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Description

Description

“Encouraging Black consumers to visit a car dealership is the step that can advance the car-buying process toward purchase. Marketers need to form their message to give Black consumers a clear call to action to experience new vehicles in-person. General incentives may work, but specific messaging will also be effective on certain demographics.”

– Colin Bird, Automotive Analyst

This report answers the following questions:

  • What efforts can get Blacks to the car dealership?
  • Are Black women key decision makers?
  • Are young Blacks too tech-savvy for the traditional dealership experience?

What's included

What's included

Table of contents

Table of contents

  1. Scope and Themes

    • What you need to know
      • Definition
        • Data sources
          • Sales data
            • Consumer survey data
              • Abbreviations and terms
                • Abbreviations
                  • Terms
                  • Executive Summary

                      • Market for Black new and used vehicle buyers more than $27 billion
                        • Figure 1: Expenditures by black households on purchase of new and used vehicles, at current prices, 2008-13
                      • Certified pre-owned cars attractive option for Black car buyers
                        • Figure 2: Whether the vehicle in household is owned or leased, by race/Hispanic origin, November 2012-December 2013
                      • Most Blacks expect to take less than one month to research next purchase
                        • Figure 3: Expected time for researching and buying next vehicle, by gender, February 2014
                        • Figure 4: Price expected to pay for next vehicle from respondents who consider both total price and monthly payments to be important, by gender, February 2014
                      • Blacks looking to switch brands for financial reasons
                        • Figure 5: Top reasons for planning to switch vehicle brand, by gender, February 2014
                      • Blacks seriously considering domestics brands
                        • Figure 6: Any choice for vehicle brand seriously considering purchasing, February 2014
                      • Black car buyers rely on in-person experience
                        • Figure 7: Any important resources when shopping for next vehicle, February 2014
                      • Young Blacks more trusting of car dealers
                        • Figure 8: Attitudes toward consideration of car purchasing, by age, February 2014
                      • What we think
                      • Issues and Insights

                          • What efforts can get Blacks to the car dealership?
                            • The issues
                              • Implications
                                • Are Black women key decision makers?
                                  • The issues
                                    • Implications
                                      • Are young Blacks too tech-savvy for the traditional dealership experience?
                                        • The issues
                                          • Implications
                                          • Trend Application

                                              • Trend: Experience is All
                                                • Trend: Influentials
                                                  • Trend: Green and Lean
                                                  • Market Size and Forecast

                                                    • Key points
                                                      • Market of Black new and used vehicle buyers more than $27 billion
                                                        • Figure 9: Expenditures by black households on purchase of new and used vehicles, 2009-19
                                                      • Fan chart forecast
                                                          • Figure 10: Fan chart forecast of expenditures by black households on purchase of new and used vehicles, 2009-19, at current prices, 2009-19
                                                      • Demographic Profile of US Black Population

