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Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Black Consumers and the Car Purchasing market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Areas explored

  • Most Black car shoppers conduct research, but not all feel prepared at the negotiating table
  • Black consumers buy cars out of want, rather than need
  • Money saved over a car’s lifetime is paramount for Black car shoppers
  • lack consumers have a set budget, some to secure financing prior to seller visit

Key consumer questions covered

  • Black Consumer Car Purchasing Segments
  • Number of Vehicles in Black Households
  • Car Purchase Timeframe
  • Type of Purchase for Next Vehicle
  • Pre-purchase Decisions among Black Consumers
  • Reasons for Car Purchase
  • Pre-purchase Online Research Sources
  • Car Research Behavior
  • Vehicle Attributes for Purchase Consideration
  • Attitudes toward Car Purchasing

What you need to know

Buying a car can be a stressful process for Black consumers, because they are singularly focused on ensuring that they negotiate the best deal that maximizes car value within their budget. Gathering as much information as possible on car attributes, performance, and most importantly price helps to alleviate concerns for most shoppers in the market. Car manufacturers and dealers who exhibit transparency in their offerings will win these consumers’ business.

Definition

Mintel defines car purchasing as the act or the intended act of buying a new, used, or certified pre-owned (CPO) vehicle. Types of vehicles referenced in this Report include the following: all cars, station wagons, sedans, pickup trucks, vans, minivans, CUVs (crossover utility vehicles), and SUVs (sport utility vehicles).

This Report builds on the analysis presented in Mintel’s Car Purchasing Process – US, May 2017, Black Consumers’ Perception of Auto Brands – US, March 2017, and Black Consumers and the Car Purchasing Process – June 2016. For additional reference, please read Mintel’s Car Purchasing Process – July 2018 and Hispanics and the Car Purchasing Process – July 2018, as well as all the titles in Mintel’s Automotive Library

Expert analysis from a specialist in the field

Written by Fiona O'Donnell, a leading analyst in the Multicultural, Lifestyles, Travel & Leisure sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Black consumers can be influenced by strategic marketing messages during the research and consideration phase of the car buying process as they seek information from multiple sources in their determination of type, make, and model to purchase. Demographics play a role in which resources are most likely to help guide them toward their choice. Fiona O'Donnell
Director - Multicultural, Lifestyles, Travel & Leisure

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What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • The issues
          • Black car buyers conscious of their image
            • Figure 1: Impact of others’ opinions on Blacks regarding car buying, by gender and age, April 2016
          • Many brands struggle to develop loyalty
            • Figure 2: Blacks’ buying reference – Brand decided versus open, by age and household income, April 2016
          • Blacks have greater appreciation for foreign cars over domestic
            • Figure 3: Attitudes toward automobiles – Foreign versus domestic, Black versus all, October 2014-December 2015
          • The opportunities
            • Black consumers buying on their own and finding the process that works for them
              • Figure 4: Black car buyers’ responsibility for purchase, by gender, April 2016
            • Opportunity for car dealers to improve trust and stand out
              • Figure 5: Blacks’ attitudes toward car dealerships, April 2016
            • Blacks like to buy cars every two or three years
              • Figure 6: Attitudes toward automobiles – Black versus all, October 2014-December 2015
            • What it means
            • The Market – What You Need to Know

              • Six in 10 Blacks planning a car purchase in the next three years
                • Black car buyers conscious of their image
                  • Opportunity to attract Black consumers in luxury segment
                    • Steady economic growth points to consumer spending on cars
                      • Blacks’ unemployment down near prerecession level
                      • Car Purchasing Prospects

                        • Six in 10 Blacks planning a car purchase in the next three years
                          • Figure 7: Vehicle purchase intent, by Black versus all, December 2015 and April 2016
                        • Younger Black men are near-term buyers
                          • Figure 8: Blacks’ vehicle purchase intent, by gender and age and parent status, April 2016
                        • Eagerness to buy increases with income
                          • Figure 9: Blacks’ vehicle purchase intent, by household income, April 2016
                        • Car buying is an individual decision for many Black consumers
                            • Figure 10: Black car buyers’ responsibility for purchase, by gender, April 2016
                          • Young Blacks buying cars on their own
                            • Figure 11: Black car buyers’ responsibility for purchase, by age, April 2016
                        • Market Perspective

