Lower Electric Vehicle Costs Attract Younger Shoppers

BY Rachel Cagle
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"Members of the millennial and Gen Z generations care more than past generations about climate change, but younger Americans have been slow to show that belief in one important way: electric-​car buying, reports CNBC."

"Only 10% of electric vehicle buyers are between the ages of 25 and 34, according to Cox Automotive. A big reason: price. Younger generations of Americans are struggling with student debt and wage stagnation at a time when more than 70% of electric car customers’ incomes are at least $100,000. The biggest competition has been in the affluent consumer market, where Tesla had an early lead and is now being challenged by luxury car makers including Porsche, which recently debuted its first electric car at an even higher price point than Tesla’s most expensive models."

"But with global auto manufacturers including GM, Volkswagen, Nissan and Kia coming to market with more electric car offerings, the situation is changing."

"The cost gap between electric models and gas models is beginning to shrink, according to Rachelle Petusky, the manager of research and market intelligence for Cox Automotive Mobility. And that shift is going to accelerate. 'Going to be even more so the case in the next two to three years,' she said."

"Younger demographics are becoming more aware of the economic benefits of owning electric vehicles. The Cox Automotive survey showed 65% of Gen Z consumers said that charging an EV costs less than fueling a gas car. According to the US Department of Energy, fueling an electric car costs almost half as much as a gasoline car, with a gallon of gasoline costing $2.64 on average in the U.S., and an electric eGallon costing $1.24."

'While I now have car payments, I’m also spending about $250 less per month on powering my car,' said 25-​year-​old electric car owner Brain LaClair. 'Even though I’m spending money to plug my car in at home, it is incredibly less than if I were filling up at the gas pump every week.'”

If there's one thing New Car/​Truck Shoppers love, it's a good deal. According to AudienceSCAN, these consumers' favorite types of emails include coupons/​discount codes and limited-​time offers/​sales. Within the last year, more than half of these shoppers were driven to action by email ads. Additionally, within the last month, 43.7% have used the internet to find coupons or discount codes and, within the last year, 52.3% have taken action after seeing ads on daily deal sites such as Groupon. Also within the last year, these shoppers have taken action after seeing TV commercials, receiving direct mail ads, either seeing ads on their mobile smartphone apps or receiving ads via text and finding ads in both digital and print newspapers and magazines.

AudienceSCAN data is available for your applications and dashboards through the SalesFuel API. In addition, AdMall contains industry profiles on auto dealerships (all makes) and used car dealers, as well as lead lists at the local level. Media companies, sales reps and agencies can access this data with a subscription to AdMall from SalesFuel.