                                                          • Key points
                                                            • Buying power
                                                              • Figure 11: Buying power trends among Black consumers, 1990-2018 (projections)
                                                            • Black buying power is growing at a faster rate than that of White consumers
                                                              • Figure 12: Changes in buying power, by race, June 2013
                                                            • Black buying power more than $1 trillion
                                                              • Figure 13: Top 10 states ranked by share of Black buying power, 2012
                                                            • Top 10 states with highest buying power represent two thirds of buying power
                                                              • Figure 14: Top 10 states ranked by value of Black buying power, 2012
                                                            • Population statistics
                                                              • Black population growing at a faster rate than Whites
                                                                • Figure 15: Population by race and Hispanic origin, 2009-19
                                                              • Black population growth slows
                                                                • Figure 16: Asian, Black, and Hispanic populations, 1970-2020
                                                              • Children younger than 18 years old account for 27% of Black population
                                                                • Figure 17: Black population, by age, 2009-19
                                                              • Geographic concentration
                                                                • Majority of Blacks reside in South, a different marketing approach may be needed
                                                                  • Figure 18: Black geographic concentration, by region, 2010
                                                                • NY, Chicago, Philadelphia, Detroit, and Houston top Black metros
                                                                  • Figure 19: Top 10 cities with the largest number of Blacks, 2010
                                                                • Generations
                                                                  • iGeneration and Millennials represent nearly half of Black population
                                                                    • Figure 20: Population of generations, by race/Hispanic origin, 2014
                                                                    • Figure 21: Distribution of population by race and generation, 2014
                                                                  • Education
                                                                    • Majority of Blacks seek college, while others may be relying on entrepreneurship
                                                                      • Figure 22: Educational attainment of Blacks aged 25 or older, by age, 2012
                                                                    • Marital status
                                                                      • Only one third of Blacks are married, compared to 50% or more of others
                                                                        • Figure 23: Percentage of married and not married people aged 18 or older, by race and Hispanic origin, 2013
                                                                      • Blacks twice as likely never to marry, may trace back to history in America
                                                                        • Figure 24: Marital status of adults aged 18 or older, by race/Hispanic origin, 2013
                                                                        • Figure 25: Marital status of Blacks, by age, 2013
                                                                        • Figure 26: Marital status of Black adults, by gender, 2013
                                                                      • Employment
                                                                        • Black employment rate is lower than for others, rebounding slowly after recession
                                                                          • Figure 27: Labor-force participation rate of people aged 16 or older, by race and Hispanic origin, 2002-12
                                                                        • Income
                                                                          • Blacks have lower household incomes, attributed to several factors besides occupation
                                                                            • Figure 28: Median household income, by race and Hispanic origin of householder, 2012
                                                                            • Figure 29: Household income distribution by race and Hispanic origin of householder, 2012
                                                                          • Parental status
                                                                            • One third of Black households are headed by women
                                                                              • Figure 30: Households type, by race of householder, 2013
                                                                            • More Black children born to unmarried women in 2012
                                                                              • Figure 31: Fertility rate, by race and Hispanic origin of mother, 2002-12
                                                                              • Figure 32: Percent of births to unmarried mothers, by race and Hispanic origin of mother, 2002 and 2012
                                                                              • Figure 33: Black households, by presence and ages of own children, 2013
                                                                            • Home ownership
                                                                              • Four out of 10 Blacks are homeowners
                                                                                • Figure 34: Homeownership rate, by race of householder, 2001-11
                                                                            • Marketing Strategies

                                                                                • Lexus produces Verses and Flow TV show aimed at Black audiences
                                                                                  • Figure 35: Lexus, Verses and Flow screenshot, 2014
                                                                                  • Figure 36: Lexus, television ad, 2014
                                                                                • Chrysler introduces Chrysler 300 Motown Edition
                                                                                  • Figure 37: Chrysler, television ad, 2014
                                                                                • Ford sponsors 14th annual BET Awards with contest to win Mustang
                                                                                  • Figure 38: Ford, #MustangAndMe ad, 2014
                                                                              • The Black Car Buyer

                                                                                • Key points
                                                                                  • Blacks own fewer cars
                                                                                    • Figure 39: Number of vehicles owned in the household, by race/Hispanic origin, November 2012-December 2013
                                                                                  • Majority of Blacks own conventional cars
                                                                                    • Figure 40: Type of vehicle owned in household, by race/Hispanic origin, November 2012-December 2013
                                                                                  • Pick-ups owned by some more affluent Blacks
                                                                                    • Figure 41: Type of vehicle owned in household, by household income, November 2012-December 2013
                                                                                  • Certified pre-owned good option for Blacks
                                                                                    • Figure 42: Whether the vehicle in household is owned or leased, by race/Hispanic origin, November 2012-December 2013
                                                                                  • CPO vehicles used by variety of household income levels
                                                                                    • Figure 43: Whether the vehicle in household is owned or leased, by household income, November 2012-December 2013
                                                                                  • Blacks most likely to have vehicles financed for five years or more
                                                                                    • Figure 44: Length of total financing, by race/Hispanic origin, November 2012-December 2013
                                                                                  • Black car buyers less interested in Asian brands
                                                                                    • Figure 45: Future vehicle purchase: expectation of next car bought by origin, by race/Hispanic origin, November 2012-December 2013
                                                                                • Time Frame for Next Vehicle Purchase

                                                                                  • Key points
                                                                                    • One third of Blacks expect to buy car in next year
                                                                                      • Figure 46: Time frame for next vehicle purchase, by gender, February 2014
                                                                                    • Less affluent Blacks unsure of time frame for purchase
                                                                                      • Figure 47: Time frame for next vehicle purchase, by household income, February 2014
                                                                                    • Black parents expect shorter time frame for next purchase
                                                                                      • Figure 48: Time frame for next vehicle purchase, by parent with child under age 18, February 2014
                                                                                    • Blacks planning to switch brands more inclined to buy soon
                                                                                      • Figure 49: Time frame for next vehicle purchase, by planning to switch vehicle brand at next purchase, February 2014
                                                                                  • Expected Time Spent Researching and Buying Next Vehicle

