Car companies are consumed by the chase for the 18-35 customer – yet these millennials account for just one in five new-vehicle purchases, according to Maritz Research.
But what millennial buyers lack in the number of purchases, they make up in other ways – ways that are teaching the old car business new tricks, notes Maritz vice-president Chris Travell.
"I would also suggest that the biggest impact from a car buying standpoint is in the technology that millennials are using to research and buy a car," says Travell. "Using mobile devices while at the dealership to compare options, features, and pricing across competitive brands is now commonplace and this has been chiefly driven by millennials."
But he adds, "…it's still older folks who account for the greatest volume of car buying in Canada. They've got the money."
And that's why some of the richest discounts are available on vehicles most in demand by Generation X, the 36 to 55-year-old buyers who account for 41.3 per cent of the market, and baby boomers (56 and older, who cover 36.73 per cent of new vehicle buyers).
The Lexus GS 350? A boomer car with a $5,000 factory discount. The Chevrolet Traverse SUV, with so much appeal for family-age buyers, has as much as $4,000 available in factory sales sweeteners.
That said, Hyundai has an $1,800 factory discount on the Tucson, which should be as attractive to a Gen Xer as a millennial, while the Kia Forte compact sedan with its $2,000 in available discounts has perhaps the most obvious appeal to the millennial buyer.
So many of the richest deals are on models aimed at buyers who comprise some 78 per cent of the market. That makes sense. But the savvy young shopper will also find deals on more affordable models. And they're likely to find them using the electronic tools, the use of which has become second nature. All buyers are sure to follow that trend, sooner, not later.
Deals of the Week consulted with www.unhaggle.com, www.carcostcanada.com, and other sources on these offers. As usual, pricing information here is subject to change and dealer discounts vary, so consult your dealer for all the final details, including expiry dates for all offers.
2013 Lexus GS 350 4 door sedan RW
- MSRP: $51,900
- Freight, dealer prep, air conditioning tax: $2,095
- Dealer discount (estimated): $2,300
- Taxable subtotal: $51,695
- Total price with 13% HST: $58,415.35
- Factory discount: $5,000 (combined manufacturer incentives)
- Final price: 53,415.35
- 2.90% financing for 48 months available with $2,000 factory incentive
2014 Chevrolet Traverse AWD 4 door LS
- MSRP: $36,295
- Freight, dealer prep and air conditioning tax: $1,700
- Dealer discount (estimated): $1,200
- Factory discount: $3,000 (GM Stackable Cash Delivery Allowance factory-to-dealer rebate)
- Taxable subtotal: $33,795
- Total price with 13% HST: $38,188.35
- Factory discount: $1,000 (GM Targeted Owner Loyalty/Conquest Program factory-to-consumer rebate)
- Cash incentive available with 4.99% financing for up to 84 months
- Final price: $37,188.35
2014 Hyundai Tucson AWD 4 door Auto Limited
- MSRP: $33,599
- Freight, dealer prep, AC tax: $1,860
- Dealer discount (estimated): $1,500
- Factory discount: $1,800 (Hyundai Dealer Cash factory-to-dealer incentive)
- Taxable subtotal: $32,159
- Total price with 13% HST: $36,339.67
- 0.99% financing for 48 months available not available with incentives
2014 Kia Forte 4 door Sedan Auto SE
- MSRP: $21,395
- Freight, PDI, AC tax: $1,715
- Dealer discount (estimated): $1,100
- Factory discount: $2,000 (Kia Prime Rate Credit factory-to-dealer rebate)
- Taxable subtotal: $20,010
- Total price with 13% HST: $22,611
- 0.00% financing for up to 84 months 48 months available but not with cash incentives. Selected cash incentives available with 3.5% financing
Pricing information source: www.unhaggle.com and www.carcostcanada.com. Calculations based on Ontario customers. Please note that while the information above is accurate at the time of publication, incentives are given at the discretion of individual dealers, and may be changed or discontinued at any time. Where noted, "dealer discounts" are negotiated with the customer on a case-by-case basis. Unhaggle Savings are actual discounts received by Unhaggle customers.
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