September 20, 2024 • 26 mins
In this podcast episode, Jeffery Bellant and Kirsten Von Busch discuss the latest Automotive Consumer Trends and Analysis Report, focusing on generational insights in automotive purchases. They explore how different generations approach car buying, the implications for dealers, and the trends in electric vehicle registrations. The conversation highlights the importance of understanding consumer behavior and adapting marketing strategies accordingly, especially in a competitive used car market.
Chapters
00:00 Introduction to Automotive Consumer Trends
01:22 Generational Insights in Automotive Purchases
10:10 Market Trends and Implications for Dealers
17:28 Future of Electric Vehicles and Generational Shifts
21:30 Conclusion and Resources for Dealers
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
S1 (00:01):
Competition is fierce in the used car arena. So how
can you ensure that your pre-owned inventory stands above the rest?
Success starts with the quality of your leads. AutoTrader for
independence offers products that help drive high quality leads for
independent dealers like you.
S2 (00:25):
Welcome to Used Car News podcast. Used Car News is
your top source for fast and reliable news that car
dealers can rely on for this evolving industry. Here are
this month's top stories Amelung. Bring in that new generation
FTC test. Legal theory in suit against large dealer group
dealer sales manager plead guilty to money laundering. But first
(00:48):
we sit down with Kristen Van Busch, the director of
product marketing at Experian.
S3 (00:53):
Hello, everyone, and welcome to the Used Car News podcast.
My name is Jeffrey Blount. I'm managing editor over at
Used Car News. And today we've got a kind of
a special podcast. We have Kirsten Von Busch. She is
a director of product marketing over at Experian. Did I
get that title right, Kirsten?
S4 (01:11):
You did?
S3 (01:12):
Oh, great. Welcome, welcome. I appreciate you being here.
S4 (01:15):
Well, thank you so much for having me, Jeffrey. It's
a pleasure to be here.
S3 (01:18):
Awesome. Yeah. We love the information we get from Experian.
Whether it's the automotive finance reports, we get Melinda Zabriskie,
and now this is a new one with you we
keep hearing about. We know that we have a market
now where we have more generations than ever being involved
in it, because people are living longer. This special report
of yours, could you tell us what it's called and
what you guys were looking at?
S4 (01:39):
Yes, absolutely. So every quarter we put out a report,
the Automotive Consumer Trends and Analysis Report. And typically we
focus on a specific vehicle segment. However we wanted to
share with the market some overall generational insights. So this
is a special report that we published that focuses solely
(02:00):
on generational insights for the overall automotive market.
S3 (02:04):
I saw that you did both new and used. So
obviously we'll we'll touch on a little bit on both
of them, whatever you'd like. But I'd start off with
the used. Now just folks for listening. I know it's
going to be a little difficult because you don't have
the charts in front of you, but at the end,
Chris will probably give you some information about how you
can kind of access this type of information. I'm on
page six of the chart. It talks about automotive loan
(02:27):
average automotive loan amount by generation. Do these total loan
amounts by generation correlate to anything specific? I mean, is
it earning power or some other factor? And before you
answer that, could you let people know what generations you
are looking at, you know, and how what the year
break is?
S4 (02:44):
Yeah, absolutely. Why don't I start with that from just
a definition perspective. Thank you. Thank you. So absolutely. So
from a generational breakout we have identified Gen Z. Now
we are defining Gen Z as people born between 1996
and 2015, so their current age would be 9 to 28.
(03:06):
Now you might be thinking nine. Well, they're not buying vehicles.
You're right. So keep in mind, for the Gen Z analysis,
the insights are only for buyers over the age of 18.
S3 (03:18):
Excellent. That's great. That's great. That helps.
S4 (03:21):
And then millennials are defined as those born between 1981
and 1995. So their current age would be 29 to 43.
Gen X are individuals born between 1965 and 1980. Their
current got in there.
S3 (03:40):
I just got in there. Yeah.
S4 (03:42):
Just snuck in. Huh? Yeah. Their current age being 44
to 59. And then we have boomers. So baby boomers
born between 1946 and 1964. Their current age being 60
to 78 years old. And then last but not least,
for this analysis, we have the silent generation. And those
(04:06):
individuals were born between 1928 and 1945. Their current age
being 79 to 96 years old.
S3 (04:16):
Okay. Yeah, that was one I hadn't heard of. The
silent generation. That's good. So now on page six, this
is good. Then that helps me explain the millennial part
of it. What does this tell us? This the out
of automotive average automotive loan amount by generation. What did
you learn what jumped out at you.
S4 (04:33):
Yeah I think this really just provides some initial introductory insight.
So as we're looking at this, I mean there's a
lot of different things going into the automotive loan amount, right?
I mean, what is the price of the vehicle being
first and foremost, what is the budget that somebody has
(04:54):
to be able to purchase a vehicle. But if we
look at this from Gen Z to millennials to Gen
X to Boomer to silent. It's a little bit of
a bell curve, right? Where Gen Z having the lowest
average automotive loan amount increasing to millennials increasing still to
Gen X decreasing a little bit with boomers and further
(05:16):
decreasing with the silent generation. So certainly I think that
tells a story about the buyer and their purchase interest
and kind of the point in life that they are at.
S3 (05:28):
Yeah. So the top the highest amount was 32,000, almost
33,000 Gen X, almost 32,000 for millennials and just under
31 for boomers. And then the other two were under 30,000.
S4 (05:41):
That is correct. Yes. And that, as you said before,
is for the overall average loan amount for the last
12 months. So it is for new and used retail purchases.