                                                                                    • Key points
                                                                                      • Most Blacks expect to take less than one month to research next purchase
                                                                                        • Figure 50: Expected time for researching and buying next vehicle, by gender, February 2014
                                                                                      • One quarter of more affluent Blacks expect to research for 3-4 weeks
                                                                                        • Figure 51: Expected time for researching and buying next vehicle, by household income, February 2014
                                                                                      • Blacks expecting to switch brands taking more time to research
                                                                                        • Figure 52: Expected time for researching and buying next vehicle, by planning to switch vehicle brand at next purchase, February 2014
                                                                                    • Importance of Total Price Versus Monthly Payments

                                                                                      • Key points
                                                                                        • Monthly payment important to many Black consumers
                                                                                          • Figure 53: Importance of total price versus monthly payment when buying a vehicle February 2014
                                                                                        • More affluent Blacks more focused on total price
                                                                                          • Figure 54: Importance of total price versus monthly payment when buying a vehicle, by household income, February 2014
                                                                                        • Monthly payments more important to Blacks switching brands
                                                                                          • Figure 55: Importance of total price versus monthly payment when buying a vehicle, by planning to switch vehicle brand at next purchase, February 2014
                                                                                      • Price and Payments Expected to be Paid for Next Vehicle

                                                                                        • Key points
                                                                                          • Black respondents expect to pay $22,500 for next vehicle
                                                                                            • Figure 56: Price expected to pay for next vehicle from respondents who consider both total price and monthly payments to be important, by gender, February 2014
                                                                                          • Household income has significant impact on expected price
                                                                                            • Figure 57: Price expected to pay for next vehicle from respondents who consider both total price and monthly payments to be important, by household income, February 2014
                                                                                          • Black consumers expect to pay $288 a month for new vehicle
                                                                                            • Figure 58: Monthly payment expected to pay for next vehicle from respondents who consider both total price and monthly payments to be important, by gender, February 2014
                                                                                          • Household income has significant effect on expected payments
                                                                                            • Figure 59: Monthly payment expected to pay for next vehicle from respondents who consider both total price and monthly payments to be important, by household income, February 2014
                                                                                        • Looking to Switch Brands at Next Purchase

                                                                                          • Key points
                                                                                            • More than one third of Blacks planning to switch vehicle brand
                                                                                              • Figure 60: Planning to switch vehicle brand at next purchase, by gender, February 2014
                                                                                            • Blacks looking to switch brands for financial reasons
                                                                                              • Figure 61: Top reasons for planning to switch vehicle brand, by gender, February 2014
                                                                                            • Half of 18-34 year-old Blacks looking to switch brands
                                                                                              • Figure 62: Planning to switch vehicle brand at next purchase, by age, February 2014
                                                                                            • Multimedia systems important to young Blacks switching brands
                                                                                              • Figure 63: Top reasons for planning to switch vehicle brand, by age, February 2014
                                                                                            • More affluent Blacks more likely planning to switch brands
                                                                                              • Figure 64: Planning to switch vehicle brand at next purchase, by household income, February 2014
                                                                                            • Pricing top reason for affluent Blacks planning to switch brands
                                                                                              • Figure 65: Top reasons for planning to switch vehicle brand, by household income, February 2014
                                                                                          • Brand Choices for Considered Purchases

                                                                                            • Key points
                                                                                              • Blacks seriously considering domestics brands
                                                                                                • Figure 66: Any choice for vehicle brand seriously considering purchasing, by gender, February 2014
                                                                                              • Young Blacks considering foreign brands
                                                                                                • Figure 67: Any choice for vehicle brand seriously considering purchasing, by age, February 2014
                                                                                              • Luxury brands stand out among more affluent Blacks
                                                                                                • Figure 68: Any choice for vehicle brand seriously considering purchasing, by household income, February 2014
                                                                                            • Important Resources When Shopping for Next Vehicle

                                                                                              • Key points
                                                                                                • Blacks want in-person experience
                                                                                                  • Figure 69: Any important resources when shopping for next vehicle, by gender, February 2014
                                                                                                • Younger Blacks rely on multiple resources
                                                                                                  • Figure 70: Any important resources when shopping for next vehicle, by age, February 2014
                                                                                                • Higher income Blacks research on dealer/manufacturer sites directly
                                                                                                  • Figure 71: Any important resources when shopping for next vehicle, by household income, February 2014
                                                                                                • TV, magazines still relevant for Black parents
                                                                                                  • Figure 72: Any important resources when shopping for next vehicle, by parent with child under age 18, February 2014
                                                                                                • Blacks looking to switch brands use third-party sites
                                                                                                  • Figure 73: Any important resources when shopping for next vehicle, by planning to switch vehicle brand at next purchase, February 2014
                                                                                              • Car Purchasing Attitudes

