Table of Contents
Executive Summary
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- The issues
- Hispanics show higher purchase intent
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- Figure 1: Vehicle purchase intent, by Hispanic origin, December 2015 and March 2016
- Hispanics’ budget for vehicles strongly correlated to household income
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- Figure 2: Median amount Hispanics paid for last vehicle purchased, by household income, October 2014-December 2015
- Most Hispanics do their research online, then test live
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- Figure 3: Hispanics’ vehicle purchase research plans – Select items, by level of acculturation, March 2016
- The opportunities
- Understanding differences in how Hispanics research online
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- Figure 4: Hispanics’ plans for using internet research, by gender and age, March 2016
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- Figure 5: Hispanics’ plans for using internet research – Select items, by level of acculturation, April 2016
- Aiming for differentiation
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- Figure 6: Hispanics’ attitudes toward car dealerships – Any agree for select items, March 2016
- Helping Hispanics understand car loans
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- Figure 7: Hispanics’ attitudes toward payments, price, value – Any agree for select items, April 2016
- What it means
The Market – What You Need to Know
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- Hispanics show greater purchase intent
- Hispanic men drive enthusiasm, but…
- Hispanics are practical when buying cars
- Some market factors cause optimism, but also highlight challenges
Car Purchasing Prospects
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- Hispanics more likely to want to buy sooner
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- Figure 8: Vehicle purchase intent, by Hispanic origin, December 2015 and March 2016
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- Figure 9: Car buyers’ responsibility for purchase, by Hispanic origin, March 2016
- Hispanic men drive purchase intent
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- Figure 10: Hispanics’ vehicle purchase intent, by gender and age, March 2016
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- Figure 11: Hispanic car buyers’ responsibility for purchase, by gender and age, March 2016
- Higher-household incomes enable Hispanics to consider new cars
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- Figure 12: Hispanics’ vehicle purchase intent, by household income, March 2016
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- Figure 13: Hispanic car buyers’ responsibility for purchase, by household income, March 2016
Market Perspective
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- Hispanics are pragmatic buyers
- Cars don’t necessarily have to be fun to drive
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- Figure 14: Attitudes toward automobiles – Cars fun to drive – Any agree, Hispanics vs All, by household income, October 2014-December 2015
- Options don’t necessarily add value
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- Figure 15: Attitudes toward automobiles – Options impress – Any agree, Hispanics vs All, language spoken at home, October 2014-December 2015
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- Figure 16: Features in most recent acquired vehicle, Hispanics indexed to All, October 2014-December 2015
- Cars are seen as tools
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- Figure 17: Attitudes toward automobiles – Use of personal vehicle at work – Any agree, Hispanics vs All by, language spoken at home, October 2014-December 2015
Market Factors
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- Low unemployment can give Hispanics confidence to spend
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- Figure 18: Hispanic unemployment (seasonally adjusted), January 2007-April 2016
- Hispanics more restricted financially
- Median household income for Hispanics significantly below national median
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- Figure 19: Median household income, by race and Hispanic origin of householder, 2014
- More than half of Hispanic households bring home less than $50K
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- Figure 20: Household income distribution by race and Hispanic origin of householder, 2014
- Average age of cars in the US at all-time high
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- Figure 21: Average age of passenger cars and light trucks, 1995-2014
Marketing Approach – What You Need to Know
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- Some of the things that are working
- Offers and features
- Combined efforts
- Some of the things to keep an eye on
- Fixed prices should be handled with care
- Some of the things affecting the industry moving forward
- Quality service
- Vehicle recalls
What’s Working?
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- Highlighting offers and features
- Achieving differentiation through synergy
What Needs to be Handled with Care?
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- Fixed or “no-haggle” prices
What’s Next?