S3 (05:53):
Now, did those numbers kind of correlate with the next
chart talked about average monthly payment by generation. Those look
kind of similar. Is that the way you saw it?
S4 (06:02):
Yeah. So from a visual perspective for the audience here,
they don't have the chart in front of them. Again,
it's kind of a bell curve a little bit right
where the Gen Z generation has the lowest average monthly
payment for both leases as well as loans increasing for
(06:23):
millennials and increasing for Gen X, and then decreasing for
boomers and for silence. So just as a frame of
reference for everybody on the line here, Gen X, the
average monthly payment for leases is $650.04. And the average
(06:44):
loan amount monthly payment was $626.91. And that again is
for the last 12 months, new and used retail purchases. Okay, great.
S3 (06:56):
Yeah. And then everything else is a little bit lower.
The millennials is a tad lower. Boomers are a little
bit lower. And then of course Gen Z and silent
brought up the rear end.
S5 (07:05):
Mhm.
S3 (07:06):
You know the um page 30 jumped out at me.
It talked about the five year generational trend for used
retail registration. So these are people buying used cars correct.
S4 (07:16):
On page 30. That is correct sir.
S5 (07:18):
Okay.
S3 (07:19):
And what does that what does that chart tell you.
Because it looked like we have, um, millennials a little
higher Gen X actually a little lower than millennials. And
then there's a big drop off.
S4 (07:29):
Yeah. So as you said, this is looking at the
five year generational trend for used retail registrations. Now over
time the silent generation their percentage has decreased.
S5 (07:43):
Of course you expect that right.
S4 (07:44):
I mean as that population ages um the reverse the
percentages for Gen Z have significantly increased, which again, as
we would expect, as that population Ages and becomes of
buying age. But I think the most interesting piece on
this is the difference from boomers. So boomers had 19%
(08:09):
market share for used retail registrations. So 19.9 is the
exact amount. Now comparing that to Gen X where Gen
X has 31.1% and millennials having 31.4%, so they're just
(08:29):
neck and neck and those two generations then. But there's
such a big gap between those 31 numbers and that 19%
for boomers. So boomers certainly overindexing for new purchases.
S3 (08:46):
Is that what the difference is? Right. Mhm.
S5 (08:48):
Absolutely.
S3 (08:49):
Interesting. Yeah. Because that jumped out at me too because
that was you know again odd from what we were seeing.
What about other things on the other side that you see,
first of all, and I didn't ask you this beforehand,
and maybe you guys don't didn't look at this, but
I was wondering, did you look at the idea of
like a generation Z where I see my nephews who
are in that area and some of them didn't get
(09:11):
their licenses real quick, or some gals don't get their
license quick, like maybe I did when I was that age.
Did you guys notice anything like that, or is that
something you didn't look at?
S4 (09:20):
Well, we didn't further segment the generation, um, by age now.
I mean, certainly we would have the ability to look
into additional detail by age, but we just grouped it
as a whole for the entire generation at this point.
S3 (09:33):
That's cool. And what else? What are some of the
things that popped out at you at this study? Now,
did you have like, assumptions going into it?
S4 (09:41):
Yeah, I mean, certainly we had some hypothesis going into this.
And the interesting thing with data, Jeffrey, that I love
is even if it proves out what you initially thought
it so helpful to have the data backing your assumptions.
S5 (09:56):
Right.
S4 (09:57):
So you're really, truly making data driven decisions and not
just basing it off of assumptions or conjecture. So some
of the expectations like silent percentages have decreased, gen Z
percentages have increased. That's obviously a really simple example. But
yeah those held true. Now there were other things though
(10:19):
that I was surprised by. You know, we just mentioned
one where boomers having a much lower market share percentage
for used retail registrations compared to Millennials and Gen X.
So that was certainly something that was interesting and a
number of different findings on the new side as well.
(10:41):
I know we're focusing on youth conversation today, but there
were a number of things that jumped out and surprised me.
S5 (10:48):
Yeah, well, you know, I want.
S3 (10:50):
To go to those. I do want to ask one question, though.
On the on the youth. See this is I think
this is one of the things that can help some
of our readers. A lot of whom are independent dealers,
that they can look at their marketing. And of course,
I know it all depends on where your market is,
what your what the people in the demographics are in
your area. But it is interesting for, for example, that
boomer figure to say, okay, if I'm not in a
(11:12):
boomer area, boy, that makes sense that maybe I shouldn't
be heavily focused on that in my marketing or or
do something to not go after them, because that might
not be my target. Does that sound.
S5 (11:23):
Right?
S4 (11:24):
Yeah. Yeah, absolutely. And let's say I mean, certainly electric
vehicles are in the headlines regularly these days, and we
make assumptions that electric vehicles are oftentimes purchased by a
younger demographic. Well, if we look at the chart information
on slide 34, we looked at used retail registrations by
(11:49):
generation and fuel type. And for example, millennials overall are
purchasing 31% of used retail vehicles. However, when we look
at that 31% for millennials, they have a much higher
percentage of activity for electric vehicles.
S5 (12:08):
Yeah.
S4 (12:08):
So that's where I say, you know, a group may
be overindexing in that case. Or boomers, for example, are
under indexing for used electric vehicles, as are Gen Z.
And that might be something that, you know, you wouldn't
necessarily assume going in. It is conjecture on my part,
(12:29):
but I would say from a Gen Z perspective, that
may have more to do with the purchase price of
those vehicles than the interest in the fuel type. But again,
it really helps for your marketing efforts to have these insights,
to be able to make choices for how you can
advocate for the inventory on your lot and for your prospects?
S5 (12:53):
Yeah, I was going.
