Generational Insights in the Automotive Market 2024

Experian Automotive’s latest Special Report on Automotive Consumer Trends and Analysis provides a detailed look at generational insights in the U.S. light-duty vehicle market through May 2024. This report offers crucial data for industry stakeholders, including lenders, FinTech companies, dealers, OEMs, media platforms, and insurance carriers. To read the full report Click Here.

Experian’s Data Assets

Experian’s unique position stems from its ownership of three primary database assets:

1. North American Vehicle Database:

1. • 963M+ vehicles in the U.S. and Canada
   • 340M+ U.S. vehicles in operation (VIO)
   • 21.8B+ vehicle history records
   • 438M+ title brands
   • 402M+ accident and damage-related events

1. ConsumerView Marketing Database:

1. • 250M+ individuals
   • 126M+ households
   • 5,000 consumer attributes
   • 490M mobile IDs
   • 200M+ connected TV IDs
   • 750M hashed emails
   • 2,400+ audience segments, including 750+ auto audiences

1. File One Credit Database:

1. • 2M+ credit inquiries daily
   • 1.3B+ transaction updates/month
   • 245M+ credit-active consumers
   • 50M+ public records
   • 99.9% updates within 24 hours

Experian leverages extensive databases to provide comprehensive automotive intelligence, serving various stakeholders with billions of data insights.

Generational Breakout

The report segments consumers into five generations:

1. Gen Z (1997-2012)
2. Millennials (1981-1996)
3. Gen X (1965-1980)
4. Baby Boomers (1946-1964)
5. Silent Generation (1928-1945)

Understanding the distinct characteristics of each generation helps tailor marketing strategies and product offerings in the automotive sector.

Key Financial Insights

Average Loan Amounts (New and Used Retail Purchases)

Average Monthly Payments (New and Used Retail Purchases)

Average Loan Terms (in Months)

Gen X leads in both new and used vehicle loan amounts and monthly payments, while Gen Z shows a trend towards longer loan terms.

New Vehicle Registration Trends

5-Year Market Share Trend

*2024 is a partial year

Gen X and Millennials dominate new vehicle registrations while Baby Boomers show a declining trend over the past five years.

Segment Preferences (2024 Data)

Market Share by Segment

• Non-Luxury Vehicles:

• • Gen Z: Over-indexes for cars.
  • Millennials & Gen X: Strong presence in luxury segments.

• Luxury Vehicles:

• • Gen X over-indexes for luxury purchases.

Generational preferences indicate that younger buyers lean towards non-luxury vehicles while older generations are shifting towards luxury options.

Fuel Type Preferences (2024 Data)

Market Share by Fuel Type

• Gas:

• • Gen Z: Over-indexes for gas vehicles.

• Electric Vehicles (EVs):

• • Gen Z and Millennials show increasing market share in EV registrations.

Younger generations are increasingly opting for electric vehicles while older generations tend to prefer traditional gas-powered cars.

Top Models by Generation (Last 12 Months)

1. Gen Z:

1. • Honda Civic (3.9%)
   • Toyota RAV4 (3%)

1. Millennials:

1. • Honda Civic (2.6%)
   • Toyota RAV4 (2.6%)

1. Gen X:

1. • Ford F-150 (2.8%)

1. Baby Boomers:

1. • Honda CR-V (3%)

The Honda Civic emerges as a favorite among both Gen Z and Millennials, while the Ford F-150 leads among Gen X buyers.

Final Thoughts

This comprehensive analysis of generational trends in the automotive market reveals significant differences in purchasing behaviors, preferences, and financial decisions across age groups. Understanding these nuances is crucial for industry players to tailor their strategies effectively in the evolving automotive landscape. By recognizing these trends and insights from Experian’s report, stakeholders can better cater to the diverse needs of each generation in the automotive market.