Hispanic Consumers: Customer Journey
When purchasing or leasing a vehicle, Hispanics find fuel efficiency, safety, value for money, reliability, and comfort the most important criteria in their decision-making process, and they consider websites, family, friends, and television commercials their top sources of information. There is no evidence that decision-making differs across vehicle types or that Hispanics in the Southeast region of the United States have their own decision-making process, but there is an indication that Hispanics in Miami are distinct from Hispanics in other markets such as San Francisco and New York due to differences in cultural background, dominant language, and country of origin.
- Twenty-nine percent of Hispanics are planning to purchase or lease a vehicle in the next 6 to 12 months.
- Eighteen percent of Hispanics are planning to purchase or lease a vehicle in the next 3 to 6 months.
- Twenty-two percent of Hispanics are planning to purchase or lease a vehicle in the next 3 months.
- Of Hispanics planning to purchase or lease a vehicle, 76% are considering a new vehicle, while 24% are considering a used vehicle. The preference for new vehicles may be explained by the tendency of Hispanics to pass vehicles down to family members.
- Of Hispanics planning to purchase or lease a vehicle, 47% are considering a sedan (e.g., Toyota Camry, Ford Fusion, Honda Accord), 47% are considering a small sports utility vehicle or SUV (e.g., Toyota RAV-4, Honda CR-V, Ford Escape), 37% are considering a compact vehicle (e.g., Toyota Corolla, Ford Focus, Honda Civic), 32% are considering a pickup truck (e.g., Toyota Tacoma, Ford F-150), and 19% of Hispanics are considering a minivan (e.g., Nissan Quest, Honda Odyssey).
- The different ethnic groups show the same level of interest in sedans, small SUVs, compact vehicles, and minivans, but when it comes to pickup trucks, Hispanics demonstrate a far stronger interest. Only 24% of whites, 22% of African Americans, and 14% of Asians are considering pickup trucks.
- When it comes to engines, 52% of Hispanics prefer gas engines, 26% of Hispanics prefer hybrid engines, 8% of Hispanics prefer electric engines, and 3% of Hispanics prefer hydrogen engines. Most Hispanics prefer gas engines for reasons related to cost and performance.
- Most Hispanics appear to be loyal to the Toyota brand, as the brand is quite popular in ethnic markets, particularly the Hispanic, Asian, and African American markets. As of April 2018, the top-selling vehicles among Hispanics were Honda Civic, Toyota Camry, Toyota Corolla, Toyota RAV-4, and Chevrolet Silverado. Their shares of the Hispanic market were 4.7%, 3.6%, 3.6%, 3.4%, and 3.1%, respectively.
- Hispanics tend to view Japanese and Korean vehicle brands as superior to American brands in terms of quality. In Miami, where there is a large concentration of Hispanics, Ford is largely ignored.
INTEREST in technology
- Compared to other ethnic groups, Hispanics exhibit a stronger interest in technologically-driven vehicle types such as hybrid vehicles, electric vehicles, plug-in hybrid vehicles, hydrogen fuel cell vehicles, and autonomous vehicles. They are 19% likely to consider an alternative fuel vehicle. Forty-eight percent of Hispanics think alternative fuel vehicles are too expensive, however.
- Forty percent of Hispanics can see themselves owning an autonomous or self-driving vehicle.
SOURCES OF INFORMATION
- When purchasing or leasing a vehicle, Hispanics look for information in websites (75%), television commercials (46%), newspaper ads (21%), magazine articles (18%), newspaper articles (17%), magazine ads (18%), radio ads (16%), and other sources (4%).
- Forty-six percent of Hispanics ask friends and family for information when purchasing or leasing a vehicle. This may be a result of the family-first culture of Hispanics.
- Compared to the general public, Hispanics have a higher propensity to comparison-shop on their mobile device while at the dealership. Forty-eight percent of Hispanics use their mobile device in-store to consult reviews and rankings.
- Compared to the general public, Hispanic vehicle buyers are 125% more inclined to use their mobile device in researching cars. They are also 39% more inclined to utilize social media in their decision-making process.
- When it comes to ads, 79% of Hispanics give more weight to ads that mirror their culture, for example, ads with Spanish-language content or ads that reflect deeply-rooted Hispanic values.
- The five attributes that Hispanics find most important when purchasing a vehicle are fuel efficiency (63%), safety (60%), value for money (51%), reliability (50%), and comfort (45%).
- Less important attributes include quality (37%), ownership cost (35%), durability (32%), technology (30%), interior space (27%), design (21%), cargo capacity (14%), ease of driving (13%), luxury (12%), and prestige (11%).
- The two features that Hispanics find most important when purchasing a vehicle are engine power (63%) and functionality (55%).
- Less important features include the navigation system (27%), the smart phone connectivity (21%), the sound system (18%), the entertainment system (10%), and the voice controls (6%).
- For Hispanics planning to purchase or lease a vehicle, top considerations include purchase price, quality, reliability, and brand reputation.
- While there is no evidence that the Hispanic consumer decision-making process differs across vehicle types, there appear to be differences among Hispanic vehicle shoppers depending on where they live.
- The Hispanic market in Miami, a city in the southeastern region of the United States, is described as fairly different from the Hispanic markets in San Francisco and New York, owing to differences in cultural backgrounds, dominant language, and country of origin. In the Southeast, particularly Florida, there appears to be an uptick in the number of Spanish-speaking clientele at dealerships. Southeastern Honda reports that the number of Spanish-speaking clients they are getting is growing.
- Of Hispanics planning to purchase or lease a vehicle in the next three years, 85% prefer to do it in person, 5% prefer to do it through a mobile application, and 4% prefer to do it online. Sixty-two percent of these Hispanics are aware of the online vehicle purchasing platform autotrader.com.
- Hispanics are inclined to be enthusiastic vehicle shoppers. They typically find negotiations enjoyable.