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- Focus on quality service
- Vehicle recalls
The Consumer – What You Need to Know
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- Household income a key factor in purchasing vehicles
- New versus used expectations are determined by what’s in their wallets
- Plans for used cars demands more flexibility
- Most homework is done online, but test-drives are decisive
- Different groups focus their online searches differently
- At the dealership
- First impressions matter
- Price negotiation is expected
- Longer loan durations okay to lower monthly payments
Vehicle Ownership
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- Hispanics buy vehicles as soon as they can afford one
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- Figure 22: Vehicle ownership, by Hispanic origin and household income, October 2014-December 2015
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- Figure 23: Number of vehicles owned/leased by Hispanic households, by household income, October 2014-December 2015
- Hispanics equally likely to own domestic and import vehicles
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- Figure 24: Type(s) of vehicle(s) Hispanic households own, indexed to all, October 2014-December 2015
- Hispanics tend to spend less than the average US consumer per vehicle
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- Figure 25: Amount paid for last vehicle purchased, Hispanics vs All, October 2014-December 2015
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- Figure 26: Amount Hispanics paid for last vehicle purchased, by household income, October 2014-December 2015
Purchase Plans – New versus Used
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- Hispanics split on whether they want to buy new or used
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- Figure 27: Type of vehicle Hispanics plan to purchase – New or used, by gender and age, October 2014-December 2015
- Higher household incomes empower Hispanics to look for new cars
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- Figure 28: Type of vehicle Hispanics plan to purchase – New or used, by household income, October 2014-December 2015
Purchase Plans – Knowing What They Want versus Flexibility
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- Hispanics are open to exploring brands and models
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- Figure 29: Hispanics’ buying preference of brand and model – New vs used preference, March 2016
- SUVs’ appeal increases with acculturation
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- Figure 30: Type of vehicle Hispanics plan to purchase, indexed to all, by language spoken at home, October 2014-December 2015
Car Purchase Research
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- Research starts online, decisions are made by test-driving
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- Figure 31: Hispanics’ vehicle purchase research plans, March 2016
- Acculturated Hispanics more likely to proactively research
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- Figure 32: Hispanics’ vehicle purchase research plans – Select items, by level of acculturation, March 2016
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- Figure 33: Hispanics’ vehicle purchase research plans, by household income, March 2016
Online Research
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- Internet provides information about makes, models, price, and dealerships
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- Figure 34: Hispanics’ plans for using internet research, March 2016
- Hispanic men 35+ more likely to use the internet to define value
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- Figure 35: Hispanics’ plans for using internet research, by gender and age, March 2016
- Online research about pricing increases with acculturation
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- Figure 36: Hispanics’ plans for using internet research, by level of acculturation, March 2016
Hispanics’ Attitudes toward Car Dealerships
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- Not all dealers are the same
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- Figure 37: Hispanics’ attitudes toward car dealerships – Any agree, March 2016
- Car buying and negotiation go hand in hand
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- Figure 38: Hispanics’ attitudes toward car dealerships – Select items, by household income, March 2016
- First impressions key to getting converts
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- Figure 39: Hispanics’ attitudes toward car dealerships – Select items, by gender and age, March 2016
Hispanics’ Attitudes toward Payments, Price, and Value
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- Hispanics aim to balance value with affordability
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- Figure 40: Hispanics’ attitudes toward payments, price, value – Any agree, March 2016
- Younger Hispanics more hesitant about using car loans
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- Figure 41: Hispanics’ buying reference – Loan vs full payment and financing, by gender and age, March 2016
- Higher-household incomes allow Hispanics to look for new cars
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- Figure 42: Hispanics’ buying reference – Loan vs full payment and financing, by household income, March 2016
- More-acculturated Hispanics willing to explore more financing options
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- Figure 43: Hispanics’ buying reference – Financing from dealers vs financing from another institution, by level of acculturation, March 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- A note on acculturation
Appendix – Consumer
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- Key Hispanic metropolitan areas
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- Figure 44: Metropolitan areas with the largest number of Hispanic residents, by country of origin/ancestry, 2010
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