Table of Contents
Executive Summary
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- Overview
- The issues
- Hispanic men are more likely to distrust car sales people
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- Figure 1: Hispanics’ attitudes toward car salespeople and trust, by gender and age, April 2018
- Hispanic car buyers are not a homogeneous group
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- Figure 2: Advanced analysis – Hispanic car buying segments, April 2018
- The opportunities
- Helping Hispanics narrow their options
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- Figure 3: Hispanics’ pre-purchase decisions, April 2018
- Focusing on what matters
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- Figure 4: Advanced analysis – TURF – Hispanics’ research topics of interest, April 2018
- The moment of truth is at the car dealership
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- Figure 5: Hispanics’ research methods, indexed to all, April 2018
- Participating in a family discussion
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- Figure 6: Hispanics’ purchase type, by gender and age, April 2018
- What it means
The Market – What You Need to Know
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- More Hispanics have the idea of purchasing a vehicle
- There are four car buying attitudinal segments for Hispanics
- Hispanics’ youth has them on the market for a new vehicle
- Hispanics are bilingual
- Hispanics have to prioritize expenditures
The Hispanic Car Buyer Prospect
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- Hispanics over index for planning to buy sooner
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- Figure 7: Hispanics’ next car purchase timeline, index to all, Purchase intent, April 2018
- Hispanics planning to purchase in the six months
- A note about extending loan durations
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- Figure 8: Profile of Hispanics planning to purchase their next car purchase in the next 6 months, April 2018
Hispanic Car Buying Attitudinal Segments
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- Not all Hispanic car buyers are the same
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- Figure 9: Advanced analysis – Hispanic car buying segments, April 2018
- Defensive Car Buyers (30%)
- Opportunities
- Characteristics
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- Figure 10: Profile of Hispanic Defensive Car Buyers, April 2018
- No-Haggle Car Buyers (25%)
- Opportunities
- Characteristics
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- Figure 11: Profile of Hispanic No-Haggle Car Buyers, April 2018
- Deal Searchers (23%)
- Opportunities
- Characteristics
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- Figure 12: Profile of Hispanic Deal Searchers, April 2018
- Pragmatic Car Buyers (22%)
- Opportunities
- Characteristics
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- Figure 13: Profile of Hispanic Pragmatic Car Buyers, April 2018
Market Factors
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- Hispanics are young
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- Figure 14: Distribution of population, by age and race/Hispanic origin, 2018
- Hispanics are bilingual
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- Figure 15: Language(s) Hispanics speak at home, January 2017-March 2018
- Low unemployment can give Hispanics confidence to spend
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- Figure 16: Hispanic unemployment (seasonally adjusted), January 2007-April 2018
- Less-affluent Hispanics have to prioritize expenses
- Median household income for Hispanics significantly below national median
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- Figure 17: Median household income, by race and Hispanic origin of householder, 2016
- Figure 18: Household income distribution by race and Hispanic origin of householder, 2016
Market Perspective
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- Household income influences the definition of value
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- Figure 19: Attitudes toward automobiles – concept of value – any agree, Hispanics vs all, by household income, January 2017-March 2018
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- Figure 20: Attitudes toward automobiles – Car as a basic means of transportation – Any agree, Hispanics vs All, by household income, January 2017-March 2018
- The fun factors may not be enough
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- Figure 21: Attitudes toward automobiles – importance of a vehicle that is fun to drive – any agree, Hispanics vs all, by household income, January 2017-March 2018
Strategic Moves – What You Need to Know
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- The latest technology and awards can increase awareness
- Special offers and car sales events drive traffic
- Certified pre-owned vehicles are not resonating with Hispanics
- Using the internet to purchase a vehicle
- The need to stand out
What’s Happening?
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- The latest technology can increase awareness
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- Figure 22: Hispanics’ attitudes toward maintenance costs and latest technology, by household income, April 2018
- Awards can help improve brand perceptions
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- Figure 23: General Motors, Direct Mail, March 2018
- Sales still drive attention
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- Figure 24: Nissan, Acquisition email – Owner Appreciation Event, February 2018
What Needs Time?
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- Buying certified pre-owned vehicles
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- Figure 25: Hispanics’ attitudes toward CPOs, by household income, April 2018
- Purchasing a vehicle online
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- Figure 26: Hispanics’ attitudes toward buying vehicles online, by household income, April 2018
What’s Next?
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- All-inclusive subscription services
- More perks, more warranties
- A smooth experience at the dealership
- Bringing the cars where people are
The Consumer – What You Need to Know
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- Hispanics would like new vehicles, but may end up with used ones
- Household income is a significant driver in the process of deciding which vehicle to purchase
- Hispanics are less likely to be willing to trade in their vehicle
- Hispanics are flexible throughout the process
- Hispanics tend to research areas that improve brands’ reputation
Purchase Type
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- Hispanics consider both new and used vehicles
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- Figure 27: Hispanics’ purchase type, indexed to all, April 2018
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- Figure 28: Hispanics’ purchase type, by Hispanic car buying attitudinal segments, April 2018
- Hispanic men want new, Hispanic women are not sure
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- Figure 29: Hispanics’ purchase type, by gender and age, April 2018
- Household income dictates Hispanics’ car type expectations
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- Figure 30: Hispanics’ purchase type, by household income, April 2018
Purchase Budget
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- Hispanics tend to spend less than the average US consumer per vehicle
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- Figure 31: Amount paid for last vehicle purchased, Hispanics indexed to all, January 2017-March 2018
- A higher household income means Hispanics spend more on their cars
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- Figure 32: Amount paid for last vehicle purchased, by household income, January 2017-March 2018
Trade-in Intent
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- Hispanics less likely to plan to trade in their vehicle
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- Figure 33: Hispanics’ trade-in intent, indexed to all, April 2018
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- Figure 34: Hispanics’ trade-in intent, by car buyer attitudinal segments, April 2018
Pre-purchase Decisions
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- Lack of consensus hints that Hispanics are flexible
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- Figure 35: Hispanics’ pre-purchase decisions, April 2018
- Knowing car type can remove part of the stress
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- Figure 36: Hispanics’ likelihood of knowing what body style they want, by key demographics, April 2018
- Less acculturated Hispanics may welcome payment guidance
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- Figure 37: Hispanics’ likelihood of knowing how they will pay for their next vehicle, by key demographics, April 2018
- Hispanic women aged 35+ are more brand loyal
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- Figure 38: Hispanics’ likelihood of knowing which brand they want, by key demographics, April 2018
Research Topics
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- Hispanics are most interested in car performance topics
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- Figure 39: Hispanics’ research topics of interest, April 2018
- Fuel efficiency and warranties can get Hispanics’ attention
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- Figure 40: Advanced analysis – TURF – Hispanics’ research topics of interest, April 2018
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- Figure 41: Advanced analysis – TURF – Hispanics’ research topics of interest, April 2018
Research Methods
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- Hispanics are less likely to consider consumer and professional reviews important
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- Figure 42: Hispanics’ research methods, indexed to all, April 2018
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- Figure 43: Hispanics’ research methods, by level of acculturation, April 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- A note about acculturation
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