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Hispanics' Attitudes toward Car Buying - US - June 2015

Hispanics' Attitudes toward Car Buying - US - June 2015

“As Hispanics become more acculturated, they tend to become more sophisticated car buyers. As they use more sources of information, they become more open to considering a wider variety of car types. As this change in their approach toward car buying takes place, car brands will benefit from partnering with dealers and train sales staff to provide more of a consulting approach rather than a sales approach when dealing with Hispanics.”

– Juan Ruiz, Senior Multicultural Analyst

This report covers the following areas:

Domestic brands lack positioning and are bought mostly used
Hispanics are pragmatic in their approach to car buying
Dealers are the best source of information; power should be used wisely


SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Abbreviations and terms
Terms
A note on acculturation
EXECUTIVE SUMMARY
Hispanic households buy a car as soon as they can afford it
Figure 1: Household car ownership, by household income and Hispanic origin, November 2013-December 2014
Majority of Hispanics gravitate toward conventional cars, but over index on other categories
Figure 2: Type of vehicle household most recently acquired, by Hispanic origin, November 2013-December 201410
Likelihood to buy cars that are new increases with acculturation
Figure 3: Condition (new, used, or leased) of vehicle household most recently acquired, by language spoken at home and Hispanic origin, November 2013-December 2014
Younger Hispanics more enthusiastic about buying a car, but may face scrutiny
Figure 4: Hispanics' expected car-buying timing, by gender and age, March 2015
Dealers are the best source of information
Figure 5: Sources of information that Hispanics use for researching about cars, March 2015
Domestic vehicles lack positioning among Hispanics
Figure 6: Correspondence Analysis – Hispanics’ attitudes toward vehicles, March 2015
Fuel economy is important to Hispanics
Figure 7: Important factors for Hispanics when buying a vehicle, March 2015
What we think
ISSUES AND INSIGHTS
Domestic brands lack positioning and are bought mostly used
The issues
The implications
Hispanics are pragmatic in their approach to car buying
The issues
The implications
Dealers are the best source of information; power should be used wisely
The issues
The implications
TREND APPLICATION
Trend: Experience is All
Trend: Prove It
Trend: Never Say Die
MARKET FACTORS
Key points
Hispanics’ purchasing power projected to reach $1.7 trillion by 2019
Figure 8: Purchasing power, by race/Hispanic origin, 1990-2019
Improving labor market for Hispanics has a positive impact on their confidence
Figure 9: Hispanic labor force participation and unemployment rate, January 2007-April 2015
Hispanic market becoming bicultural
Cars are staple items
KEY PLAYERS
Key points
SCOPE AND THEMES
What you need to know
Definition
Data sources
Consumer survey data
Abbreviations and terms
Terms
A note on acculturation
EXECUTIVE SUMMARY
Hispanic households buy a car as soon as they can afford it
Figure 1: Household car ownership, by household income and Hispanic origin, November 2013-December 2014
Majority of Hispanics gravitate toward conventional cars, but over index on other categories
Figure 2: Type of vehicle household most recently acquired, by Hispanic origin, November 2013-December 201410
Likelihood to buy cars that are new increases with acculturation
Figure 3: Condition (new, used, or leased) of vehicle household most recently acquired, by language spoken at home and Hispanic origin, November 2013-December 2014
Younger Hispanics more enthusiastic about buying a car, but may face scrutiny
Figure 4: Hispanics' expected car-buying timing, by gender and age, March 2015
Dealers are the best source of information
Figure 5: Sources of information that Hispanics use for researching about cars, March 2015
Domestic vehicles lack positioning among Hispanics
Figure 6: Correspondence Analysis – Hispanics’ attitudes toward vehicles, March 2015
Fuel economy is important to Hispanics
Figure 7: Important factors for Hispanics when buying a vehicle, March 2015
What we think
ISSUES AND INSIGHTS
Domestic brands lack positioning and are bought mostly used
The issues
The implications
Hispanics are pragmatic in their approach to car buying
The issues
The implications
Dealers are the best source of information; power should be used wisely
The issues
The implications
TREND APPLICATION
Trend: Experience is All
Trend: Prove It
Trend: Never Say Die
MARKET FACTORS
Key points
Hispanics’ purchasing power projected to reach $1.7 trillion by 2019
Figure 8: Purchasing power, by race/Hispanic origin, 1990-2019
Improving labor market for Hispanics has a positive impact on their confidence
Figure 9: Hispanic labor force participation and unemployment rate, January 2007-April 2015
Hispanic market becoming bicultural
Cars are staple items
KEY PLAYERS
Key points
Five brands dominate the car market among Hispanics
Figure 10: Brand and condition (new, used, or leased) of vehicle Hispanic household most recently acquired, November 2013-December 2014
Japanese brands have well-defined mission statements
Car dealers are another key player
OVERVIEW OF HISPANICS’ CAR OWNERSHIP
Key points
Hispanic households buy a car as soon as they can afford it
Figure 11: Household car ownership, by household income and Hispanic origin, November 2013-December 2014
Northeast Hispanic households least likely to own a car
Figure 12: Household car ownership, by region and Hispanic origin, November 2013-December 2014
Higher household income allows Hispanics to afford more cars
