A new survey from CarGurus reveals that the first car buying experience of millennials starkly differs from that of previous generations.
Compared to millennials, baby boomers were not only found to have been more involved when selecting their first car, but were also far more likely to have contributed to the purchase cost, the online automotive shopping platform said.
While only 37 percent of millennials surveyed said they contributed to the cost of their first car, 65 percent of baby boomers told CarGurus they paid for some or all of their first car, according to the survey. And 53 percent of Gen Xers contributed to the cost of their first car.
“Our data shows a clear generational shift in the dynamics of first car purchase,” said Sarah Welch, senior vice president of consumer marketing, said in a news release. “Given the rise of autonomous vehicles, ride sharing and sweeping urbanization, it will be interesting to see if future generations show the same trend in parents controlling the first car purchase or if we’ll see a drop-off in dependents needing a car at a younger age.”
Twenty-three percent of millennials’ first cars were hand-me-downs, while only 10 percent of baby boomers were, according to the survey.
The survey also found that millennials were more likely to receive their first car from a family member, and were just as likely to not have a choice. Thirty-four percent of the millennials surveyed said they were given their first car for either school, a job or extracurricular activity.
Thirty-three percent of millennials did not have a say in their first car, as opposed to 24 percent of baby boomers.
Although the survey shows clear differences in first car buying experiences between generations, it presents a few similarities, as well.
The survey found that 83 percent of all first cars were either bought or given used and 55 percent of drivers got their first car between the ages of 16 and 18.
Additionally, the survey also asked participants to name their favorite car brands. Chevrolet is the only brand to top each generation’s list of favorite brands. The overall most popular brands amongst all the drivers surveyed are Ford, Chevrolet, Toyota, Honda and Dodge, respectively.
The following are lists of the top five brands for each generation.
Baby boomers: Most popular first-car brands
- Ford
- Chevrolet
- Volkswagen
- Plymouth
- Toyota
Generation X: Most popular first-car brands
- Ford
- Chevrolet
- Toyota
- Dodge
- Pontiac
Millennials: Most popular-first car brands
- Chevrolet
- Honda
- Toyota
- Ford
- Nissan
CarGurus said it conducted the online survey of more than 1,800 randomly selected participants last month. Survey participants included drivers who have owned a car, ranging from 18 years of age to 70.
AutoNation president and chief operating officer Bill Berman has resigned, the company said in a news release Monday afternoon.
The resignation was effective Monday, but Berman will continued to be employed by AutoNation in an advisory role through June 30.
AutoNation chairman and chief executive officer Mike Jackson will take on operating responsibilities and the company will start a selection process for its new president and COO.
“I thank Bill for his 20 years of service and leadership at AutoNation. We wish Bill all the best in his future endeavors,” Jackson said in the news release.
Berman, who had been executive vice president and COO, became president and COO on Feb. 1.
In other news from the company, senior vice president Scott Arnold has been promoted to the role of executive vice president of customer care and brand extensions. That includes AutoNation Collision Centers, AutoNation USA Service Now, AutoNation Precision Parts and AutoNation Auto Gear.
Jackson said in the release: “Scott has been with AutoNation for over 15 years, and has served in many retail operation roles. He has been instrumental in developing our brand extensions, and under his leadership, we have seen solid growth in our Customer Care business, as well as growth in our Precision Parts initiative and our AutoNation branded collision centers.”
While quality and affordability are regarded as key decision factors when purchasing a car, America’s growing group of millennial consumers are most likely to consider brands that fit with their personal image instead, according to Cambridge Analytica, a data analytics and behavioral communications provider
“Finding brands which fit their personal image was the largest growing factor amongst millennials when compared to older respondents,” Cambridge Analytica Data Scientist Tom Richardson said via email when Auto Remarketing asked about the study’s findings.
Fitting personal image was found to be the largest differentiating factor between the youngest consumers and older car buyers, he said.
Cambridge Analytica found this and several other trends following its study which examined American car buying habits across key demographics.
About a third of millennials surveyed said fitting personal image was “extremely important,” while only a quarter of all respondents said the same, according to the study.
Last summer, Cambridge Analytica asked 3,018 respondents to consider the following set of factors: fits with personal image, affordability, high quality, driven by celebrities, brand reputation, made in the USA and environmentally friendly.
“When dealing with younger customers we might advise dealers to use a sales pitch based on matching an individual’s style and perhaps offer small personifications/bonus extras with the cars,” Richardson explained.
