Article originally published on Orlando Business Journal
There are many industries that will benefit from Hispanics, and one of the biggest will be the automotive industry.
The Hispanic American population will grow by 1,637,800 per year between 2015 and 2020, according to the executive summary report from AMDS Geoscape 2015. That’s 136,483 per month, 4,487 per day, 187 per hour. And that translates to significantly bigger sales and profits for the automotive industry.
Hispanic households are larger than non-Hispanics (3.6 vs. 2.4). It is common among their culture for many Hispanic millennials to be still living with their parents. This fact alone presents an ideal opportunity for car dealers to sell more cars to the same household and get more referrals.
According to HIS Automotive Polk market, Hispanics currently represent more than $44 billion dollars in new vehicles sales. The total industry sales increased 5.9 percent last year. But, the amount of Hispanic consumers rose 15 percent, attributing to more than 250,000 sales.
Compared to general market, Hispanics are 60 percent more likely to be buying their first new vehicle and 52 percent more likely to add an additional new vehicle to their household, according to Polk. So, we easily can say that Hispanics will fuel the growth of the automotive industry in the coming years.
Understanding the cultural differences and the purchase process will be crucial for car dealers to assure a steady growth and success with the Hispanic market.
For Hispanics, buying a car is an event — a sign of achievement they are proud to celebrate. How they are going to be treated when they walk inside a dealership is very important to them. Be prepared to accommodate a family group with kids.
Based on Univision M.A.S., “More Auto Sales” focus group, the car has to fulfill their family needs. It is a group decision, not an individual one. They also value the relationship with the dealers compared to non-Hispanics who tend to minimize that relationship.
The average age of Hispanics today is 30, compared to 42 for non-Hispanics. This translates to 12 potential years of additional car buying life for the average Hispanics.
The perception that Hispanics seek entry-level cars and that they can’t afford a luxury brand vehicle is becoming outdated. Last year, 24 percent of the U.S. Hispanic population had a household income of $75,000-plus. Because of that, brands like Lexus and Audi have stepped up Spanish-language marketing.
If you really want to rev up your sales, here are four helpful tips:
- Create a memorable experience: Make them feel welcome the minute they walk inside your store. From bilingual signage to bilingual sales team members, make their car purchase as easy and friendly as possible. Train your staff. Selling a car to Hispanics is different compared to the general market.
- Don’t play the teacher role: Hispanics are savvy shoppers. They do their homework before they are ready to buy a car. They searched the Internet, compared prices, talked to friends and family. They know what they want and need. After the sale, always remember to ask for a referral. If you did your job right, you will get a reliable referral.
- Use trust and value to truly connect: You can’t afford for things to get lost in translation. There is still a misconception among car dealers that since many Hispanics speak English, there is no need to communicate with them in Spanish. The truth is, even if they speak English, Spanish is the way you connect far more effectively with them. It is the language many feel more comfortable with, especially when negotiating a big-ticket item.
- Become culturally relevant: Hispanic marketing is becoming a key component for the automotive industry. There are big differences between reaching and connecting. From traditional advertising, digital, direct mail and social media efforts, your messages have to be culturally relevant and speak to their needs. Find the right Hispanic ad agency or consultant who can help you engage with them more effectively and efficiently.
Do not let this opportunity drive by you. Engage with this audience the right way and you will accelerate sales today and build a loyal customer base for the future.