                                                                                                • Key points
                                                                                                  • Subdued attitudes on finance, research, and dealership experience
                                                                                                      • Figure 74: Attitudes toward consideration of car purchasing, by gender, February 2014
                                                                                                    • Young Blacks more trusting of car dealers
                                                                                                      • Figure 75: Attitudes toward consideration of car purchasing, by age, February 2014
                                                                                                    • Lower income Blacks willing to cut spending in other areas to get vehicle they want
                                                                                                      • Figure 76: Attitudes toward consideration of car purchasing, by household income, February 2014
                                                                                                  • Appendix – Other Useful Consumer Tables

                                                                                                    • Time frame for next vehicle purchase
                                                                                                      • Figure 77: Time frame for next vehicle purchase, by age, February 2014
                                                                                                      • Figure 78: Time frame for next vehicle purchase, by household size, February 2014
                                                                                                    • Expected time for researching and buying next vehicle
                                                                                                      • Figure 79: Expected time for researching and buying next vehicle, by age, February 2014
                                                                                                      • Figure 80: Expected time for researching and buying next vehicle, by household size, February 2014
                                                                                                      • Figure 81: Expected time for researching and buying next vehicle, by parent with child under age 18, February 2014
                                                                                                    • Importance of total price versus monthly payment
                                                                                                      • Figure 82: Importance of total price versus monthly payment when buying a vehicle, by gender, February 2014
                                                                                                      • Figure 83: Importance of total price versus monthly payment when buying a vehicle, by parent with child under age 18, February 2014
                                                                                                      • Figure 84: Importance of total price versus monthly payment when buying a vehicle, by household size, February 2014
                                                                                                      • Figure 85: Importance of total price versus monthly payment when buying a vehicle, by age, February 2014
                                                                                                    • Price expected to pay for next vehicle
                                                                                                      • Figure 86: Price expected to pay for next vehicle, February 2014
                                                                                                      • Figure 87: Price expected to pay for next vehicle from respondents who consider both total price and monthly payments to be important, by age, February 2014
                                                                                                      • Figure 88: Monthly payment expected to pay for next vehicle from respondents who consider both total price and monthly payments to be important, by age, February 2014
                                                                                                    • Planning to switch vehicle brand at next purchase
                                                                                                      • Figure 89: Planning to switch vehicle brand at next purchase, by household size, February 2014
                                                                                                    • Vehicle brand seriously considering purchasing
                                                                                                      • Figure 90: Any choice for vehicle brand seriously considering purchasing, by household size, February 2014
                                                                                                      • Figure 91: Any choice for vehicle brand seriously considering purchasing, by parent with child under age 18, February 2014
                                                                                                      • Figure 92: Any choice for vehicle brand seriously considering purchasing, by planning to switch vehicle brand at next purchase, February 2014
                                                                                                    • Important resources when shopping for next vehicle
                                                                                                      • Figure 93: Any important resources when shopping for next vehicle, by household size, February 2014
                                                                                                    • Attitudes toward consideration of car purchasing
                                                                                                      • Figure 94: Attitudes toward consideration of car purchasing, by household size, February 2014
                                                                                                      • Figure 95: Attitudes toward consideration of car purchasing, by planning to switch vehicle brand at next purchase, February 2014
                                                                                                      • Figure 96: Attitudes toward consideration of car purchasing, by parent with child under age 18, February 2014
                                                                                                  • Appendix – Trade Associations

                                                                                                    About the report

                                                                                                    This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                    • The Consumer

                                                                                                      What They Want. Why They Want It.

                                                                                                    • The Competitors

                                                                                                      Who’s Winning. How To Stay Ahead.

                                                                                                    • The Market

                                                                                                      Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                    • The Innovations

                                                                                                      New Ideas. New Products. New Potential.

                                                                                                    • The Opportunities

                                                                                                      Where The White Space Is. How To Make It Yours.

                                                                                                    • The Trends

                                                                                                      What’s Shaping Demand – Today And Tomorrow.

                                                                                                    Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

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