Automotive News Canada - April 2018 - v2 - 11

* APRIL 2018

Millennial insider: This is how we want to buy cars
SURPRISE! IT TURNS OUT
that young people actually do
want to buy cars, but they
don't have much interest in
touring all the local dealerships as part of the process.
According to credit-reporting company TransUnion, millennials and Generation Z, the
youngest generation that is
just beginning to enter the
market, are leading older generations when it comes to
automotive debt. (See full
story, page 20). The average
non-mortgage debt balance of
a millennial, including auto,
credit cards and other factors,
rose 13 per cent year-overyear to $21,252, while
Generation Z rose 23 per cent
to an average of $6,871.
Those numbers still lag the
average Canadian's debt balance of $29,312, but the rate
of growth drives home a key
point: Young people are not
afraid to take on debt to buy a
new vehicle or to make other
major purchases.
The conventional wisdom
for years was that most young
buyers would have no interest
in vehicle ownership. After all,
this is the same generation
that fueled the growth of
ride-sharing
services
such as
Uber and
has flocked
to urban
centres
where vehicle ownerTransUnion
ship might
Canada's
not even be
Matt Fabian
necessary
says dealers
to get
need to get
around.
ahead of the
But the
online curve
facts tell a
if they want
different
Millennials
story. Most
as their
young peocustomers.
ple, espe(PHOTO:
cially the
TRANSUNION)
majority
that doesn't live in downtown
Toronto or Vancouver, want to
own a vehicle. And as they
grow older, and make more
money, the more likely they
are to want to buy one.
The key for the industry will
be shifting its business practices to appeal to younger buyers
who do most of their research
online before heading into a
dealership. The easier dealers
can make the shopping process, and the more they offer
online, the more likely they will
be to win over young buyers,
not to mention older buyers
who are increasingly reliant on
the Internet.
This is something I've dealt
with personally. I don't consider myself the most tech-savvy
millennial in the world, but
when I was in the market for a
new vehicle a couple years
ago, I did most of my research
online before settling on what
I wanted. Friends who have
recently bought new vehicles
are exactly the same.
At the same time, it is
important that dealers be able
to thoroughly explain all
aspects of a vehicle's technology. For example, moving from

FROM TORONTO

JOHN IRWIN

COMMENT
a 10-year-old car to a new
model will require a crash
course on how modern infotainment systems work. Apple
CarPlay or Android Auto sound
enticing when shopping online,
but the dealer is the bridge to

the realities of day-to-day ownership. I mean, what does
"Bluetooth connectivity" actually mean? How does the Wi-fi
hot-spot work? Does it really
make life easier? What is
active-safety technology and
how do you even know it's
working?
Younger buyers, and,
increasingly, older buyers,
already know what they want
when they enter a dealership.
Being useful and taking those
buyers to the next level will
help dealers get ahead of their
competitors. - ANC

With new information that the under-30 crowd is keen on car
ownership, product planners will have the daunting task of figuring out what they actually want. Will they go for the utility vehicles that their parents love, or perhaps a sedan? ( P H O T O : N I S S A N )

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Table of Contents for the Digital Edition of Automotive News Canada - April 2018 - v2