According to the study, Audi is the most desired brand amongst the millennials surveyed and Lexus and Honda ranked the lowest, which suggests the two brands don’t align with a millennial’s personal image.
Car owners vs. non-owners
The study also found that car ownership status rather than age is the best predictor when identifying shoppers who rate environment as important.
While environmental impact was found to be generally less important than both affordability and quality, 10 percent of respondents without a vehicle said they consider environmental factors extremely important.
Those without a car also consider affordability to be extremely important more often than quality. The group is 10 percent less likely to rate quality as extremely important and about 6.5 percent more likely to rate affordability as extremely important, according to the study.
Similarly, respondents who already own a car told Cambridge Analytica they are mostly interested in vehicles that offer higher quality than what they currently own.
Men vs. Women
High quality and affordability were the most important factors for both men and women.
But while a majority of both genders agree that the two factors are extremely important when choosing a new car, about 10 percent more women than men believe affordability, in particular, is extremely important.
Additionally, men are almost two times more likely than women to select BMW as their most desired brand, according to the study.
Other luxury brands such as Mercedes and Lexus were also found to be favorite brands for men.
Women were found to desire Japanese economy brands like Honda and Toyota most, while they significantly favor the Jeep brand more than men. Meanwhile, 7.6 percent of the women surveyed chose the American brand as their favorite compared to just 4.5 percent of men.
Interestingly, Audi was equally as popular with both genders: 7.8 percent of men chose the brand and so did 7.8 percent of women, according to the study.
Cambridge Analytica’s study was conducted online in June 2016, “when most people began talking about 2017 car models,” Richardson added.
Sheehy Auto Stores has launched its 20th annual Sheehy 8000 sales event, a three-week community-wide effort to raise funds for the American Heart Association, the group announced on Friday.
Throughout the rest of the month, each of Sheehy Auto's dealerships throughout Washington, D.C.; Richmond, Va.; and Baltimore will host a variety of initiatives in support of the fundraiser before it wraps up on July 5.
"This year is a milestone for us as we continue our mission to raise awareness and funds for a cause that is close to many of our hearts," Sheehy Auto president Vince Sheehy said in a news release.
"We are thankful for our customers, communities and team members who rally behind this effort, making each year's campaign more successful than the last."
Sheehy Auto said this year’s campaign includes healthy cooking demonstrations, blood pressure screenings and CPR training for employees and the community across all of its locations.
"The support of Sheehy Auto Stores has allowed us to make a considerable impact on the health of our communities in the region," American Heart Association vice president of marketing Michelle Nostheide said. "We appreciate the generosity of their team members, customers and vendors, and their efforts towards workplace wellness. Together, we can lessen the burden and loss heart disease and stroke cause for so many families."
Last year's Sheehy 7000 campaign raised $225,000 for the American Heart Association, according to Sheehy.
Additionally, the dealer group said it has been a several year sponsor of the charity’s National Walking Day, which was held last month at Springfield Town Center in Virginia. Each of Sheehy's dealerships also hosted individual step challenges among employees on the day of the walk.
Sheehy Auto said it has raised a total of more than $40 million for community and non-profit organizations since it was founded in 1966.
The National Automobile Dealer Association recently highlighted a new resource for members is now available: “A Dealer Guide to the FTC Used Car Rule.” Members can secure it through NADA University Online.
Association officials explained the material provides an overview of the revised Used Car Rule from the Federal Trade Commission, including details about the revised Buyers Guide, instructions on properly completing the Buyers Guide form, and with a number of templates and other examples.
The FTC finalized amendments to the Used Car Rule last November, noting seven specific modifications.
The guide is available to NADA and ATD members only at no charge by going through this website. Members needing assistance in accessing the guide should call NADA customer service at (800) 557-6232.
dealerIQ announced that it has released its online trade appraisal platform tradeIQ, which is designed to produce increased user engagement on dealer's websites.
The auto dealer software provider said by maximizing user engagement via the newly introduced platform, dealers can expect less abandonment and higher conversion, which leads to more website visitors into the store.
"The online trade valuation software industry has for years refused to evolve to keep up-to-date with current web engagement standards," dealerIQ co-founder Aaron Haimovitz said in a news release. "As a result, car dealers have had no alternative but to use dated technology on their website, driving high abandonment of the visitors they so dearly pay for."
dealerIQ said tradeIQ maximizes the conversion of website visitors to leads by offering a modern interface that also retains each dealer's unique brand.
