to the study, adults 18-49 were responsible for 71 percent of this drop.
"The primary reasons for this escalation is the huge population of baby boomers turning 50 and their ability to spend on higher-ticket items during harsh economic times. [Meanwhile] younger adults are moving back home to ease basic financial burdens, such as housing and food," said AARP Media Sales research director Mark Bradbury.
Additionally, the study found that 33 percent of adults over 50 pay cash for their cars, compared to 13 percent of consumers under 50. Consumers over 65 are also an increasingly important demo for carmakers. Nearly 24 percent of new vehicles are purchased by adults aged 65 and older, which is nearly double (12.7 percent) compared to 2001.
10-04-10, 10:22 AM
#3
Lexus Fanatic
10-04-10, 10:29 AM
#5
Lexus Fanatic
An excellent post, Mike. 
Geezers, in their Town Cars, DeVilles/DTS, Buick Lucernes, and Mercedes S-Classes often get laughed at by enthusiasts and the auto press, but guess where much of the money...and car-buying power.....is?
Yet, the type of cars that this age group typically buys are being ignored...or dropped. 
This is why I've said for years, even though, technically, I'm not (yet) in the Senior-Citizen class over 62, that automakers ignore older buyers at their peril. Unfortunately, that's just what seems to be happening today, especially in the luxury-car/premium class.
It's not like we were just handed money, though, on a silver platter, out of nowhere (though that's true in some cases, especially those who had Tech stocks in the late 90s). Most people in my age group have been working for 35-40 years, and have had a chance to save up for decades.
Geezers, in their Town Cars, DeVilles/DTS, Buick Lucernes, and Mercedes S-Classes often get laughed at by enthusiasts and the auto press, but guess where much of the money...and car-buying power.....is?
Consumers over 65 are also an increasingly important demo for carmakers. Nearly 24 percent of new vehicles are purchased by adults aged 65 and older, which is nearly double (12.7 percent) compared to 2001.
This is why I've said for years, even though, technically, I'm not (yet) in the Senior-Citizen class over 62, that automakers ignore older buyers at their peril. Unfortunately, that's just what seems to be happening today, especially in the luxury-car/premium class.
"The primary reasons for this escalation is the huge population of baby boomers turning 50 and their ability to spend on higher-ticket items during harsh economic times.
Last edited by mmarshall; 10-04-10 at 10:39 AM.
10-04-10, 10:33 AM
#6
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So basically young people have laptops and talk crap about cars on the internet and the 50 year olds own laptop companies and actually buy the cars the young kids talk crap about.
The article makes sense and it goes back to why I don't understand many brands desire to offer sport sport sport when there is a huge market for people that don't want that.
The article makes sense and it goes back to why I don't understand many brands desire to offer sport sport sport when there is a huge market for people that don't want that.
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10-04-10, 05:49 PM
#9
Lexus Fanatic
Of course, sometimes automakers (can) go in the opposite direction as well....and provide too much luxury and perhaps not enough sport. The Cadillac DTS, which I reviewed a couple of weeks ago, is a perfect example. It has the ride comfort/quietness that many traditional luxury-car buyers want, but, as I pointed out in the review, has been seriously neglected in the areas of engine, transmission, steering, and interior-materials quality. It rides wonderfully (by today's standards), but has a sluggish, inefficient powertrain and steers/handles like a river barge.
Last edited by mmarshall; 10-04-10 at 05:52 PM.
10-04-10, 06:01 PM
#10
Lexus Champion
LaCrosse, Taurus, Lincoln MK(?), ES350, Malibu and others are the cars the over 50 consumers are and will be buying. None are real sporty and are the new reality for these buyers.
IMO buyers are making the adjustment.
IMO buyers are making the adjustment.
10-04-10, 07:07 PM
#11
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I'm 24 and I have no cash to buy a car. In fact, I know only two or three people that have bought a car since graduating college.
I will say though, I am eagerly counting down the days until I get my M.A. and can afford a new car.
I will say though, I am eagerly counting down the days until I get my M.A. and can afford a new car.
10-04-10, 08:23 PM
#12
Lexus Fanatic
And the premium car business the top-selling Lexus and Mercedes models are actually more lux-oriented in reality despite snazzy and sleek sport sedan styling. It's what people buy in volume, yeah sporty is a nice look but most of the premium car buyers demand a lot of luxury and comfort, myself included.
The premium car brands offer -F, AMG, M-sport models, but in reality it's a very small portion of sales volume despite the high-profile hype. In the premium car business they have to offer it even if they know most buyers won't actually pay the money to have it or put up with it on a daily basis.
Last edited by IS-SV; 10-04-10 at 08:27 PM.
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