S3 (12:54):
To say that. It is interesting because you think, okay,
younger people would be more inclined to go after EVs,
but maybe with prices and interest rates and things like that,
that you would, might think the older generations might be
able to have affordability. So it is interesting that you
still see the millennials with that high percentage of it.
And and I guess I'm not surprised because of the
(13:14):
interest that the boomers I guess I'm just surprised that
the the millennials would be higher than the Gen Xers.
I would think they would have a little bit more
spending power. But that's interesting. Yeah.
S4 (13:23):
Yeah, absolutely. Where I mean, the Gen Xers in the
index right around the same as their overall rate. So
meaning that, you know, the percentage of electrics they're buying
is about the same percentage as used vehicles. They're buying
as a whole where millennials are buying more EVs from
a percentage perspective. So very interesting.
S1 (13:44):
Competition is fierce in the used car arena. So how
can you ensure that your pre-owned inventory stands above the rest?
Success starts with the a quality of your leads. AutoTrader
for independence offers products that help drive high quality leads
for independent dealers like you.
S3 (14:01):
So what are some of the things on the new
car side that you that jumped out at you, that
you really was interested in?
S4 (14:06):
Yeah. Now, a couple of things on the new car side.
So we looked at overall activity. Of course, we looked
at five year trends. Um, we talked about boomers having
a lower index for used retail vehicles. Well, on the
flip side, they have a higher percentage of activity for
(14:29):
new retail vehicles. So that certainly held true.
S5 (14:33):
Okay.
S4 (14:34):
Now we also looked at information by class. So luxury
non-luxury by vehicle segment and by fuel type. And one
other thing. Just since we were talking about electric vehicles
to call out that I thought was really interesting is we,
you know, we hear all the time in the headlines
(14:57):
that the EV market has slowed. And I'm I'm not
disagreeing with that statement as a whole. Now, with that
being said, when we look at the data for the
year 2024, when we did this analysis, we had information
through the end of May, and Millennials and Gen Z,
(15:18):
their percentage of market share for new electric vehicle registrations
continued to increase. So it was still higher than it
was for 2023 calendar year as a whole. Now Gen
X and boomers decreased. Not a lot necessarily, but from
(15:39):
a percentage perspective they went down. So again, it's not
the market as a whole, but really digging into the
data and understanding where those nuances are. So then you
can plan and take action accordingly.
S5 (15:53):
So when you say it's.
S3 (15:54):
Not the market, it's it's it's the it's the specific
people or segments that are the thing to look.
S5 (16:00):
At.
S4 (16:00):
Yes, absolutely.
S5 (16:02):
And for you guys.
S3 (16:03):
When you put this study together and I'll get back
to your other things as well. But when you put
the study together, what was the purpose in this one,
in this generational thing? Was it just a matter of
you had this data on all these generations and wanted
to see what it said?
S4 (16:18):
Yeah. So so that was part of it. I mean,
where of course, I love digging into the data details,
but how can we apply the insights is so important.
And right now franchise independent dealers are having to do
more marketing than they have necessarily had to do in
the last several years where we're not in that order
(16:40):
taking environment anymore. So I would always recommend that somebody
dig into their own data and understand their customers and
their prospects. But if that's not a luxury available to someone,
these are some really great, broad generalities that can still
provide some insight to someone where if I don't have
(17:03):
maybe all the detail about my own data analysis. But
I know a lot of my consumers are millennials. Okay,
how might I market to them? These are some overall
findings that I could certainly apply for my marketing strategy
and for my individual campaign.
S3 (17:20):
That's excellent. It is. What is interesting is both on
the new and used cars side, when you have these
five year generational trends, you get, okay, those aren't going
to be you know, the past is not necessarily the future,
but if you see a trend going a certain way,
eaves is a really good example. But then you can
kind of it kind of helps you anticipate what you
should do or where things are going.
S4 (17:41):
Absolutely.
S3 (17:42):
And now the other thing. Anything else on the news side?
I know you you looked at audience models, you know,
built on different factors and and looking at information about
what the characteristics of certain cars were. Was there anything
else that jumped out at you? Maybe even something that
you didn't expect?
S4 (17:59):
All right. Something that I didn't expect. So one thing
that we looked at with the new analysis was we
looked at the top ten market share by model for
each generation. And this is where like getting into the
data details I think really matters. Because if you looked
(18:21):
at just kind of the headlines alone, the top model
for Gen Z, for example, is the Honda Civic. Okay.
Now the top model for millennials is also the Honda Civic. However,
while those statements are 100% accurate, the percentage of registrations
(18:43):
for Gen Z the Honda Civic represents almost 4% 3.9.
Now the next closest is the Toyota Rav4 at 3%.
Now when we look at millennials, though, again, it's the
civic and the Rav4. But they are neck and neck
2.6 and 2.6. Less than 2/10 of a decimal point difference.
(19:06):
Where I think it just starts to really illustrate that
story of what vehicles are people looking at, what they're
interested in, what their purchasing power certainly changes as the
population ages. And that's why it's so important to look
at the overall picture. But the detailed numbers as well.
S3 (19:27):
Yeah, I saw the Gen X word had. Their number
one was Ford F-150, and the second one was the
Silverado 1500, which I thought that was kind of interesting.
I know that that had to be work related or
wasn't it? Because that's, you know, that's a bigger truck.
So I thought that was kind of interesting.
S4 (19:42):
Yeah, absolutely. And then, you know, when we look at boomers,
for example, their number one was the Honda CRV. So again,
a little bit larger, but not quite as large as
we were looking at for the GMC's top vehicle.