"Existing trade solutions require visitors to complete lengthy forms resulting in high website abandonment. tradeIQ was designed from the ground up to disrupt the trade appraisal landscape," dealerIQ said.
Through an easy-to-use wizard, the new platform presents visitors with engaging information such as service recall information, estimated credit score and vehicle affordability.
Additionally, dealerIQ said tradeIQ can be easily embedded into a dealer's existing website and designed to integrate smoothly with the brand of a dealer that consumers have come to know.
"Dealers have been held ransom and have come to expect high website abandonment," Haimovitz added. "tradeIQ aims to change the way trade appraisal solutions should work for both dealers and potential customers."
The National Independent Automobile Dealers Association added two new relationships with service providers aimed at helping operators turn more metal and generate profit.
NIADA announced ddk marketing has joined with the association as its newest National Affinity Partner, offering NIADA members a free 90-day trial of its autogenius app.
Also, Security Key Systems (SKS) now is a National Member Benefit partner, giving association members availability to a key tracking suite with a wide range of configuration options and features to help them avoid losing sales due to being unable to find keys quickly.
NIADA explained ddk autogenius is a Web-based mobile app that is designed to increase a dealer's odds of saying just the right thing to keep each customer engaged throughout the selling process.
Once a simple five-question customer survey is completed, the firm indicated the research intelligence behind autogenius analyzes the answers to identify the customer. For each of the three key customer categories, the app then can direct the salesperson on what to say — and not say — to that particular customer to lead to more closes and happier customers.
“The sales associates don't have the time to learn a lot of new tools or complex procedures,” said Luke Heffron, senior vice president of ddk's Genius Group. "Everything about our autogenius app was designed with that in mind.
“The training is built in and created using the latest research on e-learning facilitation,” Heffron continued. “We’ve threaded a gamification tool throughout the app to keep sales associates engaged, learning and excited about the app.”
Heffron also mentioned autogenius works on all WiFi-enabled devices, including tablets, kiosks and touchscreen monitors. And ddk marketing will provide NIADA members with a free, full-license 90-day trial.
“The ddk autogenius partnership delivers to our membership an easy-to-implement, highly effective, inexpensive sales process enhancement resource that delivers increased closing ratios, corresponding sales and customer satisfaction,” NIADA senior vice president of member services Scott Lilja said.
“Instead of spending thousands of dollars on time-consuming and complex sales training programs, this unique sales tool brings immediate results within a convenient, easy-to-use app,” Lilja went on to say.
For more information, call (312) 638-3478, email findoutmore@ddkautogenius.com or visit www.ddkautogenius.com.
Security Key Systems teams with NIADA
SKS has helped dealerships with key management issues for more than 20 years thanks to founder and chief executive officer Steve Singleton, who has more than 40 years of experience in managing the demands dealerships face.
“We view this as a great opportunity to help dealerships increase their sales and eliminate down time,” SKS chief operating officer Cheryl Ryan said.
“With society's increasing conveniences, customers want to be able to take test drives as soon as they enter a dealership and are not interested in waiting around while an employee tracks down a key to their desired vehicle. Our key management solutions will help dealers offer the increased speed customers are looking for to get in their new car,” Ryan continued.
NIADA highlighted that SKS combines first-class service, strong support and a selection of key systems that do more than just store keys, allowing independent dealers to connect customers with their desired car as quickly as possible to help increase sales.
SKS’ KeyWatcher Touch system uses technology such as touch screen key selection and fingerprint logins to track keys, monitor users and run usage reports to eliminate wasted time locating keys and make sure customers can take the test drives they desire.
“Security Key Systems is a leader in the auto dealership key management/security market,” Lilja said. “With vehicle key technology becoming more complex by the day, it is critical that our member dealers have the appropriate resources available to ensure the security of, ease of location and tracking of those critical customer assets.”
Lilja added SKS is offering NIADA members unique discounts on its services, “which provides substantial value in being an NIADA member.”
For more information or a live demo, contact Ryan at (941) 474-5640 or visit www.securitykeysystems.com.
Reynolds and Reynolds in the U.K. announced that it has expanded its suite of retailing tools for dealers.
"The customer-dealer relationship continues to change," Reynolds U.K. Automotive managing director Adele Feeney said in a news release. "Over the past several years, we have expanded our suite of retailing tools for dealers. These tools are helping dealers improve operating performance and provide a more engaging and efficient customer experience."
Most notable among the company’s latest set of solution additions is its new Contact Advantage tool.