                          • Black car buyers conscious of their image
                            • Figure 12: Impact of others’ opinions on Blacks regarding car buying, by gender and age, April 2016
                          • Opportunity to attract Black consumers in luxury segment
                            • Figure 13: Attitudes toward automobiles – Black versus all, October 2014-December 2015
                        • Market Factors

                          • Vehicle age at record high suggesting future opportunity
                            • Figure 14: Average age of passenger cars and light trucks, 1995-2015
                          • Auto sales bubble potentially ready to burst?
                            • Ongoing economic strength bodes well consumer spending on cars
                              • Figure 15: Disposable personal income change from previous period, January 2007-March 2016
                            • Blacks make gains in employment
                              • Figure 16: Black labor force participation and unemployment rate, January 2007-April 2016
                            • Falling gas prices alter car buying demands
                              • Figure 17: US gasoline and diesel retail prices, January 2007-April 2016
                          • Key Players – What You Need to Know

                            • Toyota leads way in advertising to Blacks
                              • Lincoln lands product placement in popular hit Empire
                                • Luxury brands struggle to develop loyalty
                                  • Consumers may soon be buying cars online
                                  • What’s Working?

                                    • Toyota leads way in advertising to Blacks
                                      • Figure 18: Toyota, “Styling Lesson,” presented by Toyota Rav4 Hybrid, television ad, 2016
                                      • Figure 19: Toyota, “Away Game with Michael Smith: Trapeze,” presented by Toyota Corolla, YouTube video, 2015
                                    • Toyota-brand Lexus takes similar approach
                                      • Figure 20: “Lexus RX and Vernon Davis in The Ultimate Crossover: Redefined Dining” video, February 2016
                                    • Lincoln lands product placement in popular hit Empire
                                      • Past Chrysler campaign demonstrates sharp focus on Black community
                                      • What’s Struggling?

                                        • Luxury brands struggle to develop loyalty
                                          • Figure 21: Blacks’ buying reference – Brand/model decided versus open, by household income, April 2016
                                      • What’s Next?

                                        • Consumers may soon be buying cars online
                                            • Figure 22: Scion online ad, 2013
                                        • The Consumer – What You Need to Know

                                          • Black consumers far more likely than the average to own just one vehicle
                                            • Younger Blacks open to any brand or model
                                              • Black women seeking word of mouth referrals
                                                • Blacks researching multiple factors online
                                                  • 18-44-year-old Black men seeking video reviews online
                                                    • Opportunity for car dealers to improve trust and stand out
                                                      • Black consumers choose vehicles with eye toward future
                                                      • Number and Type of Vehicles Owned by Household

                                                        • Most Blacks own a vehicle
                                                          • Figure 23: Vehicle ownership, by race/Hispanic origin, October 2014-December 2015
                                                        • Black consumers far more likely to own just one vehicle
                                                          • Figure 24: Number of vehicles owned/leased by household, Black versus all – Index to all, October 2014-December 2015
                                                        • Majority of Blacks own conventional cars
                                                          • Figure 25: Type of vehicle Black households own, by domestic and foreign types, October 2014-December 2015
                                                      • Plans for Purchase

