Hispanics: Driving Growth in US Car Sales
With $1.3 trillion in spending power, U.S. Hispanic consumers have been the center of attention in the business news lately, and nowhere can the influence of Latinos be felt more acutely than in the automotive industry. Automotive manufacturers are investing millions of dollars to reach and influence Latinos, the fastest-growing segment of the U.S. economy.
According to Hispanic Business Inc., one of every four cars sold in the US is purchased by a Hispanic consumer. CNN Money stated that “For any automaker selling cars in America, Latinos are the future.” Understanding what Hispanic consumers prefer, how they shop, and what these buyers consider when purchasing a new or used vehicle is crucial for those interested in this burgeoning segment of the marketplace.
YaSabe, the largest local search destination for US Hispanics, conducted a study to understand the preferences and habits of these consumers. We analyzed responses collected from more than 1,000 Spanish-speaking users that visited YaSabe. The user surveys were conducted both on the web and mobile versions of YaSabe.com.
The Market Opportunity
Almost 40% of respondents said that they had purchased a vehicle in the past 12 months.
68% of the respondents that had bought a vehicle, decided to purchase a used car.
26% of total respondents indicated that they are planning to purchase a vehicle in the next 24 months.
When it comes to automotive brands, loyalties run deep with Hispanic consumers. More than 65% of consumers selected one of the top four most popular auto manufacturers. The leading brands were Honda and Toyota, with 17 percent of users saying they trusted and purchased vehicles from these brands, closely followed by popular brands Ford and Chevrolet with 16% of consumers each.
What Digital Divide?
When asked about the most important factor when buying a vehicle Hispanics are continuously looking for a good offer; 55% percent of respondents said price was the most important reason they decided to buy their current car, and over half reported paying under $10k for their last car. This is a big difference when compared to the general market, who ranked “quality and dependability” the most important factor when purchasing a new vehicle, while price fell to the 11th spot of importance.
Hispanics are increasingly going online to search for products and services, and they lead the way on mobile Internet usage with over 76 percent of Latinos using their mobile devices to go online. The auto industry is no different; when Hispanics were asked how they found their current vehicle, 39%of respondents said they found it online, followed by finding a vehicle through a personal connection.
As the US Hispanic population continues to grow, addressing the segment will be a strategic imperative for all automotive manufacturers. And if manufacturers want to reach Hispanics who are in the market for a vehicle, the Internet appears to be the best place to find them.
Visit the new Autos platform from YaSabe that enables consumers to search for and discover new and used automobiles in Spanish and English. YaSabe offers services and specialized digital marketing products to automotive dealerships and private sellers that are interested to reach Hispanic consumers. YaSabe syndicates content to Hispanic media partners and to local automotive dealers that want to provide their users with a bilingual search interface. Visit YaSabe Autos to learn more.
Looking for more insights on Hispanic consumers? Visit other YaSabe Insights posts.
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