Guiding Truths for the Road Ahead

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Millennials and Cars: Guiding Truths for the Road Ahead.

connecktions January 2015

There’s No Denying It: Change Is Upon Us.

Can one generation undo America’s love affair with cars?

Or are outside forces—like the economic climate and innovations in mobility—obscuring Millennials’ fundamental beliefs about driving and cars?

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BELIEVE ONLY SOME OF THE HYPE.

Getting A License Still Matters To Millennials. One-third still rate it as a “defining moment” in their lives.

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First Child 69%

Getting Married 63%

First Home 73%

Moving Out of Parent’s Home 52%

First Job 42%

First Driver’s License 33%

First Car 28%

First Date 17%

First Computer 6%

First Cell Phone 5%

% 28

First car.

First driver’s license. 33 %

Source: C-K connecktions Survey, July 2014

But The Goal Line Has Moved Considerably.

As it turns out, the “rejection” of driving we see among teens and young adults may be more rationalization than true lack of interest.

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Graduated Driver Licensing (GDL Laws)

During the early 1990s, many states began enacting GDL laws designed to reduce the accident rates of novice drivers. Most programs include three stages:

Learner Stage Requires supervised driving, culminating with a driving test

Intermediate Stage Limits unsupervised driving in higher-risk situations

Full Privilege Stage A standard driver’s license

Highlights of US GDL Laws

Cell Phones/Texting 37 states and D.C. ban all cell phone use by novice drivers

Nighttime driving restrictions

48 states and D.C. restrict nighttime driving during the intermediate stage

Passenger restriction 47 states and D.C. restrict the number of passengers during the intermediate stage

Novice driver decal New Jersey requires those younger than 21 without full-privilege licenses to display a decal on their vehicle identifying them as new drivers

When The Time is Right, Millennials Buy Cars.

According to Deloitte research, 8 percent of Millennials say they never intend to own a vehicle.

On the flip side, the vast majority either already own or intend to own a vehicle at some point.

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%

Source: Deloitte research

A Car? Don’t Mind If I Do.

Priority-wise, owning a car is on par with saving for the future and continuing their education.

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3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0

Mo

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A Failure To Launch. They just haven’t reached the milestone yet.

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All Millennials 73%

Younger Millennials 61%

Older Millennials 86%

Live with Parents 54%

61 %

of younger Millennials (18-26) own a vehicle.

86 %

of older Millennials (27-36) own a vehicle.


57%

55%

49%

41%

38%

32%

29%

18%

12%

63%

48%

42%

34%

39%

33%

25%

16%

14% 18-26 27-36

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Their ideal “good life” has some really nice stuff in it. Call it a case of delayed materialism. Young Millennials are even more interested in acquiring high-end and luxury goods than are older Millennials.

VACATION HOME OR TIMESHARE

A NEW HIGH-END CAR OR TRUCK

A HOME VALUED OVER $1 MILLION

NEW WARDROBE EVERY YEAR

A BOAT OR RECREATIONAL VEHICLE

THE LATEST HIGH-TECH TABLET

A NEW SMARTPHONE YEARLY

AN EXPENSIVE WATCH

NONE OF THESE


7.1%

4.5%

4.8%

3.6%

Young Millennials (18-26)

Older Millennials (27-36)

Generation X

Boomers

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GET READY Because Millennials are making plans to buy cars—at a higher rate than any other age cohort.


54%

40%

41%

37%

38%

39%

25%

31%

19%

39%

37%

37%

26%

27%

25%

20%

18%

15%

22%

27%

27%

15%

13%

12%

12%

6%

7%

MillennialsGen XBaby Boomers

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A HARD(-WIRED) BARGAIN. Their ideal car needs to satisfy a tall, and high-tech, list of needs.

A USB PORT OR AN AUXILIARY CABLE TO HOOK UP MY MP3 PLAYER OR PHONE TO MY CAR

BUILT-IN BLUETOOTH PAIRING SO I CAN MAKE HANDS-FREE CALLS

TURN-BY-TURN DIRECTIONS PROVIDED IN VEHICLE

A TOUCH SCREEN FOR ENTERTAINMENT, NAVIGATION AND CAR INFORMATION

BLUETOOTH AUDIO STREAMING SO I CAN PLAY PODCASTS, MUSIC OR INTERNET RADIO FROM MY PHONE

ABILITY TO INSTALL APPS, LIKE GOOGLE MAPS, THAT WOULD ALLOW ME TO VIEW MY CELL PHONE’S MAPS AND DIRECTIONS ON MY VEHICLE’S DISPLAY

A TELEMETRY SYSTEM, SUCH AS ONSTAR, FOR DIAGNOSTIC HELP OR CONCIERGE SERVICES

THE ABILITY TO INSTALL APPS IN MY VEHICLE (E.G., NETFLIX, HULU, FACEBOOK, PANDORA, IHEARTRADIO, BING, STITCHER, YELP, ETC.)

A SEPARATE CELL DATA PLAN FOR MY CAR IF IT WERE HIGH SPEED (E.G., 4G LTE)

Source: Mintel, In-car Electronics: Entertainment and Navigation – U.S., August 2013

Set Your Sights (And The Experience) On Being Needed.

The Road Ahead

1. Recognize that the sky is not falling.

2. Think life stage, not age, when targeting Millennials with automotive products and services.

3. Offer seamless transitions between digital environments and in-person experiences.

4. Think like a Millennial: A car is the start of an experience, not a static object or end point.

5. Speak their language: Keep it direct but welcoming … and be lightning quick to respond.

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Thank You Guiding Truths for the Road Ahead.

FOR INTERNAL USE ONLY.

Any and all ideas, concepts and/or strategies, including trademarks or trade descriptions which are part of this presentation, are the sole property of Cramer-Krasselt and shall not be used without the express written authorization of Cramer-Krasselt. © 2015 Cramer-Krasselt

For More Information, Contact: Betsy Brown Cramer-Krasselt (414) 227-3500 [email protected]

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Guiding Truths for the Road Ahead