3 Out Of 5 New Car Buyers Are Over 50 Years Old

[The Critic]

Quote:
Every automaker strives to entice younger buyers into its fold, yet more new crossovers and large sedans tend to make their way to market than anything in which the young among us might be interested. What's up with that? Well, it could have something to do with the fact that people under 50 years old just don't buy many new vehicles.

JD Power and Associates studied age as it corresponds to new vehicle purchases, and the results of a survey of 41,000 new vehicle buyers showed that 62 percent of all new cars and trucks sold were delivered to the AARP crowd. Alarmingly, this statistic has spiked up dramatically from 39 percent back in 2001. Our parents and grandparents are also picking up hybrids faster than their children, as 73 percent of all battery-assisted vehicle sales are picked up by those over 50. On the other side of the spectrum, those 35 and younger account for just 12.7 percent of all new vehicle purchases, down from 24.4 percent in 2001.

There are two major reasons the 50-and-up club accounts for such a high total of vehicle sales, lead by the fact that baby boomers, the largest demographic in America, are growing old. But AARP director Mark Bradbury adds that people over 50 have the "ability to spend on higher-ticket items during harsh economic times. Younger adults are moving back home to ease basic financial burdens, such as housing and food." It sure is hard to buy a new car when you're back living with Mom and Dad, but hey, maybe they'll let you borrow theirs.


http://www.autoblog.com/2010/10/04/study-3-out-of-5-new-car-buyers-over-50-years-old/

This is sad, but likely true.

 

[IndyIan]

Originally Posted By: The Critic

On the other side of the spectrum, those 35 and younger account for just 12.7 percent of all new vehicle purchases, down from 24.4 percent in 2001.

I think it shows that the number of young folks in the middle class is dropping quickly as well. Also I think used cars are holding up better these days and aren't as much of a risk as in 2001, making buying one less of a risk.

 

[SLCraig]

Weird not many people buy new cars... I always thought it was so awesome the car you paid $20k for, was worth $5k a few years later.

I buy my cars when they are a few hundred to a few thousand $.

Had a new car once.. Never again.

 

[Boomer]

And this is why ads on TV that constantly target younger buyers amaze me. They don't have the money to spend. But for those who do, ads really ignore them and a lot of what my age group buys is spread by word of mouth dueing conversations that also denigrate the ad situtation. A sharp marketer should be aware of this and adjust his or her campaigns accordingly!

 

[JHZR2]

Why is that sad? The "younger" buyers burn money to no avail trying to convince themselves that they are upscale and deserve all kinds of junk that drains their bank account. Laden with both debt and stupidity, it is a no brainer that this is the case.

Perhaps when better financial management is learned, this will change a bit. In the meanwhile, our peers can burn dollars on fancy purses, shoes, cellphones, cable TV, mashing the go pedal from every stoplight and wondering why they cannot afford a new car.

 

[eljefino]

Old people are also (likely) way more afraid of the 100k mark or even the end of warranty. Maybe the kids are cunning enough to buy used.

They're ingrained in the trade-it-before-it-strands-you mentality.

Of course, if you wanted to know what your deity thinks of money, look at the fools he gives it to. The economy is in *real* trouble when these geezers-in-training drain their old wealth.

I would also be interested in how many car purchaces to 50 year olds are intended for their 20 somethings. Why, Critic, am I painting you with this brush?

Whenever I see some young girl in a sunfire or neon, I think, hmm, daddy was involved.

 

[rjundi]

For me brand new car makes no sense. My life wants, needs and desires seem to change every 5 years. A bit used vehicles make much more sense as new brand vehicles lose large amounts of value quickly.

I think it is great that younger buyers choose used vehicles. It makes far more sense financially and what appears to be shorter attention spans.

I think our youth is getting smarter getting married latter in life also.

 

[mrsilv04]

And people wondered why Pontiac got the ax, and Buick didn't...

Here's part of the answer to that question. Another part of the answer is the popularity of Buick in China.

 

[SteveSRT8]

Haha. Many here seem a little jealous.

Us 50 somethings buy new because we can. Period. And we don't always finance either. We do what we want because we worked our asses off while we were younger and saved our money!

Buying new is not always bad financially if you keep the car awhile. I buy and sell a lot of cars, trucks, bikes, boats and ATV's. Only once in a while does a new car fill my want.

I usually make money on most of them, my favorite purchase is a 'fixer-upper' that I can tweak a bit and turn for a profit.

 

[JimPghPA]

And Ford is planing on making 2011 the last year for the Crown-Vic and the other same size cars.

May be a mistake. Many people 50 and over like those cars.

 

[daves87rs]

I like new cars, but i don't like the high cost of them. I simply can't justify paying over 20 grand for anything, as I don't plan on killing myself to pay for it.


I plan on one new car (compact), and a used SUV or minivan in the next few years...


I also plan to be able to afford to fix them too...too many things going on right now to waste needless money for something as simple as a car....

 

[daves87rs]

Originally Posted By: SLCraig
Weird not many people buy new cars... I always thought it was so awesome the car you paid $20k for, was worth $5k a few years later.