S3 (19:59):
That is interesting for you. What does this do for
you in terms of thinking? Okay, I've got this kind
of information you're doing. You're looking at it quarterly. You
said correct.
S5 (20:08):
Overall, yes.
S3 (20:09):
And so for you, as you look ahead, is there
something that you're seeing that maybe you didn't look at,
you haven't looked at until now. And you're thinking you
got to keep a closer eye on this type of information.
Or is it going is do you see this kind
of continuing in the same way?
S5 (20:25):
Yeah.
S4 (20:26):
No, that does make sense. So certainly from a trend perspective,
I am very curious to see what happens in the
EV space. Right. You know, do those sales flow. Do
they continue to increase. Is it at a smaller percentage.
What happens there. That will be very interesting. And then
also as the Gen Z category Ages and they get older.
(20:50):
What is their purchase interest and what? Vehicles are they
purchasing as they purchase a larger volume of vehicles? So
we'll be watching both of those very closely.
S5 (21:01):
Yeah, this is great.
S3 (21:02):
This is something we've interviewed Melinda Zabritski from the automotive
finance site a few times. So this is definitely something
I'd love to revisit with you, maybe towards the back
end of the year or maybe early next year, if
that's okay. Kirsten.
S4 (21:13):
Yeah, absolutely. You know, this was the first time we
published this specific special report, and I really would like
to make it an annual event so we can see
how it changes and grows and expands and, you know,
where there are differences over time.
S3 (21:30):
Now, is this available to anyone? I mean, could dealers or,
you know, some of our readers get a copy of
this report?
S4 (21:36):
Yes, absolutely. So this is available right now to everyone.
And it is. I also want to make sure everybody
knows it is absolutely free to everyone.
S5 (21:48):
Oh, we like that.
S4 (21:48):
Yes it is. So we have a blog post that
provides a nice little summary about this report, and then
it provides a link to the full report that someone
can download to review all the details that we discussed
today and more, and I'm happy to provide that link.
S3 (22:09):
Yeah I did, that was myself. It was pretty great.
So it's a special report. Automotive Consumer Trends and Analysis.
And then the special report part of it is Generational insights.
So definitely so is it like would you would you
go to Experian. Com that type of thing.
S5 (22:22):
Yeah.
S4 (22:22):
So it is available under Experian Automotive. We have a
blog section. And if you would be so kind as
to include that link to your audience, they can get
right to it. Otherwise I can read off the URL
to them, but it is w-w-w-wait.
S3 (22:41):
If we go to Experian Automotive blog that I'm sure
they can find it.
S5 (22:45):
Um, yep. Absolutely.
S3 (22:46):
That's awesome, I appreciate it. Kristin Von Bush again, director
of Product Marketing for Over Experience for Automotive Consumer Trends
and Analysis. This is really good and definitely will maybe
something do something in the in the future in the
print edition to kind of help out with the chart
reading and everything. But boy, I really appreciate you looking
at these things. Obviously, generational stuff is a bigger issue
(23:08):
now because we have so many people in the marketplace.
So I do appreciate you taking time with us here
on Used Car News Podcast.
S4 (23:13):
My pleasure. Thank you so much for having me.
S3 (23:16):
Have a great day.
S1 (23:17):
Competition is fierce in the used car arena, so how
can you ensure that your pre-owned inventory stands above the rest?
Success starts with the quality of your leads. AutoTrader for
independence offers products that help drive high quality leads for
independent dealers like you.
S2 (23:35):
Craig Emily's career in the auto auction industry began in 1993,
when he answered a newspaper ad for a credit collections
manager at the Baltimore Washington Auto Exchange. Initially hesitant, he
was captivated by the fast paced auction environment and quickly
advanced to roles like office manager and fleet lease manager.
Amelung joined Manheim in 2002, eventually overseeing multiple market centers.
(24:00):
His involvement with the National Auto Auction Association, or Nar,
grew through active participation in committees and legislative engagement, eventually
leading to his role on the board as the incoming
president of the Nar. Amelung aims to enhance member participation,
improve administrative practices, and engage in new generation in the industry.
(24:22):
Building on the work of his predecessors to leave the
association better than he found it. Last month, the FTC
filed an administrative complaint against a large dealer group, including
its parent company and three Texas dealerships, for alleged credit
discrimination and unauthorized charges for voluntary protection products. The FTC
(24:46):
claims these dealerships imposed hidden fees on customers, particularly targeting
Black and Latino customers without their express consent. The case
will be reviewed by an administrative law judge with a
hearing set for April 2025. If the FTC finds violations,
it may issue a cease and desist order, which the
dealerships can appeal. This case offers a rare chance for
(25:09):
transparency in FTC procedures, as most similar disputes are settled
out of court. The outcome could have significant implications for
how dealerships handle credit terms and customer consent in future transactions.
Charlotte car dealership owner John Harvey Martin and sales manager
Vincent Emmanuel Jefferson Jr have pleaded guilty to money laundering
(25:31):
conspiracy charges. The scheme involves selling around 20 luxury vehicles
to an individual known as GD, whom the defendants knew
or should have known was a drug dealer. They accepted
over $520,000 in cash from GD using straw purchasers to
hide Gd's identity and the illicit source of funds. Martin
(25:52):
also used funds from these transactions for property renovations and
to buy the Scorpio nightclub, concealing Gd's ownership interest. Both
Martin and Jeferson face up to 20 years in prison
after being released on bond. Thanks for listening to Used
Car News podcast. Each month, we'll bring you fast and
reliable news that car dealers can rely on for this
(26:14):
evolving industry. For a free subscription of Used Car News,
please go to Used Car news.com. This podcast is a
production of BG Group. Make sure to share us on
social media and like and follow wherever you get your podcasts.
