Gen Y’s Favorite Cars Are Foreign (Scion tops the list)
07-08-11 | 11:25 PM
#1
Gen Y’s Favorite Cars Are Foreign (Scion tops the list)
Trouble for Detroit? Gen Y’s Favorite Cars Are Foreign
By Jerry Edgerton | CBS MoneyWatch
Yahoo News Link
A new study of Gen Y drivers’ preferences looks like more bad news for the Detroit automakers.
Auto pricing site TrueCar.com tracked both the brands and individual models bought in 2009 and 2010 by Generation Y shoppers (ages 18 to 27). The results should strike fear into the hearts of U.S. auto executives: Not a single brand from a domestic automaker made the Top 10 list.
Scion, a brand set up by Toyota Motor specifically aimed at young buyers, was No. 1. Mitsubishi, a name that barely registers with older shoppers, came in second.
Some other brands among the top 10, such as Honda and Volkswagen, have a long record of youth appeal. But even the Korean corporate twins Hyundai and Kia, which have recorded surging sales in recent years, appear to have extended their appeal to young buyers as well as older ones.
Though Ford, Chrysler and the General Motors brands have enjoyed big sales gains this year, the TrueCar list portends some future trouble, as young buyers who like their first car often become loyal to that brand. “It is important for an auto maker to get a young buyer into their vehicle from the beginning, in hopes of continued loyalty to the brand,” says TrueCar chief analyst Jesse Toprak.
To that end, the domestic brands do still have the chance to get a boost from new models — such as the Ford Fiesta and Chevrolet Cruze — that offer plenty of features at an affordable price, notes Toprak’s colleague, TrueCar analyst Kristen Andersson. “Buyers from this generation are looking for vehicles that have the technology features they are accustomed to built into the vehicle at an affordable price, ” she says.
Not surprisingly, seven of the top 10 models preferred by young buyers have a list price of under $20,000. The top three models — the Scion tC, Mitsubishi Lancer and Honda Civic Si — offer a wide choice of features for personal customization.
The only U.S. model on the top 10 list of individual models is the Ford Focus coupe, which offers the SYNC system — Ford’s pioneering voice-command system, which controls mobile phones and to play music and is particularly popular with young buyers.
Other tech features that attract young buyers include the Lancer’s navigation system, with its own music server, and a Honda Civic Si system that lets the driver customize an on-screen display with options like current mileage.
Here is a closer look at TrueCar’s top brands and models:
Top Brands for Gen Y Buyers
(Ranked by percentage of buyers in Gen Y)
1. Scion — 21.2%
2. Mitsubishi — 20.3%
3. Mazda — 10.7%
4. Nissan — 9.8%
5. Volkswagen — 9.6%
6. Kia — 9.1%
7. Hyundai — 8.6%
8. Honda — 8.0%
9. Toyota — 7.6%
10. Subaru — 7.3%
Top Models for Generation Y Buyers
(Shown with MSRP)
1. Scion tC — $18,995
2. Mitsubishi Lancer — $20,670
3. Honda Civic Si – $22,975
4. Toyota Yaris Sedan — $13,915
5. Ford Focus Coupe — $17,365
6. Scion xD — $15,830
7. Volkswagen GLI — $25,365
8. Subaru Impreza – $19,220
9. Kia Forte — $15,690
10. Toyota Corolla — $16,660
By Jerry Edgerton | CBS MoneyWatch
Yahoo News Link
A new study of Gen Y drivers’ preferences looks like more bad news for the Detroit automakers.
Auto pricing site TrueCar.com tracked both the brands and individual models bought in 2009 and 2010 by Generation Y shoppers (ages 18 to 27). The results should strike fear into the hearts of U.S. auto executives: Not a single brand from a domestic automaker made the Top 10 list.
Scion, a brand set up by Toyota Motor specifically aimed at young buyers, was No. 1. Mitsubishi, a name that barely registers with older shoppers, came in second.
