Millennials and Generation Z Will Fuel 2020 Auto Sales
Younger Demographic is Stepping Into Its Own
The dawning of the third decade of the new millennium as it relates to millennials and Generation Z is significant in the auto industry because of two major factors.
Firstly, there's a lot of chatter and a flood of auto journalism currently devoted to the new technologies shaping personal transportation choices of the future, the next few years will see an explosion of these advances being applied in practical use.
Take for example the long-imagined takeover of electric vehicles. When the first hybrid hit the US roadways in 1999, the ill-fated and simply goofy looking original Honda Insight was pretty much a disaster.
Toyota moved in strong during the early 2000s with its Prius and other hybridized fleets. Despite modest overall fuel efficiency and high costs that needed to be subsidized by government tax credits up to $7,500 per vehicle, the Toyota brand has made billions in profits on a transitional format that established the brand as the carbon footprint fighter.
The Era of Electrification Is Upon Us
Even with the fast growth of electrification and successive new waves of plug-in hybrid electric vehicles offered by companies like BMW, Land Rover, and Volvo, barely 2% of the 17 million new cars sold in the US annually are electrics, with another 2% in various other combinations of gas-electric.
In fact, the fastest-growing segment of electrification is the relative passive 48 Volt formats which provide minor fuel savings but efficiently power the heavy load of electronics tech that is now standard on most new cars.
As the industry pours billions into the development of all-electric fleets, younger buyers are the only factor driving the adoption of these vehicles.
Millennial and Generation Z audiences have a vested interest in moving these innovations forward. These tech-oriented consumers are concerned about carbon emissions and their impact on the environment.
Unfortunately even the demand of the fast-emerging millennial and Generation Z car buying segment may not be strong enough to fight the political winds which have turned against high-efficiency alt-fuel vehicles.
EV Tax Credits Phase-Out
The current administration in Washington vows to scale back the tax credits that make young value-conscious buyers favored electric drivetrain vehicles affordable.
As opposed to ending eligibility for EV tax credits, a phase-out plan is devised so that as EV manufacturers reach 200,000 units sold in the US. The tax credit for the vehicle is halved to $3,750 for six months, then $1,875 for the next six months. After this time the tax credit goes to zero.
For example, effective January 1st Tesla will sell without any tax credit incentive for the first time since 2009. The Electric car manufacturer hit its 200,000 car threshold more than a year ago. Following suit with Tesla, General Motors, Ford and Nissan will phase out its EV tax credits before the end of 2020.
Youth Market Demands Gold Standard UX/UI
Secondly, the major factor changing the auto industry is related to the generational shift we are witnessing. The pop-culture meme – OK Boomer – is playing out in real life. Younger buyers move up the consumer food chain and are dictating their preferences.
With regard to the auto industry, they support the transition to electric vehicles. Additionally, they are open to autonomous solutions for certain kinds of transportation needs. Younger buyers make their own product preferences and reverse conventional wisdom in the car biz. They are counter-intuitively showing an interest in sedans as opposed to SUVs.
Most importantly millennials and Generation Z are demanding more transparency and useful information from car dealerships vying for their business. With 60 to 90% of young car buyers tethered to the internet via their smartphones, the first step in the transition of consumer power and preference is at the auto dealership website.
2020 Priorities: Mobile-First User Experience
For 321 Ignition the importance of the User Experience and User Interface (UX/UI) is the first priority. Car dealer websites must be mobile-first, first designed for mobile users, then adapted for desktop. This design approach assures the best site navigation, clean attractive graphics and intuitive functionality.
321 Ignition websites put all the information at the buyers' fingertips. Whether your future customers are searching your inventory, customizing payment schedules, reviewing vehicle history reports, or making cross-country shipping arrangements,
Making the website experience a positive one for younger buyers is critical. Dealerships stand to lose ground every day they use old-school and obsolete websites.
Millennial and Generation Z car shoppers are unforgiving. They demand a website that loads under 3 seconds. If they don't get it, they will immediately surf to a competing site with faster loading times.
Get Your Keys to the Kingdom
Customer-first obsession is key to the success of 321 Ignition auto dealership websites. Millennial and Generation Z's search for simple, straightforward information in HTML format stops with 321. Younger car buyers will flee from clunky sites loaded with widgets and graphic shortcuts.
Car dealers can no longer afford to take a siesta when it comes to prioritizing the functionality of their website. The next generation of consumers demands the 321 Ignition gold standard of technology for the ultimate car buying experience.