Recent studies of car buying trends of Gen Y members, considered to be people aged approximately 18-35, have uncovered some general personality traits along with some preferences when shopping for cars. Gen Y members, who make up approximately one quarter of the population, in general, tend to be frank and opinionated, conscientious, and are likely to know what they want and are willing to shop around for it. So what are they currently looking for when shopping for a new car?
A recent article on http://chicagotribune.com cited a study that shows most Gen Y members who own cars are presently drawn towards vehicles with alternative fuel systems (Hybrids). Only 2% favored pure battery electric vehicles. Customer service is important to them, they tend to want to personalize their vehicles, and they are willing to pay for the options and technology they want in their vehicle.
Another trend of Gen Y members, according to research done by TD Auto Finance, is to secure direct loans rather than negotiate loans at the dealership, with the majority of loan applications being done on the Internet. What does this mean to you? Most likely, it will lead to a decrease in finance reserves from this demographic and, if this trend gets more popular, it might lead to flat fees. Flat fees from lenders would almost certainly be less than what would be earned through finance reserves. I’ll discuss flat fees more in my next blog.