Table of Contents
Scope and Themes
-
- What you need to know
- Definition
- Data sources
- Consumer survey data
- Abbreviations and terms
- Terms
- A note on acculturation
Executive Summary
-
- Hispanic households buy a car as soon as they can afford it
-
- Figure 1: Household car ownership, by household income and Hispanic origin, November 2013-December 2014
- Majority of Hispanics gravitate toward conventional cars, but over index on other categories
-
- Figure 2: Type of vehicle household most recently acquired, by Hispanic origin, November 2013-December 2014
- Likelihood to buy cars that are new increases with acculturation
-
- Figure 3: Condition (new, used, or leased) of vehicle household most recently acquired, by language spoken at home and Hispanic origin, November 2013-December 2014
- Younger Hispanics more enthusiastic about buying a car, but may face scrutiny
-
- Figure 4: Hispanics' expected car-buying timing, by gender and age, March 2015
- Dealers are the best source of information
-
- Figure 5: Sources of information that Hispanics use for researching about cars, March 2015
- Domestic vehicles lack positioning among Hispanics
-
- Figure 6: Correspondence Analysis – Hispanics’ attitudes toward vehicles, March 2015
- Fuel economy is important to Hispanics
-
- Figure 7: Important factors for Hispanics when buying a vehicle, March 2015
- What we think
Issues and Insights
-
- Domestic brands lack positioning and are bought mostly used
- The issues
- The implications
- Hispanics are pragmatic in their approach to car buying
- The issues
- The implications
- Dealers are the best source of information; power should be used wisely
- The issues
- The implications
Trend Application
-
- Trend: Experience is All
- Trend: Prove It
- Trend: Never Say Die
Market Factors
-
- Key points
- Hispanics’ purchasing power projected to reach $1.7 trillion by 2019
-
- Figure 8: Purchasing power, by race/Hispanic origin, 1990-2019
- Improving labor market for Hispanics has a positive impact on their confidence
-
- Figure 9: Hispanic labor force participation and unemployment rate, January 2007-April 2015
- Hispanic market becoming bicultural
- Cars are staple items
Key Players
-
- Key points
- Five brands dominate the car market among Hispanics
-
- Figure 10: Brand and condition (new, used, or leased) of vehicle Hispanic household most recently acquired, November 2013-December 2014
- Japanese brands have well-defined mission statements
- Car dealers are another key player
Overview of Hispanics’ Car Ownership
-
- Key points
- Hispanic households buy a car as soon as they can afford it
-
- Figure 11: Household car ownership, by household income and Hispanic origin, November 2013-December 2014
- Northeast Hispanic households least likely to own a car
-
- Figure 12: Household car ownership, by region and Hispanic origin, November 2013-December 2014
- Higher household income allows Hispanics to afford more cars
-
- Figure 13: Number of cars owned per household, by household income and Hispanic origin, November 2013-December 2014
Hispanics’ Last Car Purchase
-
- Key points
- Majority of Hispanics gravitate toward conventional vehicles, but over index on other categories
-
- Figure 14: Type of vehicle household most recently acquired, by Hispanic origin, November 2013-December 2014
- Likelihood to buy cars that are new increases with acculturation
-
- Figure 15: Condition (new, used, or leased) of vehicle household most recently acquired, by language spoken at home and Hispanic origin, November 2013-December 2014
- Purchases evenly split between domestic and foreign brands
-
- Figure 16: Make and origin (domestic or imported) of vehicle Hispanic household most recently acquired, November 2013-December 2014
- Foreign brands more likely than domestic brands to be bought new
-
- Figure 17: Toyota Service Centers, Electrician commercial, May 2015