Some other brands among the top 10, such as Honda and Volkswagen, have a long record of youth appeal. But even the Korean corporate twins Hyundai and Kia, which have recorded surging sales in recent years, appear to have extended their appeal to young buyers as well as older ones.
Though Ford, Chrysler and the General Motors brands have enjoyed big sales gains this year, the TrueCar list portends some future trouble, as young buyers who like their first car often become loyal to that brand. “It is important for an auto maker to get a young buyer into their vehicle from the beginning, in hopes of continued loyalty to the brand,” says TrueCar chief analyst Jesse Toprak.
To that end, the domestic brands do still have the chance to get a boost from new models — such as the Ford Fiesta and Chevrolet Cruze — that offer plenty of features at an affordable price, notes Toprak’s colleague, TrueCar analyst Kristen Andersson. “Buyers from this generation are looking for vehicles that have the technology features they are accustomed to built into the vehicle at an affordable price, ” she says.
Not surprisingly, seven of the top 10 models preferred by young buyers have a list price of under $20,000. The top three models — the Scion tC, Mitsubishi Lancer and Honda Civic Si — offer a wide choice of features for personal customization.
The only U.S. model on the top 10 list of individual models is the Ford Focus coupe, which offers the SYNC system — Ford’s pioneering voice-command system, which controls mobile phones and to play music and is particularly popular with young buyers.
Other tech features that attract young buyers include the Lancer’s navigation system, with its own music server, and a Honda Civic Si system that lets the driver customize an on-screen display with options like current mileage.
Here is a closer look at TrueCar’s top brands and models:
Top Brands for Gen Y Buyers
(Ranked by percentage of buyers in Gen Y)
1. Scion — 21.2%
2. Mitsubishi — 20.3%
3. Mazda — 10.7%
4. Nissan — 9.8%
5. Volkswagen — 9.6%
6. Kia — 9.1%
7. Hyundai — 8.6%
8. Honda — 8.0%
9. Toyota — 7.6%
10. Subaru — 7.3%
Top Models for Generation Y Buyers
(Shown with MSRP)
1. Scion tC — $18,995
2. Mitsubishi Lancer — $20,670
3. Honda Civic Si – $22,975
4. Toyota Yaris Sedan — $13,915
5. Ford Focus Coupe — $17,365
6. Scion xD — $15,830
7. Volkswagen GLI — $25,365
8. Subaru Impreza – $19,220
9. Kia Forte — $15,690
10. Toyota Corolla — $16,660
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07-09-11 | 02:27 PM
#9
Lexus Fanatic
Joined: May 2003
Posts: 7,864
Likes: 0
From: Massachusetts
Well, it's good to see Scion accomplish what it was intended to do.
Honda is surprising at #8. I would have guessed #2.
Mitsubishi? C'mon, they basically have one model being bought by the younger - the Lancer. The Eclipse is on its way out with poor sales. Mitsubishi is an irrelevant company in my eyes.
I drive the #4 model, the Yaris sedan.
I'm 32 (end of X gen) and bought it because it does everything I need. More reliable than an army tank, 40 mpg, surprisingly roomy, and actually pretty fun to drive (manual).
Honda is surprising at #8. I would have guessed #2.
Mitsubishi? C'mon, they basically have one model being bought by the younger - the Lancer. The Eclipse is on its way out with poor sales. Mitsubishi is an irrelevant company in my eyes.
I drive the #4 model, the Yaris sedan.
I'm 32 (end of X gen) and bought it because it does everything I need. More reliable than an army tank, 40 mpg, surprisingly roomy, and actually pretty fun to drive (manual).
07-09-11 | 08:53 PM
#10
Lexus Champion
Joined: Feb 2011
Posts: 3,309
Likes: 31
From: Canada
Trouble for Detroit? Gen Y’s Favorite Cars Are Foreign
By Jerry Edgerton | CBS MoneyWatch
Yahoo News Link
A new study of Gen Y drivers’ preferences looks like more bad news for the Detroit automakers.
