Generation Y buyers, otherwise called the Millennials, are a no-nonsense group with big demands and little patience for the “old” ways of the auto industry, whether it is the cars themselves or the sales and service experience. Industry and trend experts say Gen Y will replace the current demographic of aging baby boomers, who have for so long been the dominant force in the car business, calling for attention from dealers and manufacturers alike.
According to a study last year by consulting firm Deloitte, Gen Y buyers born in the early 1980s through the early 1990s represent on average two of five car buyers, with some estimates stating they will be purchasing 75 per cent of all vehicles by 2025. “This audience is the future,” said Michelle Krebs, a senior analyst at Edmunds.com. “It’s absolutely critical that automakers try to get this market now.”
When it comes to the actual negotiation, Millennials don’t want to haggle at the dealership. They do their research prior to stepping into a car dealer’s showroom. They know the make and model they want, and they’ve probably looked up the invoice prices online. If a car salesman tries to haggle on pricing or pressure them into looking at a car they aren’t interested in, these buyers are more likely to walk out the door rather than stick around. Gen Y also places a big importance on customization and personalization of their vehicles. “There’s a definite shift to use your car as an extension of your personality, to make a statement about yourself,” says Lexus marketing chief Brian Bolain.
Manufacturers are answering the need here with vehicles that focus on the complete driving experience, with increasingly innovative technology. Bluetooth integration, turn-by-turn navigation and sophisticated information display units are now becoming commonplace. Dealers, meanwhile, will need to adapt their selling strategies as well. Before long, suggests The Detroit News, progressive dealerships will begin staffing young sales people armed who are comfortable with talking to prospective customers both online and offline. This is not surprising considering that studies show that more than 90 per cent of car shoppers begin online. Furthermore, Millennials visit an average of 25 sites before buying a vehicle, according to Google, and they are not particularly brand loyal.
Moving forward, we see that the new wave of younger Gen Y buyers is starting to change not only what cars are rolling into dealerships, but also how the deals are closed. If you are in the market for a new car and looking for the best deals without the unwanted haggling, we dove into our data to find out the hottest deals for December, right in time for the new year:
2014 Volvo XC90 AWD 5dr 3.2
Invoice/Dealer Cost: $47,142
MSRP: $50,800
Manufacturer Incentive: $8,500
Unhaggle Savings: $2,008
Total Price After Sales Tax (CASH PURCHASE): $47,620
Total Price After Sales Tax (FINANCING): $57,225
2014 Subaru Outback 5dr Wagon CVT 2.5i Touring
Invoice/Dealer Cost: $29,370
MSRP: $32,395
Manufacturer Incentive: $1,500
Unhaggle Savings: $2,203
Total Price After Sales Tax (CASH PURCHASE): $34,439
Total Price After Sales Tax (FINANCING): $35,569
2014 Honda CR-V AWD 5dr LX
Invoice/Dealer Cost: $26,310
MSRP: $28,290
Manufacturer Incentive: $1,500
Manufacturer Incentive ($500 applied after-tax): $442
Unhaggle Savings: $1,520
Total Price After Sales Tax (CASH PURCHASE): 30,123
Total Price After Sales Tax (FINANCING): 31,818
2014 Infiniti Q50 AWD Premium Sedan
Invoice/Dealer Cost: $39,836
MSRP: $43,400
Manufacturer Loyalty Incentive (or 2% off finance rate): $1,500
Unhaggle Savings: $2,249
Total Price After Sales Tax (CASH PURCHASE): $47,212
Total Price After Sales Tax (FINANCING): $47,212
2014 Toyota Corolla Sedan
Invoice/Dealer Cost: $18,785
MSRP: $20,200
Unhaggle Savings: $1,015
Total Price After Sales Tax (CASH PURCHASE): $23,549
Total Price After Sales Tax (FINANCING): $23,549
Note: Vehicle pricing and incentive data is provided by Canadian car buying service Unhaggle.com. For more information on purchasing any of these vehicles or others, please visit Unhaggle.com. While data is accurate at time of publication, pricing and incentives may be updated or discontinued by individual dealers or manufacturers at any time. Typically, manufacturer incentives expire at the end of every month. All manufacturer incentives are shown for Ontario unless otherwise noted. Vehicle availability is also subject to change based on market conditions. Unhaggle Savings is a proprietary estimate of expected discount in addition to manufacturer incentive based on actual savings by Unhaggle customers.
