Currently, the younger generation isn’t buying cars as often as automaker may like. Because of the rising cost of education, many younger buyers can’t afford to pay off their loans, as well as afford a car payment, insurance, and gas. Although many automakers continue their efforts to entice young buyers, many have become more suited to public transportation.
Social media campaigns, video game placements, sponsorships, and peer-to-peer advertising are all ways automakers are trying to reach this group of buyers, as they will be tomorrow’s car buyers.
Many recent college graduates have even started biking as it’s more affordable and offers certain advantages. This group of buyers is looking at the car-buying process through a more practical lens than those of other generations. The cost of driving continues to increase, putting a strain on their already tight budgets. Millennials are looking for good value, small cars to navigate urban areas easily, the latest in-car technology, and great fuel economy.
Ford seems to be one of the only automakers catering exclusively to this generation with its new Ford Fiesta. As they account for 25 percent of Fiesta buyers, the automaker must be doing something right. Along with Ford, Chevrolet has increased its share of buyers under the age of 25 by 1.5 percent, thanks to its Cruze, Sonic, and Spark compact vehicles.
Do you think young people are a lost cause because of high debt and unemployment? Or will today’s young people eventually come back?
Source: Automotive News (Subscription required)