S1 (26:27):
Competition is fierce in the used car arena, so how
can you ensure that your pre-owned inventory stands above the rest?
Success starts with the quality of your leads. AutoTrader for
independence offers products that help drive high quality leads for
independent dealers like you.
Competition is fierce in the used car arena. So how
can you ensure that your pre-owned inventory stands above the rest?
Success starts with the quality of your leads. AutoTrader for
independence offers products that help drive high quality leads for
independent dealers like you.
S2 (00:25):
Welcome to Used Car News podcast. Used Car News is
your top source for fast and reliable news that car
dealers can rely on for this evolving industry. Here are
this month's top stories Amelung. Bring in that new generation
FTC test. Legal theory in suit against large dealer group
dealer sales manager plead guilty to money laundering. But first
(00:48):
we sit down with Kristen Van Busch, the director of
product marketing at Experian.
S3 (00:53):
Hello, everyone, and welcome to the Used Car News podcast.
My name is Jeffrey Blount. I'm managing editor over at
Used Car News. And today we've got a kind of
a special podcast. We have Kirsten Von Busch. She is
a director of product marketing over at Experian. Did I
get that title right, Kirsten?
S4 (01:11):
You did?
S3 (01:12):
Oh, great. Welcome, welcome. I appreciate you being here.
S4 (01:15):
Well, thank you so much for having me, Jeffrey. It's
a pleasure to be here.
S3 (01:18):
Awesome. Yeah. We love the information we get from Experian.
Whether it's the automotive finance reports, we get Melinda Zabriskie,
and now this is a new one with you we
keep hearing about. We know that we have a market
now where we have more generations than ever being involved
in it, because people are living longer. This special report
of yours, could you tell us what it's called and
what you guys were looking at?
S4 (01:39):
Yes, absolutely. So every quarter we put out a report,
the Automotive Consumer Trends and Analysis Report. And typically we
focus on a specific vehicle segment. However we wanted to
share with the market some overall generational insights. So this
is a special report that we published that focuses solely
(02:00):
on generational insights for the overall automotive market.
S3 (02:04):
I saw that you did both new and used. So
obviously we'll we'll touch on a little bit on both
of them, whatever you'd like. But I'd start off with
the used. Now just folks for listening. I know it's
going to be a little difficult because you don't have
the charts in front of you, but at the end,
Chris will probably give you some information about how you
can kind of access this type of information. I'm on
page six of the chart. It talks about automotive loan
(02:27):
average automotive loan amount by generation. Do these total loan
amounts by generation correlate to anything specific? I mean, is
it earning power or some other factor? And before you
answer that, could you let people know what generations you
are looking at, you know, and how what the year
break is?
S4 (02:44):
Yeah, absolutely. Why don't I start with that from just
a definition perspective. Thank you. Thank you. So absolutely. So
from a generational breakout we have identified Gen Z. Now
we are defining Gen Z as people born between 1996
and 2015, so their current age would be 9 to 28.
(03:06):
Now you might be thinking nine. Well, they're not buying vehicles.
You're right. So keep in mind, for the Gen Z analysis,
the insights are only for buyers over the age of 18.
S3 (03:18):
Excellent. That's great. That's great. That helps.
S4 (03:21):
And then millennials are defined as those born between 1981
and 1995. So their current age would be 29 to 43.
Gen X are individuals born between 1965 and 1980. Their
current got in there.
S3 (03:40):
I just got in there. Yeah.
S4 (03:42):
Just snuck in. Huh? Yeah. Their current age being 44
to 59. And then we have boomers. So baby boomers
born between 1946 and 1964. Their current age being 60
to 78 years old. And then last but not least,
for this analysis, we have the silent generation. And those
(04:06):
individuals were born between 1928 and 1945. Their current age
being 79 to 96 years old.
S3 (04:16):
Okay. Yeah, that was one I hadn't heard of. The
silent generation. That's good. So now on page six, this
is good. Then that helps me explain the millennial part
of it. What does this tell us? This the out
of automotive average automotive loan amount by generation. What did
you learn what jumped out at you.
S4 (04:33):
Yeah I think this really just provides some initial introductory insight.
So as we're looking at this, I mean there's a
lot of different things going into the automotive loan amount, right?
I mean, what is the price of the vehicle being
first and foremost, what is the budget that somebody has
(04:54):
to be able to purchase a vehicle. But if we
look at this from Gen Z to millennials to Gen
X to Boomer to silent. It's a little bit of
a bell curve, right? Where Gen Z having the lowest
average automotive loan amount increasing to millennials increasing still to
Gen X decreasing a little bit with boomers and further
(05:16):
decreasing with the silent generation. So certainly I think that
tells a story about the buyer and their purchase interest
and kind of the point in life that they are at.
S3 (05:28):
Yeah. So the top the highest amount was 32,000, almost
33,000 Gen X, almost 32,000 for millennials and just under
31 for boomers. And then the other two were under 30,000.
S4 (05:41):
That is correct. Yes. And that, as you said before,
is for the overall average loan amount for the last
12 months. So it is for new and used retail purchases.
S3 (05:53):
Now, did those numbers kind of correlate with the next
chart talked about average monthly payment by generation. Those look
kind of similar. Is that the way you saw it?
