Are Younger Buyers Going to Help the Automobile Industry?

The new-car market in the United States is witnessing a gradual return of younger buyers. After remaining for several years on the sidelines, young car enthusiasts are selecting new vehicles, supported by a slowly improving job market (depends where you live) and easing credit conditions. The job market could be a lot rosier and the recession left in the dust if taxes and regulations were not so debilitating. This would then help out the entire car industry.

Furthermore and back to reality, The Power Information Network of J.D. Power and Associates recently reported that the rate of return of younger buyers is now higher than the rate in all other age categories. This is an amazing fact since the unemployment rate for young people is incredibly high.

Searching for the Best Deals

This new trend is also viewed a positive sign for the auto shipping industry, which expects better business from younger customers. However, at the same time, auto transport companies will have to gear up to meet the expectations of young buyers who are many times more aware and more discerning than buyers in other age groups. These buyers are more likely to check out reliable auto transport reviews and compare the services offered by a few different shippers before they make a final choice.

Major Slice of the Market

The age group of younger buyers ranges from buyers in their teens through the age of 35. Buyers in this age group constitute a huge 23% of the total retail car customers. This figure is the highest since 2008. Multiple car sales to large customers such as taxi and rental car companies are not a part of the retail sales category. 12% of all new-vehicle registrations recorded from January to July this year are from buyers in the age group of 18 to 34. This is the highest figure recorded since 2007.

This younger crop of buyers has very similar auto transport service needs as the buyers in other age groups. Therefore, an auto transport broker or company must understand the needs and aspirations of the people in this age group. Auto transport companies online reputation make a difference to the customers in this category. The younger generation is more Internet-savvy and has an active presence on various social media networks. These are important channels of public communication for the younger age groups, which a transport company cannot afford to ignore.

Reasons for the New Trend

Auto market analysts are of the opinion that the used car market is able to offer better values in today’s economic conditions. This encourages a number of young buyers to sell off their old car and select a new vehicle. But this is after they already spent more money than they should because they chose to buy a new car in the first place rather than a used one. So this is a strange market occurrence.

Another reason is that the credit terms have become slightly easier in recent times. The growth in long-term loans, which are 6 years and over, is becoming increasingly visible across the auto industry. The monthly payment is reduced due to longer term loans.

Perhaps these young folks are already looking at huge college loans and they look at another loan as something that is not a big deal. Perhaps they do not realize that buying a new car is not always a good investment because the car loses 20% of its value the moment it drives off the lot (a fact already hinted at above). This is not the case in terms of buying a used car.

Ship Your Car at Competitive Rates

Autos in Transit is one of the leading transport service providers for your new or old vehicle. We will help you receive free auto transport quotes from six to eight well-known shipping companies. At the present we are also able to offer you discounts of up to 45% to help you find the cheapest auto transport rates. Get in touch with us at 800-595-2062.