- Figure 18: Brand and condition (new, used, or leased) of vehicle Hispanic household most recently acquired, November 2013-December 2014
Hispanics’ Next Car Purchase
-
- Key points
- Younger Hispanic enthusiasts may face scrutiny
-
- Figure 19: Hispanics’ expected car-buying timing, by gender and age, March 2015
- Hispanics have many reasons to buy a car
-
- Figure 20: Hispanics’ reasons for car buying, by level of acculturation, March 2015
- Chrysler highlights new features of the 2015 Chrysler 200
-
- Figure 21: Chrysler 200 "Psychic" TV ad, March 2015
- Dealers are the best source of information
-
- Figure 22: Sources of information that Hispanics use for researching about cars, March 2015
- Bringing a piece of the success in Mexico
Vehicle Types Hispanics Consider
-
- Key points
- Hispanics over index on compact vehicles and minivans
-
- Figure 23: Hispanics’ vehicle types consideration, March 2015
- Brands stress convenience and style offered by their compact vehicles
- Toyota talks about style
-
- Figure 24: Design TV ad, Toyota Corolla 2015, Car logos, April 2015
- Honda highlights the versatility of Honda Fit for Millennials
-
- Figure 25: Honda, “#UnBuenFit - Discover the All-New 2015 Honda Fit with Felipe Esparza (English),” June 2014
Hispanics’ Car Perceptions
-
- Key points
- Correspondence analysis
- Methodology
- Domestic vehicles lack positioning among Hispanics
-
- Figure 26: Correspondence Analysis – Hispanics’ attitudes toward vehicles, March 2015
- An example of how domestic brands are not top-of-mind for most attributes
-
- Figure 27: Chevrolet Films, Car logos, March 2015
Hispanics’ Attitudes toward Car Dealerships
-
- Key points
- Perception of car dealerships puts Hispanics on the defensive
-
- Figure 28: Hispanics’ attitudes toward car dealers – Any agree, by level of acculturation, March 2015
- Spanish is a must to build rapport with less-acculturated Hispanics
-
- Figure 29: Hispanics’ attitudes toward importance of Spanish-language at car dealers – Any agree, by level of acculturation, March 2015
- For Hispanics, car dealerships can be misleading
-
- Figure 30: Hispanics’ attitudes toward dealers and trust – Any agree, March 2015
- Reluctance to trust car dealers increases with acculturation
-
- Figure 31: Hispanics’ attitudes toward dealers and trust – Any agree, by level of acculturation, March 2015
- Good reputation gives peace of mind
-
- Figure 32: Hispanics’ attitudes toward dealers and value – Any agree, by level of acculturation, March 2015
The Hispanic Car Buyer’s Mind-set
-
- Key points
- More-affluent Hispanics more excited when buying a car
-
- Figure 33: Hispanics’ excitement when buying a vehicle, by household income, March 2015
- Unacculturated Hispanics more likely to consider new better than used
-
- Figure 34: Hispanics’ knowledge of what they want when buying a vehicle, by level of acculturation, March 2015
- Negotiating the price becomes more unpleasant as household income increases
-
- Figure 35: Hispanics’ approach toward negotiating when buying a vehicle, by household income, March 2015
Important Factors for Hispanics when Buying Cars
-
- Key points
- Fuel economy is important for Hispanics
-
- Figure 36: Important factors for Hispanics when buying a vehicle, March 2015
- Older Hispanics are more price-conscious
-
- Figure 37: Importance of cost factors for Hispanics when buying a vehicle, by gender and age, March 2015
- Comfort and vehicle type trump looks and engine power
-
- Figure 38: Importance of design factors for Hispanics when buying a vehicle, by level of acculturation, March 2015
- Younger Hispanic men not as fixated on safety as others
-
- Figure 39: Importance of trust factors for Hispanics when buying a vehicle, by gender and age, March 2015
Appendix – Buying Power of US Hispanics
-
- Key points
- Hispanics’ purchasing power growth between 1990 and 2019 is projected to be 687%
-
- Figure 40: Purchasing power, by race/Hispanic origin, 1990-2019