S4 (06:02):
Yeah. So from a visual perspective for the audience here,
they don't have the chart in front of them. Again,
it's kind of a bell curve a little bit right
where the Gen Z generation has the lowest average monthly
payment for both leases as well as loans increasing for
(06:23):
millennials and increasing for Gen X, and then decreasing for
boomers and for silence. So just as a frame of
reference for everybody on the line here, Gen X, the
average monthly payment for leases is $650.04. And the average
(06:44):
loan amount monthly payment was $626.91. And that again is
for the last 12 months, new and used retail purchases. Okay, great.
S3 (06:56):
Yeah. And then everything else is a little bit lower.
The millennials is a tad lower. Boomers are a little
bit lower. And then of course Gen Z and silent
brought up the rear end.
S5 (07:05):
Mhm.
S3 (07:06):
You know the um page 30 jumped out at me.
It talked about the five year generational trend for used
retail registration. So these are people buying used cars correct.
S4 (07:16):
On page 30. That is correct sir.
S5 (07:18):
Okay.
S3 (07:19):
And what does that what does that chart tell you.
Because it looked like we have, um, millennials a little
higher Gen X actually a little lower than millennials. And
then there's a big drop off.
S4 (07:29):
Yeah. So as you said, this is looking at the
five year generational trend for used retail registrations. Now over
time the silent generation their percentage has decreased.
S5 (07:43):
Of course you expect that right.
S4 (07:44):
I mean as that population ages um the reverse the
percentages for Gen Z have significantly increased, which again, as
we would expect, as that population Ages and becomes of
buying age. But I think the most interesting piece on
this is the difference from boomers. So boomers had 19%
(08:09):
market share for used retail registrations. So 19.9 is the
exact amount. Now comparing that to Gen X where Gen
X has 31.1% and millennials having 31.4%, so they're just
(08:29):
neck and neck and those two generations then. But there's
such a big gap between those 31 numbers and that 19%
for boomers. So boomers certainly overindexing for new purchases.
S3 (08:46):
Is that what the difference is? Right. Mhm.
S5 (08:48):
Absolutely.
S3 (08:49):
Interesting. Yeah. Because that jumped out at me too because
that was you know again odd from what we were seeing.
What about other things on the other side that you see,
first of all, and I didn't ask you this beforehand,
and maybe you guys don't didn't look at this, but
I was wondering, did you look at the idea of
like a generation Z where I see my nephews who
are in that area and some of them didn't get
(09:11):
their licenses real quick, or some gals don't get their
license quick, like maybe I did when I was that age.
Did you guys notice anything like that, or is that
something you didn't look at?
S4 (09:20):
Well, we didn't further segment the generation, um, by age now.
I mean, certainly we would have the ability to look
into additional detail by age, but we just grouped it
as a whole for the entire generation at this point.
S3 (09:33):
That's cool. And what else? What are some of the
things that popped out at you at this study? Now,
did you have like, assumptions going into it?
S4 (09:41):
Yeah, I mean, certainly we had some hypothesis going into this.
And the interesting thing with data, Jeffrey, that I love
is even if it proves out what you initially thought
it so helpful to have the data backing your assumptions.
S5 (09:56):
Right.
S4 (09:57):
So you're really, truly making data driven decisions and not
just basing it off of assumptions or conjecture. So some
of the expectations like silent percentages have decreased, gen Z
percentages have increased. That's obviously a really simple example. But
yeah those held true. Now there were other things though
(10:19):
that I was surprised by. You know, we just mentioned
one where boomers having a much lower market share percentage
for used retail registrations compared to Millennials and Gen X.
So that was certainly something that was interesting and a
number of different findings on the new side as well.
(10:41):
I know we're focusing on youth conversation today, but there
were a number of things that jumped out and surprised me.
S5 (10:48):
Yeah, well, you know, I want.
S3 (10:50):
To go to those. I do want to ask one question, though.
On the on the youth. See this is I think
this is one of the things that can help some
of our readers. A lot of whom are independent dealers,
that they can look at their marketing. And of course,
I know it all depends on where your market is,
what your what the people in the demographics are in
your area. But it is interesting for, for example, that
boomer figure to say, okay, if I'm not in a
(11:12):
boomer area, boy, that makes sense that maybe I shouldn't
be heavily focused on that in my marketing or or
do something to not go after them, because that might
not be my target. Does that sound.
S5 (11:23):
Right?
S4 (11:24):
Yeah. Yeah, absolutely. And let's say I mean, certainly electric
vehicles are in the headlines regularly these days, and we
make assumptions that electric vehicles are oftentimes purchased by a
younger demographic. Well, if we look at the chart information
on slide 34, we looked at used retail registrations by
(11:49):
generation and fuel type. And for example, millennials overall are
purchasing 31% of used retail vehicles. However, when we look
at that 31% for millennials, they have a much higher
percentage of activity for electric vehicles.
S5 (12:08):
Yeah.
S4 (12:08):
So that's where I say, you know, a group may
be overindexing in that case. Or boomers, for example, are
under indexing for used electric vehicles, as are Gen Z.
And that might be something that, you know, you wouldn't
necessarily assume going in. It is conjecture on my part,
(12:29):
but I would say from a Gen Z perspective, that
may have more to do with the purchase price of
those vehicles than the interest in the fuel type. But again,
it really helps for your marketing efforts to have these insights,
to be able to make choices for how you can
advocate for the inventory on your lot and for your prospects?
S5 (12:53):
Yeah, I was going.
S3 (12:54):
To say that. It is interesting because you think, okay,
younger people would be more inclined to go after EVs,
but maybe with prices and interest rates and things like that,
that you would, might think the older generations might be
able to have affordability. So it is interesting that you
still see the millennials with that high percentage of it.
And and I guess I'm not surprised because of the
(13:14):
interest that the boomers I guess I'm just surprised that
the the millennials would be higher than the Gen Xers.
