Hispanic Heritage Month sets aside time to underline the important contributions the Hispanic community has made to the U.S. From an automotive perspective, it’s worth noting that their contribution goes beyond cultural — it’s also economic. In 2015, Hispanics alone accounted for 35 percent of new vehicle sales growth, and it was the biggest sales year to date.
The U.S. Hispanic population has a significant economic influence — 1.38 trillion dollars to be exact. But their economic influence doesn’t stop there. The current Hispanic population rests at about 17 percent of the total U.S. population, but it’s projected to reach 31 percent by 2060. As the population grows, their economic impact, and their impact on the automotive market, will continue to grow as well.
But it’s not just a growing population that should make us take notice. Their median household income continues to grow closer in parity to the general population. This trend translates into expectation for Hispanic populations: 81 percent said they expect their family’s financial situation to improve in the next year.
Needless to say, Hispanic shoppers should be a priority for dealers. Luxury dealers specifically need to hone in on this demographic. A quarter of Hispanic vehicle intenders have a luxury vehicle in their consideration set. Since 2000, there has been a 188 percent growth in Hispanic households earning $75,000 or more. With the increased opportunity to spend, Hispanics are increasingly buying luxury vehicles – luxury vehicle purchases have risen 16 percent from 2013 to 2015, compared to 5 percent for non-Hispanics.
The Hispanic population is also unique in that the median age is 30, a full decade younger than the national age average. This means that a majority of them are also Millennials, another group with significant buying power. As a result, many of the observations about Millennials’ buying habits also apply to Hispanics. Most noticeably, the importance of a strong digital presence is key to connecting with potential customers. Hispanic Millennials are also more likely to be married, have a child and have purchased their first home, putting them in a perfect position to move on to their next significant life event — buying a car.
Dealers who want to position themselves for success in the future need to align to the preferences and habits of their Hispanic shoppers. To read more about how to reach Hispanic shoppers, check out the white paper “Hispanic Car Buyers Matter — Now More Than Ever Before.”