Generational differences are changing how dealers market and sell vehicles. Experian has published new research on these generational buying habits. Kirsten Von Busch, Experian’s director of automotive product marketing, discusses the findings in the latest episode of CBT Now.
Key Takeaways
1. The report from Experian reveals that CUVs (Crossover Utility Vehicles) have become the top choice for car buyers across all generations. In fact, over 50% of new retail registrations in the past year were for CUVs. Gen X buyers led the way, with 31.6% of all registrations in this category.
2. One of the most significant trends highlighted in the report is the generational divide in EV adoption. While EV registrations have generally risen in recent years, the data shows that growth has leveled off for Gen X and Boomers. However, Millennials and Gen Z are driving continued growth in this segment, with EV registrations still climbing for these younger consumers.
3. The report provides a detailed look at the top vehicle models by generation, offering insights into how age impacts automotive preferences. Gen Z buyers are leaning toward smaller, more affordable vehicles like the Honda Civic, while Millennials are increasingly moving toward larger, family-oriented models like the Toyota RAV4. Gen X, known for preferring practical and rugged vehicles, ranks the Ford F-150 as their top choice, followed by the Chevy Silverado. Meanwhile, Boomers continue to favor the comfort and reliability of the Honda CRV. These preferences reflect the shifting lifestyle needs of each generation, from early-career independence to retirement.
4. With Millennials and Gen Z leading the charge in EV and CUV registrations, the report emphasizes the importance of tailoring marketing efforts to these younger age groups. Their increasing engagement with sustainable technology and vehicle functionality highlights an opportunity for dealers to focus on messaging that speaks to these consumers’ values and needs. As EVs continue to face challenges in older demographics, focusing on the younger market could unlock significant growth potential for both CUV and EV sales in the coming years.
5. The report also stresses the importance of using data to create more personalized marketing campaigns. As dealerships are no longer in an era where vehicles sell themselves, understanding generational differences in buying behavior is critical for success. By leveraging insights from Experian’s research, dealers can craft targeted campaigns that resonate with each generation’s unique preferences, promoting fuel-efficient CUVs to Gen X or EV options to younger buyers. Dealers investing in data-driven strategies will likely see better returns on their marketing dollars and more effective customer engagement.
"Millennials and Gen Z continue to increase in EV registrations, while Gen X and Boomers have plateaued or declined, highlighting the need to focus marketing efforts on younger generations for future EV growth." – Kirsten Von Busch.
