Few consumer events involve the emotional weight of a first car purchase. For young Americans, the automobile is a symbol of adulthood, with all of the privileges it promises – freedom, independence and distance from parents. It is usually the first big-ticket acquisition for young adults, a life event that is long remembered which could affect future big ticket purchases.
For the financial institution that finances the vehicle, the first car purchase has considerable traction. If the experience is positive, it could be the start of a lifelong relationship with the consumer. If the experience is distasteful, the young consumer will go elsewhere in the future.
To address these issues, the Filene Research Institute studied the habits, opinions and behaviors of Gen Y members. In First-Time Used Car “Yers.” Tammi S. Feltham, associate professor of Human Ecology at the University of Manitoba reports research centered on 217 young adult credit union members around the U.S. ranging in age from 15 to 24 years, and their experiences buying and financing their first used car.
Comments
1
After spending considerable time in our call center (we are a Houston based CUSO involved in Indirect Lending and an extensive Car Buying Program), I can share with you that the “emotional weight” for the parents of first time car buyers can be even heavier. I can’t tell you how many parents (especially single) I have counseled that agonize even more than their teen over the purchase process. So, in essence, we are on trial with two or even three future customers.
Link to this comment