                                                        • Black consumers, especially those aged 45-54, would rather buy new
                                                          • Figure 26: Blacks’ buying preference – New versus used, by age, April 2016
                                                        • Blacks planning to buy used may be disappointed
                                                          • Figure 27: Type of vehicle planning to purchase – New or used, Black versus all, October 2014-December 2015
                                                        • Younger Blacks open to any brand or model
                                                          • Figure 28: Blacks’ buying reference – Brand/model decided versus open, by age, April 2016
                                                        • Blacks less likely than whites to buy SUV, trucks, or vans
                                                          • Figure 29: Type of vehicle planning to purchase – Type, Black versus all, October 2014-December 2015
                                                        • Many Blacks unsure of whether to buy domestic or foreign
                                                          • Figure 30: Type of vehicle planning to purchase – Domestic or foreign, Black versus all, October 2014-December 2015
                                                        • Some allure to foreign cars among Black car buyers
                                                          • Figure 31: Buick Wedding Commercial starring the all-new Buick Cascada luxury convertible, March 2016
                                                          • Figure 32: Attitudes toward automobiles – Foreign versus domestic, Black versus all, October 2014-December 2015
                                                      • Research Resources

                                                        • In-person experience is key to purchasing process
                                                          • Figure 33: Blacks’ vehicle purchase research plans, April 2016
                                                        • Black men more likely to read car news and reviews
                                                          • Figure 34: Blacks’ vehicle purchase research plans – Men more likely, by gender, April 2016
                                                        • Black women respond to word of mouth
                                                          • Figure 35: Blacks’ vehicle purchase research plans – Women more likely, by gender, April 2016
                                                        • Black consumers want to know what goes on under the hood
                                                          • Figure 36: Attitudes toward automobiles – Interest in cars, Black versus all and indexed to all, October 2014-December 2015
                                                        • Research methods vary for new versus used buyers
                                                          • Figure 37: Blacks' research resources, by new versus used car most recently purchased, October 2014-December 2015
                                                      • Plans for Internet Research

                                                        • Blacks researching multiple factors online
                                                          • Figure 38: Blacks’ plans for using internet research, April 2016
                                                        • Pricing of more interest to women and older Blacks
                                                          • Figure 39: Blacks’ plans for using internet research – Price research, by gender and age, April 2016
                                                        • Younger Black women researching vehicle history
                                                          • Figure 40: Blacks’ plans for using internet research – Other research, by gender and age, April 2016
                                                        • 18-44-year-old Black men seeking video reviews online
                                                          • Figure 41: Blacks’ plans for using internet research – Read reviews, by gender and age, April 2016
                                                        • Already checking inventory, young Blacks perhaps would buy online
                                                          • Figure 42: Blacks’ plans for using internet research – Dealer, by gender and age, April 2016
                                                      • Attitudes toward Car Dealerships

                                                        • Opportunity for car dealers to improve trust and stand out
                                                          • Figure 43: Blacks’ attitudes toward car dealerships, April 2016
                                                        • Older Black women least trusting of dealers
                                                          • Figure 44: Blacks’ attitudes toward car dealerships – Select items, by gender and age, April 2016
                                                        • Young Black men willing to pay extra for better service
                                                          • Figure 45: Blacks’ attitudes toward car dealerships – Select items, by gender and age, April 2016
                                                        • More affluent Blacks willing to pay extra for service
                                                          • Figure 46: Blacks’ attitudes toward car dealerships – Select items, by household income, April 2016
                                                      • Attitudes toward Payments, Price, and Value

                                                        • Black consumers choose vehicles with eye toward future
                                                          • Figure 47: Blacks’ attitudes toward payments, price, value, April 2016
                                                        • Financial education provides opportunity to gain trust with young Blacks
                                                          • Figure 48: Blacks’ attitudes toward payments, price, value, by age, April 2016
                                                        • Fewer 18-34-year-old Blacks want a loan, but prefer dealers when they do
                                                          • Figure 49: Blacks’ buying reference – Loan versus full payment and financing, by age, April 2016
                                                        • For Blacks preferring loans, monthly payment most important
                                                          • Figure 50: Blacks’ attitudes toward payments, by preference for loan versus payment in full, April 2016
                                                      • Appendix – Data Sources and Abbreviations

                                                        • Data sources
                                                          • Consumer survey data
                                                            • Direct marketing creative
                                                              • Abbreviations and terms
                                                                • Abbreviations

                                                                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.

                                                                Description