I buy my cars when they are a few hundred to a few thousand $.

Had a new car once.. Never again.

So often it's just easier to fix an old car then to spend 10 times the money of a new one.

A buddy of mine picked an older Escape with plans to do just that....

 

[Kestas]

Compounded interest is one of the benefits of old age!

 

[LS2JSTS]

Originally Posted By: rjundi
I think our youth is getting smarter......

No offense to the young guys around here, there are exceptions in every trend. But there is no way I can agree with this comment.

Bitter(for good reasons imo) maybe, but smarter, hardly. I've witnessed the dumbing down of this country for years. Easier to get into college, easier curriculums, even the SAT's get dumbed down to make the scores look similar over the years.

I'm in the middle between the boomers, sometimes included at their very tail end...but before the X,Y,Z and Me's or whatever name they are giving them these days. The way I see it, this new service economy revolves around the younger generations working at low paying jobs, serving the boomer generation and all the wealth they hold. Slowly spending back into our fake economy some of the last real wealth built in this country.

 

[Spector]

As to over 50 and hybrids, well I am seriously thinking of it as I get into retirement mode. I really want a luxury sedan for trips but economics is pulling me away. Why, simple, when this economy takes off again I firmly believe the price of gas will be in the $4-$5/gallon range. Just look at the fluctuation with just a small jump in the market or consumer spending, gas price futures take off. Our government like our citizens just never learn, this imported oil crisis is not going away until we take a firm stand and stop the purchase of gas guzzlers and stop jumping off at that green light! If the world econimy takes off our energy costs will just skyrocket!

 

[sciphi]

We mid-twentysomethings bought the Fit new since buying a used car around here is a real roll of the dice. The past few years have made folks skimp on their cars. The likelihood of buying Somebody Else's Problem for a daily driver is very good. It's a good fixer-upper market, and terrible when a car dies unexpectedly.

And, with us intending to drive it into the ground, we still think it was a good purchase. It's a car that can easily adapt to tomorrow's needs, and fuel prices.

Will we buy a new car again? Maybe in a few years. Those new fuel economy standards and prices will be in force, and buying new will make more sense.

 

[JHZR2]

Originally Posted By: LS2JSTS
Originally Posted By: rjundi
I think our youth is getting smarter......

No offense to the young guys around here, there are exceptions in every trend. But there is no way I can agree with this comment.

Bitter(for good reasons imo) maybe, but smarter, hardly. I've witnessed the dumbing down of this country for years. Easier to get into college, easier curriculums, even the SAT's get dumbed down to make the scores look similar over the years.

I'm in the middle between the boomers, sometimes included at their very tail end...but before the X,Y,Z and Me's or whatever name they are giving them these days. The way I see it, this new service economy revolves around the younger generations working at low paying jobs, serving the boomer generation and all the wealth they hold. Slowly spending back into our fake economy some of the last real wealth built in this country.


As one of the young guys around here, I could not agree with you more. Note my post above. You stated it all very well.

 

[eljefino]

Originally Posted By: sciphi
We mid-twentysomethings bought the Fit new since buying a used car around here is a real roll of the dice. The past few years have made folks skimp on their cars. The likelihood of buying Somebody Else's Problem for a daily driver is very good. It's a good fixer-upper market, and terrible when a car dies unexpectedly.


I can't agree more. I play with beater cars. Five years ago I could get $1100 for a 1995 saturn, then a ten year old car. I can get the same now for the same car but now 15 years old!!!

The clunkers I drag home need more work too. Takes more to get someone to give up on something.

Am also noticing many fewer tweens buying, or receiving, beater cars. Down to working 30-something stiffs.

 

[Beachboy]

I'm a baby boomer who's quickly approaching 60 years old, and I've been buying new cars since my first one when I was 23 years old. My grandparents and parents always bought new, whether it was cars or houses, and I guess their influence wore off on me. I've purchased slightly used vehicles (less than two years old) as secondary vehicles, but I always want one new vehicle in my stable. The few thousand you save by buying used just isn't worth it to me, having to accept someone else's choice in vehicles and having no idea if the maintenance was performed on schedule. I figure I make money to enjoy some of the finer things in life, and a new car is one thing that's really important to me.

 

[mrsilv04]

Originally Posted By: Beachboy
The few thousand you save by buying used just isn't worth it to me, having to accept someone else's choice in vehicles and having no idea if the maintenance was performed on schedule.


While that *is* a possibility, it is easily avoidable.

The last three used vehicles that I bought all came with completely documented service histories.

Two were provided by the dealership, who had sold the vehicles new, and the original owners had them perform all of the maintenance. The dealer then took both back in as trade-ins.

The third was provided by the owner, backed up with a detailed spreadsheet and receipts (plus all of the extra oil, filters, and coolant that he'd bought, but not yet used).

I keep detailed spreadsheets on all of my vehicles, and gladly pass them on to the new owner as well.

It's an easy way to save several thousand dollars, and it makes the decision to buy used much simpler.