Article originally published on Orlando Business Journal
Hispanics — who spent $16.2 billion dollars on new-vehicle purchases last year — are fueling the automobile industry growth, so you need to know a few key facts to help your dealership rev up car sales.
After all, there are more than 513,000 Hispanics in Metro Orlando, and Hispanics age 18 and older spend $5 billion-plus annually in retail sales in Orlando alone, according to 2013 Arbitron Orlando DMA.
Image how many cars you could sell to Hispanics based simply on the fact that they have bigger families and more needs. However, some car dealers still think Hispanics do not have good credit or no credit at all to buy a vehicle. At time of purchase, Hispanics prefer dealer financing and are less likely to have revolving debts. Many of them opt for a large down payment.
Another important characteristic of this group is that they return to buy a new car five months sooner than anyone else. The biggest segments for this market are compacts, midsize, compact crossovers and pickups. And the top five brands for Hispanics in the new vehicle segment are: Toyota (28 percent), Honda (13 percent), Nissan (12 percent), Chevrolet (10 percent) and Ford (9 percent), according to “Dealers Reveal Secrets to Win Hispanic Market,” a report by NADA University.
Hispanic luxury car sales growth, at 18 percent, is outpacing total market growth at 12 percent. In import luxury vehicles and eco-friendly car segments, acculturation and income level play an important role. High-income Latinos are buying luxury cars at a faster rate than the general market, and those makes include Land Rover, BMW, Mercedes Benz, Ford Shelby Mustangs and Lexus.
As they become more immersed in the American way of life, Hispanics also are acquiring a taste for cars that not only are reliable and fuel-efficient, but also offer the best features and comfort.
It is important to understand that although this target group may prefer to speak English, Anglo campaigns are not the way to engage this target audience. Cultural nuances and message approach are key elements that will determine the success of a campaign.
There are different factors Hispanics have in mind when they buy a vehicle. The car has to make a statement. Image, manufacturer, exterior styling and technology are important factors. Also, the car has to fit their family’s needs, so usage plays a bigger role rather than price and style.
If you really want to race past your competition, here are some helpful tips:
- Don’t play the teacher role: Hispanics are savvy shoppers. They do their homework before they walk inside your store. They searched the Internet, compared prices, talked to friends and family. They know what they want. Make sure your bilingual personnel meet their needs and expectations in all departments of your business.
- Make a memorable experience: They have been working hard and saving for this big occasion. So the purchase of a new vehicle is a cultural experience that Hispanics tend to celebrate. The purchase of a car is a personal accomplishment, not another business deal. Don’t be surprised if they show up with their whole family, which plays an important role during the purchase of a high-ticket item. Make them feel welcome. Use bilingual signage, point of sales and brochures in Spanish. Automakers will provide them to you. Also, It would be a big help to have a kid’s area while mom and dad are making the big commitment.
- Use trust and value to truly connect: To be successful in reaching out to this growing market, you need to gain their trust and they need to see the value you provide. 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, that 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.Remember, they will be celebrating the purchase of this new vehicle with their community, so you want to make sure your dealership is top of mind.
Do not let this opportunity drive by you. Automakers and car dealers have the opportunity to gain more business and increase sales if they are willing to understand, embrace and respect the Hispanic culture. Engage with this audience the right way and you will accelerate sales today and build a loyal customer base for the future.