Across the US, increasingly, Hispanic Americans are purchasing new and luxury vehicles. That’s why, if you own or work at an automotive dealership, making an investment in reaching local Hispanic auto buyers is essential.
In 3 Key Hispanic Trends You Need to Know, we highlighted rising Latino household income and its influence on increased spending for new and luxury items such as vehicles.
HERE ARE SOME MORE COMPELLING FINDINGS ABOUT HISPANIC AUTO BUYERS YOU SHOULD KNOW:
1. Hispanic auto buyers hold substantial buying power
$27.9 billion in registered new vehicle transactions (11% of the total market – and growing) are made by Hispanic consumers. That’s just one highlight in The Rise of the Hispanic Car Buyer.
In terms of luxury vehicles, Hispanic purchasing growth rose 16% from 2013 to 2015; significantly higher than “just 5% growth among non-Hispanics over the same period of time.”
Notably, Dealer Marketing Magazine highlights that, “Auto purchases by Hispanic buyers are on track to double from 2010 to 2020, growing at a pace of 116%. Hispanics will buy nearly 2 million new vehicles this year.”
Will you sell your share of vehicles to this growing market?
2. Purchases by Hispanic auto buyers are significant to manufacturers
According to IHS Automotive’s Polk market data unit, in 2015, “Hispanic buyers delivered 96% of Ford and Chevrolet’s combined year-over-year retail sales growth, 33% of Nissan’s, 35% of Toyota’s and 100% of Honda’s.”
Pat Pineda, Group Vice-President of the Hispanic Business Strategy Group in Toyota Motor’s New York corporate offices notes the impact of Hispanic auto buyers on their brand. “Hispanics purchased one of every four Corollas we sold in the United States last year”, and, “They bought one out of every five Lexus IS’s we sold.”
Connection to manufacturer and brand matters. There’s no better time to start than now.
3. Hispanics are more likely to buy NEW vehicles
Quality and brand reputation matters to Hispanic auto buyers. Especially for those in the Southwest, there is a clear tendency toward purchasing new vehicles versus used.
According to Libby Murad-Patel, Vice President of Strategic Insights and Analytics for Jumpstart Automotive Group, that’s because, “they often plan to hold onto a vehicle for a while, then pass it down to a family member.”
IHS statistics suggest that Hispanics are four times more likely to buy a new vehicle as their first purchase and, because they start young, have the potential to buy three or more new vehicles in their lifetime.
Not only are they more likely to buy new, “Hispanics are 49% more likely to buy a luxury brand as their first new vehicle than Non-Hispanics.”
The value of attracting and earning the loyalty of the first time Hispanic auto buyer is clear.
AS AN AUTOMOBILE DEALERSHIP, YOU ARE MISSING OUT IF YOU CHOOSE NOT TO INVEST IN GENUINELY CONNECTING WITH HISPANIC AUTO BUYERS
This growing market with significant buying power is one you can’t afford to ignore. HOW you go about developing relationships with Hispanic consumers matters!
Tap into Posada Media’s expertise in connecting brands with Hispanic consumers today.
Ask us how we can boost the growth of your Texas auto dealership by creating effective campaigns that connect and engage with Hispanic auto buyers (and their families) to drive traffic your way.