Table of Contents
Executive Summary
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- The issues
- Black car buyers conscious of their image
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- Figure 1: Impact of others’ opinions on Blacks regarding car buying, by gender and age, April 2016
- Many brands struggle to develop loyalty
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- Figure 2: Blacks’ buying reference – Brand decided versus open, by age and household income, April 2016
- Blacks have greater appreciation for foreign cars over domestic
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- Figure 3: Attitudes toward automobiles – Foreign versus domestic, Black versus all, October 2014-December 2015
- The opportunities
- Black consumers buying on their own and finding the process that works for them
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- Figure 4: Black car buyers’ responsibility for purchase, by gender, April 2016
- Opportunity for car dealers to improve trust and stand out
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- Figure 5: Blacks’ attitudes toward car dealerships, April 2016
- Blacks like to buy cars every two or three years
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- Figure 6: Attitudes toward automobiles – Black versus all, October 2014-December 2015
- What it means
The Market – What You Need to Know
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- Six in 10 Blacks planning a car purchase in the next three years
- Black car buyers conscious of their image
- Opportunity to attract Black consumers in luxury segment
- Steady economic growth points to consumer spending on cars
- Blacks’ unemployment down near prerecession level
Car Purchasing Prospects
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- Six in 10 Blacks planning a car purchase in the next three years
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- Figure 7: Vehicle purchase intent, by Black versus all, December 2015 and April 2016
- Younger Black men are near-term buyers
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- Figure 8: Blacks’ vehicle purchase intent, by gender and age and parent status, April 2016
- Eagerness to buy increases with income
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- Figure 9: Blacks’ vehicle purchase intent, by household income, April 2016
- Car buying is an individual decision for many Black consumers
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- Figure 10: Black car buyers’ responsibility for purchase, by gender, April 2016
- Young Blacks buying cars on their own
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- Figure 11: Black car buyers’ responsibility for purchase, by age, April 2016
Market Perspective
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- Black car buyers conscious of their image
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- Figure 12: Impact of others’ opinions on Blacks regarding car buying, by gender and age, April 2016
- Opportunity to attract Black consumers in luxury segment
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- Figure 13: Attitudes toward automobiles – Black versus all, October 2014-December 2015
Market Factors
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- Vehicle age at record high suggesting future opportunity
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- Figure 14: Average age of passenger cars and light trucks, 1995-2015
- Auto sales bubble potentially ready to burst?
- Ongoing economic strength bodes well consumer spending on cars
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- Figure 15: Disposable personal income change from previous period, January 2007-March 2016
- Blacks make gains in employment
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- Figure 16: Black labor force participation and unemployment rate, January 2007-April 2016
- Falling gas prices alter car buying demands
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- Figure 17: US gasoline and diesel retail prices, January 2007-April 2016
Key Players – What You Need to Know
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- Toyota leads way in advertising to Blacks
- Lincoln lands product placement in popular hit Empire
- Luxury brands struggle to develop loyalty
- Consumers may soon be buying cars online
What’s Working?
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- Toyota leads way in advertising to Blacks
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- Figure 18: Toyota, “Styling Lesson,” presented by Toyota Rav4 Hybrid, television ad, 2016
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- Figure 19: Toyota, “Away Game with Michael Smith: Trapeze,” presented by Toyota Corolla, YouTube video, 2015
- Toyota-brand Lexus takes similar approach
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- Figure 20: “Lexus RX and Vernon Davis in The Ultimate Crossover: Redefined Dining” video, February 2016
- Lincoln lands product placement in popular hit Empire
- Past Chrysler campaign demonstrates sharp focus on Black community
What’s Struggling?
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- Luxury brands struggle to develop loyalty
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- Figure 21: Blacks’ buying reference – Brand/model decided versus open, by household income, April 2016
What’s Next?
