Pub. 4 2014 Issue 2

10 AUTOMOBILE DEALER NEWS ILLINOIS www.illinoisdealers.com F or any car dealership, it makes sense to focus on the people who are most likely to have, and spend, money. That group, increasingly, is Gen Y: • It has 85 million people in it, all born between 1975 and 1995, making it the biggest generation in U.S. history. You thought they were outnumbered by the Baby Boom generation? They aren’t. Between 1946 and 1964, the Baby Boom years, 76 million babies were born in the U.S. That’s a lot, but it isn’t as much as Gen Y. • Collectively, they have deep pockets: an impressive $1.5 trillion to spend every year. • They buy a fourth of all the cars currently being sold, and in ten years, they’ll buy almost 40 percent. At many dealerships, they are already spending more money than the Baby Boom generation. That’s all well and good, but there is a problem. The people in Gen Y often don’t think it is necessary to get a car, and they don’t see it as something that identifies them. Less materialistic (at this point) than their parents, they tend to see cars, insurance, and repairs as nothing more than an expense; they certainly don’t view car ownership as a necessity, or as something that defines who they are — for that, they’ve got their smart phone, right? They also like technology and social media, and they care very much about the environment. If they feel cut off from their friends while they drive, and if they think their car is hurting the environment, those are both things they don’t like. Should you find a different profession? The answer is no (un- less you don’t like selling cars). But at the same time, you will need to adapt to changing times if you want to stay in business