I would think they would have a little bit more
spending power. But that's interesting. Yeah.
S4 (13:23):
Yeah, absolutely. Where I mean, the Gen Xers in the
index right around the same as their overall rate. So
meaning that, you know, the percentage of electrics they're buying
is about the same percentage as used vehicles. They're buying
as a whole where millennials are buying more EVs from
a percentage perspective. So very interesting.
S1 (13:44):
Competition is fierce in the used car arena. So how
can you ensure that your pre-owned inventory stands above the rest?
Success starts with the a quality of your leads. AutoTrader
for independence offers products that help drive high quality leads
for independent dealers like you.
S3 (14:01):
So what are some of the things on the new
car side that you that jumped out at you, that
you really was interested in?
S4 (14:06):
Yeah. Now, a couple of things on the new car side.
So we looked at overall activity. Of course, we looked
at five year trends. Um, we talked about boomers having
a lower index for used retail vehicles. Well, on the
flip side, they have a higher percentage of activity for
(14:29):
new retail vehicles. So that certainly held true.
S5 (14:33):
Okay.
S4 (14:34):
Now we also looked at information by class. So luxury
non-luxury by vehicle segment and by fuel type. And one
other thing. Just since we were talking about electric vehicles
to call out that I thought was really interesting is we,
you know, we hear all the time in the headlines
(14:57):
that the EV market has slowed. And I'm I'm not
disagreeing with that statement as a whole. Now, with that
being said, when we look at the data for the
year 2024, when we did this analysis, we had information
through the end of May, and Millennials and Gen Z,
(15:18):
their percentage of market share for new electric vehicle registrations
continued to increase. So it was still higher than it
was for 2023 calendar year as a whole. Now Gen
X and boomers decreased. Not a lot necessarily, but from
(15:39):
a percentage perspective they went down. So again, it's not
the market as a whole, but really digging into the
data and understanding where those nuances are. So then you
can plan and take action accordingly.
S5 (15:53):
So when you say it's.
S3 (15:54):
Not the market, it's it's it's the it's the specific
people or segments that are the thing to look.
S5 (16:00):
At.
S4 (16:00):
Yes, absolutely.
S5 (16:02):
And for you guys.
S3 (16:03):
When you put this study together and I'll get back
to your other things as well. But when you put
the study together, what was the purpose in this one,
in this generational thing? Was it just a matter of
you had this data on all these generations and wanted
to see what it said?
S4 (16:18):
Yeah. So so that was part of it. I mean,
where of course, I love digging into the data details,
but how can we apply the insights is so important.
And right now franchise independent dealers are having to do
more marketing than they have necessarily had to do in
the last several years where we're not in that order
(16:40):
taking environment anymore. So I would always recommend that somebody
dig into their own data and understand their customers and
their prospects. But if that's not a luxury available to someone,
these are some really great, broad generalities that can still
provide some insight to someone where if I don't have
(17:03):
maybe all the detail about my own data analysis. But
I know a lot of my consumers are millennials. Okay,
how might I market to them? These are some overall
findings that I could certainly apply for my marketing strategy
and for my individual campaign.
S3 (17:20):
That's excellent. It is. What is interesting is both on
the new and used cars side, when you have these
five year generational trends, you get, okay, those aren't going
to be you know, the past is not necessarily the future,
but if you see a trend going a certain way,
eaves is a really good example. But then you can
kind of it kind of helps you anticipate what you
should do or where things are going.
S4 (17:41):
Absolutely.
S3 (17:42):
And now the other thing. Anything else on the news side?
I know you you looked at audience models, you know,
built on different factors and and looking at information about
what the characteristics of certain cars were. Was there anything
else that jumped out at you? Maybe even something that
you didn't expect?
S4 (17:59):
All right. Something that I didn't expect. So one thing
that we looked at with the new analysis was we
looked at the top ten market share by model for
each generation. And this is where like getting into the
data details I think really matters. Because if you looked
(18:21):
at just kind of the headlines alone, the top model
for Gen Z, for example, is the Honda Civic. Okay.
Now the top model for millennials is also the Honda Civic. However,
while those statements are 100% accurate, the percentage of registrations
(18:43):
for Gen Z the Honda Civic represents almost 4% 3.9.
Now the next closest is the Toyota Rav4 at 3%.
Now when we look at millennials, though, again, it's the
civic and the Rav4. But they are neck and neck
2.6 and 2.6. Less than 2/10 of a decimal point difference.
(19:06):
Where I think it just starts to really illustrate that
story of what vehicles are people looking at, what they're
interested in, what their purchasing power certainly changes as the
population ages. And that's why it's so important to look
at the overall picture. But the detailed numbers as well.
S3 (19:27):
Yeah, I saw the Gen X word had. Their number
one was Ford F-150, and the second one was the
Silverado 1500, which I thought that was kind of interesting.
I know that that had to be work related or
wasn't it? Because that's, you know, that's a bigger truck.
So I thought that was kind of interesting.
S4 (19:42):
Yeah, absolutely. And then, you know, when we look at boomers,
for example, their number one was the Honda CRV. So again,
a little bit larger, but not quite as large as
we were looking at for the GMC's top vehicle.
S3 (19:59):
That is interesting for you. What does this do for
you in terms of thinking? Okay, I've got this kind
of information you're doing. You're looking at it quarterly. You
said correct.
S5 (20:08):
Overall, yes.
S3 (20:09):
And so for you, as you look ahead, is there
something that you're seeing that maybe you didn't look at,
you haven't looked at until now. And you're thinking you
got to keep a closer eye on this type of information.
