SAN FRANCISCO—What do consumers want more of these days? Luxury cars, according to a new report.
And these luxury car buyers, the study says, tend to be younger.
A new study from Jumpstart Automotive Media indicates that consumers are feeling good enough about their financial condition post-recession to spend more of their monthly income on luxury vehicles.
The report—Today’s Luxury Auto Owners: How Emotion, Experience, And Loyalty Drive Purchase Decisions—shows that luxury car sales have grown, today accounting for 13% of total vehicle sales, up 3% from 2014. Across Jumpstart sites, 34% of shoppers are researching luxury vehicles, up 4% from 2014.
“By and large, this group shares some common characteristics. Today’s luxury owners are young, college educated, own a home, and willing to pay more to get exactly what they want,” Jumpstart said. “We also found that they are more likely to be self-employed and are 69% more likely to be using their cars primarily for their personal business. Individuals in this group are more likely to indulge in ‘high-end’ hobbies and interests. And their top interest is travel, with 55% having taken a trip within the last 12 months; reading books and health and fitness come in second and third, respectively.”
Jumpstart added that there has been a long-held belief that luxury owners are older and more established in their lives.
“But our research tells us otherwise. During our expert panel session, we gained some additional insight as to why a younger demographic makes up
a sizeable portion of today’s luxury auto owners. The industry professionals on our panel said they see these younger individuals ‘over leveraging themselves’ financially to convey a particular image. It’s also worth considering how current financing options—low interest rates, appealing lease packages, credit accessibility, and favorable finance terms—might be enticing these auto shoppers.”