Auto pricing site TrueCar.com tracked both the brands and individual models bought in 2009 and 2010 by Generation Y shoppers (ages 18 to 27). The results should strike fear into the hearts of U.S. auto executives: Not a single brand from a domestic automaker made the Top 10 list.
Scion, a brand set up by Toyota Motor specifically aimed at young buyers, was No. 1. Mitsubishi, a name that barely registers with older shoppers, came in second.
Some other brands among the top 10, such as Honda and Volkswagen, have a long record of youth appeal. But even the Korean corporate twins Hyundai and Kia, which have recorded surging sales in recent years, appear to have extended their appeal to young buyers as well as older ones.
Though Ford, Chrysler and the General Motors brands have enjoyed big sales gains this year, the TrueCar list portends some future trouble, as young buyers who like their first car often become loyal to that brand. “It is important for an auto maker to get a young buyer into their vehicle from the beginning, in hopes of continued loyalty to the brand,” says TrueCar chief analyst Jesse Toprak.
To that end, the domestic brands do still have the chance to get a boost from new models — such as the Ford Fiesta and Chevrolet Cruze — that offer plenty of features at an affordable price, notes Toprak’s colleague, TrueCar analyst Kristen Andersson. “Buyers from this generation are looking for vehicles that have the technology features they are accustomed to built into the vehicle at an affordable price, ” she says.
Not surprisingly, seven of the top 10 models preferred by young buyers have a list price of under $20,000. The top three models — the Scion tC, Mitsubishi Lancer and Honda Civic Si — offer a wide choice of features for personal customization.
The only U.S. model on the top 10 list of individual models is the Ford Focus coupe, which offers the SYNC system — Ford’s pioneering voice-command system, which controls mobile phones and to play music and is particularly popular with young buyers.
Other tech features that attract young buyers include the Lancer’s navigation system, with its own music server, and a Honda Civic Si system that lets the driver customize an on-screen display with options like current mileage.
Here is a closer look at TrueCar’s top brands and models:
Top Brands for Gen Y Buyers
(Ranked by percentage of buyers in Gen Y)
1. Scion — 21.2%
2. Mitsubishi — 20.3%
3. Mazda — 10.7%
4. Nissan — 9.8%
5. Volkswagen — 9.6%
6. Kia — 9.1%
7. Hyundai — 8.6%
8. Honda — 8.0%
9. Toyota — 7.6%
10. Subaru — 7.3%
Top Models for Generation Y Buyers
(Shown with MSRP)
1. Scion tC — $18,995
2. Mitsubishi Lancer — $20,670
3. Honda Civic Si – $22,975
4. Toyota Yaris Sedan — $13,915
5. Ford Focus Coupe — $17,365
6. Scion xD — $15,830
7. Volkswagen GLI — $25,365
8. Subaru Impreza – $19,220
9. Kia Forte — $15,690
10. Toyota Corolla — $16,660
By Jerry Edgerton | CBS MoneyWatch
Yahoo News Link
A new study of Gen Y drivers’ preferences looks like more bad news for the Detroit automakers.
Auto pricing site TrueCar.com tracked both the brands and individual models bought in 2009 and 2010 by Generation Y shoppers (ages 18 to 27). The results should strike fear into the hearts of U.S. auto executives: Not a single brand from a domestic automaker made the Top 10 list.
Scion, a brand set up by Toyota Motor specifically aimed at young buyers, was No. 1. Mitsubishi, a name that barely registers with older shoppers, came in second.
Some other brands among the top 10, such as Honda and Volkswagen, have a long record of youth appeal. But even the Korean corporate twins Hyundai and Kia, which have recorded surging sales in recent years, appear to have extended their appeal to young buyers as well as older ones.
Though Ford, Chrysler and the General Motors brands have enjoyed big sales gains this year, the TrueCar list portends some future trouble, as young buyers who like their first car often become loyal to that brand. “It is important for an auto maker to get a young buyer into their vehicle from the beginning, in hopes of continued loyalty to the brand,” says TrueCar chief analyst Jesse Toprak.