Or is it going is do you see this kind
of continuing in the same way?
S5 (20:25):
Yeah.
S4 (20:26):
No, that does make sense. So certainly from a trend perspective,
I am very curious to see what happens in the
EV space. Right. You know, do those sales flow. Do
they continue to increase. Is it at a smaller percentage.
What happens there. That will be very interesting. And then
also as the Gen Z category Ages and they get older.
(20:50):
What is their purchase interest and what? Vehicles are they
purchasing as they purchase a larger volume of vehicles? So
we'll be watching both of those very closely.
S5 (21:01):
Yeah, this is great.
S3 (21:02):
This is something we've interviewed Melinda Zabritski from the automotive
finance site a few times. So this is definitely something
I'd love to revisit with you, maybe towards the back
end of the year or maybe early next year, if
that's okay. Kirsten.
S4 (21:13):
Yeah, absolutely. You know, this was the first time we
published this specific special report, and I really would like
to make it an annual event so we can see
how it changes and grows and expands and, you know,
where there are differences over time.
S3 (21:30):
Now, is this available to anyone? I mean, could dealers or,
you know, some of our readers get a copy of
this report?
S4 (21:36):
Yes, absolutely. So this is available right now to everyone.
And it is. I also want to make sure everybody
knows it is absolutely free to everyone.
S5 (21:48):
Oh, we like that.
S4 (21:48):
Yes it is. So we have a blog post that
provides a nice little summary about this report, and then
it provides a link to the full report that someone
can download to review all the details that we discussed
today and more, and I'm happy to provide that link.
S3 (22:09):
Yeah I did, that was myself. It was pretty great.
So it's a special report. Automotive Consumer Trends and Analysis.
And then the special report part of it is Generational insights.
So definitely so is it like would you would you
go to Experian. Com that type of thing.
S5 (22:22):
Yeah.
S4 (22:22):
So it is available under Experian Automotive. We have a
blog section. And if you would be so kind as
to include that link to your audience, they can get
right to it. Otherwise I can read off the URL
to them, but it is w-w-w-wait.
S3 (22:41):
If we go to Experian Automotive blog that I'm sure
they can find it.
S5 (22:45):
Um, yep. Absolutely.
S3 (22:46):
That's awesome, I appreciate it. Kristin Von Bush again, director
of Product Marketing for Over Experience for Automotive Consumer Trends
and Analysis. This is really good and definitely will maybe
something do something in the in the future in the
print edition to kind of help out with the chart
reading and everything. But boy, I really appreciate you looking
at these things. Obviously, generational stuff is a bigger issue
(23:08):
now because we have so many people in the marketplace.
So I do appreciate you taking time with us here
on Used Car News Podcast.
S4 (23:13):
My pleasure. Thank you so much for having me.
S3 (23:16):
Have a great day.
S1 (23:17):
Competition is fierce in the used car arena, so how
can you ensure that your pre-owned inventory stands above the rest?
Success starts with the quality of your leads. AutoTrader for
independence offers products that help drive high quality leads for
independent dealers like you.
S2 (23:35):
Craig Emily's career in the auto auction industry began in 1993,
when he answered a newspaper ad for a credit collections
manager at the Baltimore Washington Auto Exchange. Initially hesitant, he
was captivated by the fast paced auction environment and quickly
advanced to roles like office manager and fleet lease manager.
Amelung joined Manheim in 2002, eventually overseeing multiple market centers.
(24:00):
His involvement with the National Auto Auction Association, or Nar,
grew through active participation in committees and legislative engagement, eventually
leading to his role on the board as the incoming
president of the Nar. Amelung aims to enhance member participation,
improve administrative practices, and engage in new generation in the industry.
(24:22):
Building on the work of his predecessors to leave the
association better than he found it. Last month, the FTC
filed an administrative complaint against a large dealer group, including
its parent company and three Texas dealerships, for alleged credit
discrimination and unauthorized charges for voluntary protection products. The FTC
(24:46):
claims these dealerships imposed hidden fees on customers, particularly targeting
Black and Latino customers without their express consent. The case
will be reviewed by an administrative law judge with a
hearing set for April 2025. If the FTC finds violations,
it may issue a cease and desist order, which the
dealerships can appeal. This case offers a rare chance for
(25:09):
transparency in FTC procedures, as most similar disputes are settled
out of court. The outcome could have significant implications for
how dealerships handle credit terms and customer consent in future transactions.
Charlotte car dealership owner John Harvey Martin and sales manager
Vincent Emmanuel Jefferson Jr have pleaded guilty to money laundering
(25:31):
conspiracy charges. The scheme involves selling around 20 luxury vehicles
to an individual known as GD, whom the defendants knew
or should have known was a drug dealer. They accepted
over $520,000 in cash from GD using straw purchasers to
hide Gd's identity and the illicit source of funds. Martin
(25:52):
also used funds from these transactions for property renovations and
to buy the Scorpio nightclub, concealing Gd's ownership interest. Both
Martin and Jeferson face up to 20 years in prison
after being released on bond. Thanks for listening to Used
Car News podcast. Each month, we'll bring you fast and
reliable news that car dealers can rely on for this
(26:14):
evolving industry. For a free subscription of Used Car News,
please go to Used Car news.com. This podcast is a
production of BG Group. Make sure to share us on
social media and like and follow wherever you get your podcasts.
S1 (26:27):
Competition is fierce in the used car arena, so how
can you ensure that your pre-owned inventory stands above the rest?
Success starts with the quality of your leads. AutoTrader for
independence offers products that help drive high quality leads for
independent dealers like you.
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