Figure 13: Number of cars owned per household, by household income and Hispanic origin, November 2013-December 2014
HISPANICS’ LAST CAR PURCHASE
Key points
Majority of Hispanics gravitate toward conventional vehicles, but over index on other categories
Figure 14: Type of vehicle household most recently acquired, by Hispanic origin, November 2013-December 2014
Likelihood to buy cars that are new increases with acculturation
Figure 15: Condition (new, used, or leased) of vehicle household most recently acquired, by language spoken at home and Hispanic origin, November 2013-December 2014
Purchases evenly split between domestic and foreign brands
Figure 16: Make and origin (domestic or imported) of vehicle Hispanic household most recently acquired, November 2013-December 2014
Foreign brands more likely than domestic brands to be bought new
Figure 17: Toyota Service Centers, Electrician commercial, May 2015
Figure 18: Brand and condition (new, used, or leased) of vehicle Hispanic household most recently acquired, November 2013-December 2014
HISPANICS’ NEXT CAR PURCHASE
Key points
Younger Hispanic enthusiasts may face scrutiny
Figure 19: Hispanics’ expected car-buying timing, by gender and age, March 2015
Hispanics have many reasons to buy a car
Figure 20: Hispanics’ reasons for car buying, by level of acculturation, March 2015
Chrysler highlights new features of the 2015 Chrysler 200
Figure 21: Chrysler 200 "Psychic" TV ad, March 2015
Dealers are the best source of information
Figure 22: Sources of information that Hispanics use for researching about cars, March 2015
Bringing a piece of the success in Mexico
VEHICLE TYPES HISPANICS CONSIDER
Key points
Hispanics over index on compact vehicles and minivans
Figure 23: Hispanics’ vehicle types consideration, March 2015
Brands stress convenience and style offered by their compact vehicles
Toyota talks about style
Figure 24: Design TV ad, Toyota Corolla 2015, Car logos, April 2015
Honda highlights the versatility of Honda Fit for Millennials
Figure 25: Honda, “#UnBuenFit - Discover the All-New 2015 Honda Fit with Felipe Esparza (English),” June 2014
HISPANICS’ CAR PERCEPTIONS
Figure 44: Population, by race and Hispanic origin, 2010-20
Hispanic share of births
Figure 45: Distribution of births, by race and Hispanic origin of mother, 2002-12
The Hispanic and total US population by age
Figure 46: Hispanic share of the population, by age, 2010-20
Figure 47: US share of the population, by age, 2010-20
Characteristics
Marital status
Figure 48: Marital status of people aged 18 or older, by race and Hispanic origin, 2013
Figure 49: Marital status of Hispanics, by age, 2013
Figure 50: Gender ratio, by age and Hispanic origin, 2014
Generations
Figure 51: Generations, by Hispanic origin, 2015
Figure 52: Distribution of generations by race and Hispanic origin, 2015
Hispanics live in larger households
Figure 53: Average household size and average number of adults and children in households, by race and Hispanic origin, 2014
Hispanics by country of origin/heritage
Figure 54: Hispanic population, by country of origin/heritage
Mexicans (63% of US Hispanics)
Figure 55: Number of tortilla-related products launched per year in the US, 1996-2013
Puerto Ricans (9% of US Hispanics)
Cubans (4% of US Hispanics)
Dominicans (3% of US Hispanics)
Central Americans (8% of US Hispanics)
South Americans (5% of US Hispanics)
Figure 56: US Hispanic population, by country of origin/heritage, 2000-10
Figure 57: Largest* Hispanic groups, by region, by country of origin/ancestry, 2010
Hispanics by geographic concentration
Figure 58: Hispanic population, by region of residence, 2000-10
Figure 59: Hispanic or Latino population as a percentage of total population by county, 2010
States with the most Hispanic population growth
Figure 60: States ranked by change in Hispanic population, 2000-10
Figure 61: Percentage change in Hispanic or Latino population by county, 2000-10
Key Hispanic metropolitan areas
Figure 62: Metropolitan areas with the largest number of Hispanic residents, by country of origin/ancestry, 2010
APPENDIX – ACCULTURATION
What is acculturation?
Figure 63: Acculturation diagram
Figure 64: Variables that affect acculturation
Why is level of acculturation important?
Levels of acculturation
Figure 65: Characteristics of primary acculturation levels
What is retroacculturation?
APPENDIX – OTHER USEFUL TABLES
Figure 66: Hispanics’ household car ownership, by language spoken at home, November 2013-December 2014
Figure 67: Type of vehicle Hispanic household most recently acquired, by household income, November 2013-December 2014
Figure 68: Type of vehicle Hispanic household most recently acquired, by language spoken at home, November 2013-December 2014
Figure 69: Make and origin (domestic or imported) of vehicle Hispanic household most recently acquired, by household income, November 2013-December 2014
Figure 70: Make and origin (domestic or imported) of vehicle Hispanic household most recently acquired, by language spoken at home, November 2013-December 2014
Figure 71: Hispanics’ attitudes toward vehicles, March 2015
APPENDIX – TRADE ASSOCIATIONS
Asociación Mexicana de Distribuidores de Automotores (AMDA)
Best Selling Cars Blog
Center for Automotive Research (CAR)
Association of Hispanic Advertising Agencies (AHAA)
National Association of Hispanic Publications (NAHP)/National Hispanic Press Foundation
National Automobile Dealers Association (NADA)
United States Hispanic Chamber of Commerce (USHCC)
US METHODOLOGY
CONSUMER RESEARCH
Primary Data Analysis
Secondary Data Analysis
Qualitative Research
Further Analysis
Social Media Research
TRADE RESEARCH
STATISTICAL FORECASTING

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