Five years ago the University of Michigan Transportation Research Institute made news with a study that showed car buyers were getting older — and the key to future success would be the Baby Boomers. Adults in the 50-64 year old age group were 15 times more likely to buy new vehicles than 18-24 year olds. Further reflecting the weakness of the 18-24 year old segment, another study from the Institute showed that the percentage of 19-year-olds without a driver’s license had fallen below 70%, its lowest in almost 30 years.
“Collectively,” Institute reported, “the results show the industry’s success is still predicated on its ability to connect with older buyers.” Michael Sivak, who led the study, said “the probability of buying a vehicle per driver is highest for people between 55 and 64 years of age. That is probably surprising to many people because they think of much younger people being the target audience.”
Is the trend still holding? How does it apply in the Canadian marketplace?
According to Vividata Summer 2018:
When you factor in price points, eliminating the very low end of the market (mostly in used cars), the Boomer dominance is even more pronounced.
The latest numbers confirm the findings: when it comes to automobiles, Boomers drive the market.
Number of Zoomers who personally hold investments and savings of $500,000 or more. No other age group is close. In fact, nearly seven out of ten Canadians (69.2%) with investments and savings of $500,000 or more, are Zoomers. Follow the money. Source: Vividata Spring 2018.