To that end, the domestic brands do still have the chance to get a boost from new models — such as the Ford Fiesta and Chevrolet Cruze — that offer plenty of features at an affordable price, notes Toprak’s colleague, TrueCar analyst Kristen Andersson. “Buyers from this generation are looking for vehicles that have the technology features they are accustomed to built into the vehicle at an affordable price, ” she says.
Not surprisingly, seven of the top 10 models preferred by young buyers have a list price of under $20,000. The top three models — the Scion tC, Mitsubishi Lancer and Honda Civic Si — offer a wide choice of features for personal customization.
The only U.S. model on the top 10 list of individual models is the Ford Focus coupe, which offers the SYNC system — Ford’s pioneering voice-command system, which controls mobile phones and to play music and is particularly popular with young buyers.
Other tech features that attract young buyers include the Lancer’s navigation system, with its own music server, and a Honda Civic Si system that lets the driver customize an on-screen display with options like current mileage.
Here is a closer look at TrueCar’s top brands and models:
Top Brands for Gen Y Buyers
(Ranked by percentage of buyers in Gen Y)
1. Scion — 21.2%
2. Mitsubishi — 20.3%
3. Mazda — 10.7%
4. Nissan — 9.8%
5. Volkswagen — 9.6%
6. Kia — 9.1%
7. Hyundai — 8.6%
8. Honda — 8.0%
9. Toyota — 7.6%
10. Subaru — 7.3%
Top Models for Generation Y Buyers
(Shown with MSRP)
1. Scion tC — $18,995
2. Mitsubishi Lancer — $20,670
3. Honda Civic Si – $22,975
4. Toyota Yaris Sedan — $13,915
5. Ford Focus Coupe — $17,365
6. Scion xD — $15,830
7. Volkswagen GLI — $25,365
8. Subaru Impreza – $19,220
9. Kia Forte — $15,690
10. Toyota Corolla — $16,660
I thought the Corolla was designed for the PARENTS of the Gen-Y'ers (Baby Boomers)?
07-09-11 | 09:18 PM
#11
Lexus Champion
Joined: Jan 2005
Posts: 19,935
Likes: 164
since 4 Toyota's are on the top 10 list, that just shows that Toyota is still hip but that in times of recession, people go for cheaper options.
based on this, i kind of doubt that you guys will ever see half of the options that international toyota's have :-)
based on this, i kind of doubt that you guys will ever see half of the options that international toyota's have :-)
07-09-11 | 10:21 PM
#12
Lexus Test Driver
Joined: Mar 2008
Posts: 9,754
Likes: 171
From: California
I would have never guessed Scion. They have been on the decline for many years and I don't see many new tC's or xB's. Hondas and Toyotas seem to be what all the Gen Y's are driving in my neck of L.A. Mitsubishi isn't even on the map anymore. This report sounds way off.
07-09-11 | 10:26 PM
#13
Young, over-educated, underemployed people with the desire to get a car that exudes personality without a lofty price tag.
And since this market population has been hit, so has Scion as a brand. You can't sell stuff to people who don't have the money for such an expenditure (yet). When the economy was good, Scion sold. Now that it's sour, Scion is in a rut.
07-10-11 | 01:45 AM
#14
Don't forget that the GenY market has been the hit hard with the ugly economy.
Young, over-educated, underemployed people with the desire to get a car that exudes personality without a lofty price tag.
And since this market population has been hit, so has Scion as a brand. You can't sell stuff to people who don't have the money for such an expenditure (yet). When the economy was good, Scion sold. Now that it's sour, Scion is in a rut.
Young, over-educated, underemployed people with the desire to get a car that exudes personality without a lofty price tag.
And since this market population has been hit, so has Scion as a brand. You can't sell stuff to people who don't have the money for such an expenditure (yet). When the economy was good, Scion sold. Now that it's sour, Scion is in a rut.
I don't know where these young people get the money to even buy a new car. I could never afford a brand new TC or Corolla because there aren't any jobs that pay more than $10 an hour around here
.
