Not that long ago, many dealerships neglected marketing to millennials because they weren’t buying cars. So what changed? The economy. Upon graduation, millennials faced a recession, a weak job market, rising insurance rates, new school loans to pay off, and more. With a better economy and more available jobs, millennials are buying more cars. And though millennials (43% to be exact) have the lowest credit scores of all generations, they are likely to make up about 40% of the new-vehicle market by 2020!
Why the low credit scores?
Bev O’Shea from Nerd Wallet says it best: “The biggest factors in a good credit score tend to be low credit utilization, on-time payments, a long credit history and a mix of both revolving and installment accounts. Millennials already start with a shorter credit history, and they have the added challenge of having less credit available.”
For this generation, low credit scores are in the cards. This translates to higher interest rates, and Ian Fortune from Web2carz outlines what dealers need to know: “No longer is the value measured by the total cost of the car, instead the month cost of the car is what’s considered more in their purchasing decision. The idea of having to pay more in interest over the course of several month isn’t a deterrent for them.”
Bad credit + Millennials + New Vehicles = One Unique Marketing Plan
And in being the largest growing new-vehicle segment, dealers should really focus on marketing tactics that drive millennials to their stores. As leaders of the digital revolution, this generation has a huge reputation for being overly tech savvy. So, maintain your social presence, deliver digital ads, utilize mobile marketing, incorporate tablets throughout the sales process, personalize everything, and send them video snaps and YouTube clips of their favorite vehicles. Let them converse with you over chat tools and fill out online internet forms; however, absolutely don’t forget to target active shoppers in your area that have been out looking for a vehicle within the last 24-hours and have yet to buy. Just because they didn’t find you first, doesn’t mean they don’t want to be found.
Read more trending articles from:
Bev O’Shea at Nerd Wallet: 43% of Millennials Have Bad Credit, Transunion Says
Ian Fortune at Web2carz: Millennials Are Buying Cars in Record Numbers
Diana Kurylko at Automotive News: The Millennials are Coming