Older Drivers Most Likely to Buy a New Car: Study

Older Drivers Most Likely to Buy a New Car: Study

According to a new study, the 55-to-64-year-old age group is most likely to purchase a new car.

The oldest of the baby boomers have surpassed the 35-to-44-year-old age group, which were most likely to buy a new car four years ago. Automakers may also want to take notice, considering many are spending their advertising dollars targeting the Gen Y demographic and could yield a better return on investment with the older age group.

According to Michael Sivak, author of the study by the University of Michigan’s Transportation Research Institute, “You shouldn’t be chasing the younger people, you should be looking at the older people,” Sivak said. “Baby boomers are trying to extend their youth as long as they can, both in terms of taking care of their bodies and in their expenditures.”

Also in the study, 79 percent of people between the ages of 20 through 24 had a driver’s license in 2011, as opposed to 92 percent in 1983, demonstrating that younger people these days just aren’t as interested in driving. The opposite is occurring with older drivers, with 93 percent of those age 60 to 64 carrying a driver’s license in 2011, versus 84 percent in 1983.

This year, Ford has sold 23 percent of its vehicles to the 55- to 64-year-old age group, outpacing the total auto industry which averages 22.2 percent.

[Source: Automotive News]