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- Consumers may soon be buying cars online
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- Figure 22: Scion online ad, 2013
The Consumer – What You Need to Know
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- Black consumers far more likely than the average to own just one vehicle
- Younger Blacks open to any brand or model
- Black women seeking word of mouth referrals
- Blacks researching multiple factors online
- 18-44-year-old Black men seeking video reviews online
- Opportunity for car dealers to improve trust and stand out
- Black consumers choose vehicles with eye toward future
Number and Type of Vehicles Owned by Household
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- Most Blacks own a vehicle
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- Figure 23: Vehicle ownership, by race/Hispanic origin, October 2014-December 2015
- Black consumers far more likely to own just one vehicle
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- Figure 24: Number of vehicles owned/leased by household, Black versus all – Index to all, October 2014-December 2015
- Majority of Blacks own conventional cars
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- Figure 25: Type of vehicle Black households own, by domestic and foreign types, October 2014-December 2015
Plans for Purchase
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- Black consumers, especially those aged 45-54, would rather buy new
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- Figure 26: Blacks’ buying preference – New versus used, by age, April 2016
- Blacks planning to buy used may be disappointed
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- Figure 27: Type of vehicle planning to purchase – New or used, Black versus all, October 2014-December 2015
- Younger Blacks open to any brand or model
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- Figure 28: Blacks’ buying reference – Brand/model decided versus open, by age, April 2016
- Blacks less likely than whites to buy SUV, trucks, or vans
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- Figure 29: Type of vehicle planning to purchase – Type, Black versus all, October 2014-December 2015
- Many Blacks unsure of whether to buy domestic or foreign
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- Figure 30: Type of vehicle planning to purchase – Domestic or foreign, Black versus all, October 2014-December 2015
- Some allure to foreign cars among Black car buyers
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- Figure 31: Buick Wedding Commercial starring the all-new Buick Cascada luxury convertible, March 2016
- Figure 32: Attitudes toward automobiles – Foreign versus domestic, Black versus all, October 2014-December 2015
Research Resources
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- In-person experience is key to purchasing process
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- Figure 33: Blacks’ vehicle purchase research plans, April 2016
- Black men more likely to read car news and reviews
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- Figure 34: Blacks’ vehicle purchase research plans – Men more likely, by gender, April 2016
- Black women respond to word of mouth
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- Figure 35: Blacks’ vehicle purchase research plans – Women more likely, by gender, April 2016
- Black consumers want to know what goes on under the hood
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- Figure 36: Attitudes toward automobiles – Interest in cars, Black versus all and indexed to all, October 2014-December 2015
- Research methods vary for new versus used buyers
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- Figure 37: Blacks' research resources, by new versus used car most recently purchased, October 2014-December 2015
Plans for Internet Research
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- Blacks researching multiple factors online
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- Figure 38: Blacks’ plans for using internet research, April 2016
- Pricing of more interest to women and older Blacks
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- Figure 39: Blacks’ plans for using internet research – Price research, by gender and age, April 2016
- Younger Black women researching vehicle history
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- Figure 40: Blacks’ plans for using internet research – Other research, by gender and age, April 2016
- 18-44-year-old Black men seeking video reviews online
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- Figure 41: Blacks’ plans for using internet research – Read reviews, by gender and age, April 2016
- Already checking inventory, young Blacks perhaps would buy online
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- Figure 42: Blacks’ plans for using internet research – Dealer, by gender and age, April 2016
Attitudes toward Car Dealerships
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- Opportunity for car dealers to improve trust and stand out
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- Figure 43: Blacks’ attitudes toward car dealerships, April 2016
- Older Black women least trusting of dealers
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- Figure 44: Blacks’ attitudes toward car dealerships – Select items, by gender and age, April 2016
- Young Black men willing to pay extra for better service
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- Figure 45: Blacks’ attitudes toward car dealerships – Select items, by gender and age, April 2016
- More affluent Blacks willing to pay extra for service
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- Figure 46: Blacks’ attitudes toward car dealerships – Select items, by household income, April 2016
Attitudes toward Payments, Price, and Value
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- Black consumers choose vehicles with eye toward future
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- Figure 47: Blacks’ attitudes toward payments, price, value, April 2016
- Financial education provides opportunity to gain trust with young Blacks
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- Figure 48: Blacks’ attitudes toward payments, price, value, by age, April 2016
- Fewer 18-34-year-old Blacks want a loan, but prefer dealers when they do
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- Figure 49: Blacks’ buying reference – Loan versus full payment and financing, by age, April 2016
- For Blacks preferring loans, monthly payment most important
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- Figure 50: Blacks’ attitudes toward payments, by preference for loan versus payment in full, April 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
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