Contact Advantage provides dealerships and OEMs with a comprehensive tool that manages complete sales cycles and allows them "to take their customers through the entire sales process – from model selection, color and specification configuration, pricing and order forms – all in one, simple-to-use, interactive process," Reynolds U.K. said.
According to Feeney, the new tool is available to all dealers, whether or not they use the Reynolds dealership management system.
"We believe Contact Advantage is the premier showroom CRM solution for keeping track of dealership leads and maximizing sales potential," Feeney added.
Other new retailing tools Reynolds U.K. has also recently introduced include Aptus Websites, Reynolds Integrated Telephone System (RITS) and iMakeNews.
Aptus Websites, a DMS-neutral website platform, allows dealers to connect with consumers at any time and on any device.
RITS, a dealership-wide, customer experience management system combines phone features with dealer's instant customer data from the DMS in order to create more effective phone conversations with consumers, according to Reynolds U.K.
iMakeNews is a digital newsletter that is designed to build customer loyalty and retail action via engaging content. The new tool also delivers unique ROI metrics which aim to help dealers understand consumers’ current buying decisions so they can influence their buying decisions in the future.
"For dealers, customer service has never been as important as it is now," Feeney said. "The customer now initially goes to a dealer's website before walking into the showroom armed with information and knowing what the competition is offering. Therefore, managing the entire sales process to create a rewarding customer experience at every touch point inside and outside the four walls of the dealership is becoming a necessity, not a luxury."
For more information about each of the retailing tools now offered by Reynolds U.K., visit www.reyrey.co.uk/DMS.
Dealership sales lead provider Autobytel generated record revenue during the first quarter, which the company said was primarily driven by the continued strong growth of advertising click revenues.
For the quarter that wrapped up March 31, Autobytel reported an 8-percent year-over-year increase in revenue to $37.3 million. That advertising click revenue spiked a whopping 152 percent, according to the company.
As a result, Autobytel indicated the company posted a net income figure of $0.5 million or $0.04 per diluted share during Q1. A year earlier, the company sustained a net loss of $0.7 million or $0.07 per share.
“The momentum from our record 2016 has carried into the first quarter,” Autobytel president and chief executive officer Jeff Coats said. “Our results were highlighted by another quarter of triple-digit growth in our clicks business, which is becoming a meaningful contributor to our overall financial performance.
“As expected, our lead revenues were down due to the effect of last year’s initiative to systematically reduce lower-quality leads supply,” Coats continued.
As of March 31, the company noted its cash and cash equivalents totaled $39.6 million compared to $38.5 million as of Dec. 31. Autobytel said its total debt was reduced to $20.4 million compared to $23.1 million at the end of last year.
Autobytel continues to expect 2017 revenue to range between $156.0 million and $160.0 million, representing an increase of approximately 4 percent to 7 percent from 2016.
“Looking ahead, we expect to continue reinvesting in our business to drive sustainable, long-term organic growth and further solidify Autobytel’s position as a leader in the digital automotive marketplace,” Coats said. “We also expect to continue to enhance our internal lead generation capabilities and invest in new traffic sources to maximize the growth potential of our clicks and used car businesses.
“In fact, we expect our used car business to make significant headway this year as we seek to position our revamped usedcars.com site to become the premier used vehicle destination for consumers,” he continued. “But most importantly, in 2017 we will remain committed to providing our dealer and OEM customers with high-quality, high-intent car buyers.”
Stream Companies, an integrated traditional and digital marketing agency in Tier 3 automotive, recently acquired WorldDealer, another integrated advertising agency and automotive website company.
With the acquisition, Stream explained that it adds a number of key agency accounts and more than 100 websites to FullThrottle, its performance website platform specifically made for dealers. Paul Accinno, founder of WorldDealer, will assume the role of executive vice president of dealer development and continue to work alongside clients helping them grow their business through integrated marketing and advertising.
“We knew right off the bat that this partnership would work based off of our similar visions and goals to bring an integrated advertising approach to dealerships across the nation,” Accinno said.
Stream co-founder David Regn emphasized the firm is looking to set itself apart from other agencies with its results-driven philosophy to generate and retain auto dealers to increase sales and profitability. Now with the WorldDealer team on board, Regn explained these thought leaders will continue to exceed their clients’ expectations on a larger scale.
“We are very excited to add the WorldDealer team and all their clients to the Stream Companies umbrella,” Regn said.
WorldDealer will continue to operate out of the Pittsburgh office with plans to expand its footprint in the Midwest, according to a news release.