-
- Figure 41: Top 10 states ranked by share of Hispanic buying power, rank by Hispanic share of buying power by state, 2014
- Figure 42: Top 10 states ranked by dollar amount of Hispanic buying power, 2014
- US household income distribution
-
- Figure 43: Median household income, by race and Hispanic origin of householder, 2013
Appendix – Demographic Profile of US Hispanics
-
- Key points
- Population trends
-
- Figure 44: Population, by race and Hispanic origin, 2010-20
- Hispanic share of births
-
- Figure 45: Distribution of births, by race and Hispanic origin of mother, 2002-12
- The Hispanic and total US population by age
-
- Figure 46: Hispanic share of the population, by age, 2010-20
- Figure 47: US share of the population, by age, 2010-20
- Characteristics
- Marital status
-
- Figure 48: Marital status of people aged 18 or older, by race and Hispanic origin, 2013
-
- Figure 49: Marital status of Hispanics, by age, 2013
- Figure 50: Gender ratio, by age and Hispanic origin, 2014
- Generations
-
- Figure 51: Generations, by Hispanic origin, 2015
- Figure 52: Distribution of generations by race and Hispanic origin, 2015
- Hispanics live in larger households
-
- Figure 53: Average household size and average number of adults and children in households, by race and Hispanic origin, 2014
- Hispanics by country of origin/heritage
-
- Figure 54: Hispanic population, by country of origin/heritage
- Mexicans (63% of US Hispanics)
-
- Figure 55: Number of tortilla-related products launched per year in the US, 1996-2013
- Puerto Ricans (9% of US Hispanics)
- Cubans (4% of US Hispanics)
- Dominicans (3% of US Hispanics)
- Central Americans (8% of US Hispanics)
- South Americans (5% of US Hispanics)
-
- Figure 56: US Hispanic population, by country of origin/heritage, 2000-10
-
- Figure 57: Largest* Hispanic groups, by region, by country of origin/ancestry, 2010
- Hispanics by geographic concentration
-
- Figure 58: Hispanic population, by region of residence, 2000-10
- Figure 59: Hispanic or Latino population as a percentage of total population by county, 2010
- States with the most Hispanic population growth
-
- Figure 60: States ranked by change in Hispanic population, 2000-10
- Figure 61: Percentage change in Hispanic or Latino population by county, 2000-10
- Key Hispanic metropolitan areas
-
- Figure 62: Metropolitan areas with the largest number of Hispanic residents, by country of origin/ancestry, 2010
Appendix – Acculturation
-
- What is acculturation?
-
- Figure 63: Acculturation diagram
-
- Figure 64: Variables that affect acculturation
- Why is level of acculturation important?
- Levels of acculturation
-
- Figure 65: Characteristics of primary acculturation levels
- What is retroacculturation?
Appendix – Other Useful Tables
-
-
- Figure 66: Hispanics’ household car ownership, by language spoken at home, November 2013-December 2014
- Figure 67: Type of vehicle Hispanic household most recently acquired, by household income, November 2013-December 2014
-
- Figure 68: Type of vehicle Hispanic household most recently acquired, by language spoken at home, November 2013-December 2014
- Figure 69: Make and origin (domestic or imported) of vehicle Hispanic household most recently acquired, by household income, November 2013-December 2014
-
- Figure 70: Make and origin (domestic or imported) of vehicle Hispanic household most recently acquired, by language spoken at home, November 2013-December 2014
- Figure 71: Hispanics’ attitudes toward vehicles, March 2015
-
Appendix – Trade Associations
-
- Asociación Mexicana de Distribuidores de Automotores (AMDA)
- Best Selling Cars Blog
- Center for Automotive Research (CAR)
- Association of Hispanic Advertising Agencies (AHAA)
- National Association of Hispanic Publications (NAHP)/National Hispanic Press Foundation
- National Automobile Dealers Association (NADA)
- United States Hispanic Chamber of Commerce (USHCC)
Back to top