And why it MAtters

© 2013 AutoTrader.com Inc., All Rights Reserved. “AutoTrader,” “AutoTrader Classics,” “AutoTraderClassics.com,” and the AutoTrader Classics logo are trademarks or registered trademarks of TPI Holdings Inc., all used under exclusive license.

whAt you need to know About

MillenniAls AutoTrader.com conducted an analysis of Millennial car shoppers and car buyers to help us better understand this generation and their attitudes toward car shopping. The analysis, “Millennials and the Automotive Industry,” is comprised of data from our own proprietary research studies from 2011 to 2012, as well as information from various syndicated sources. The information included here reflects key initial findings in what will be an ongoing series of studies and analyses of this very large demographic whose impact on the automotive industry will be as significant as the Baby Boomer generation.

About this study

the Most-diverse, educAted, sociAlly conscious And tech-sAvvy generAtion

For 50 years now, the Boomer generation has driven the evolution and meaning of cars as we know them today. Now, their Millennial children are coming of age and they will have the same kind of impact on the car industry as their parents. Despite that their sheer numbers are similar to Boomers, that’s where the similarity ends. The Millennials are the most diverse, most educated, most socially conscious and most tech-savvy group living on the planet today. More than half, for example, have at least some college education (vs. Boomers at 36%).1 By 2030, their buying power will exceed all other consumer groups combined.2 Even more significantly, though, is the way they communicate, shop and buy, which is radically different from their parents and is universally tied to technology. Indeed, technology use, more than any other characteristic, is the defining characteristic of this generation.1

94% own a mobile phone1

connected 24/7

41% have a cell phone and no land line1

83% sleep with a cell phone1

Average 88 text messages a day3

Born between 1980–2000 (75 million)4

who they Are

46% of the workforce by 20205

Annual income by 2017 (trillions): $3.4 vs. Boomers $2.86

1Source: Pew 2010; 2Source: Visa.; 3 Source: Pew 2011; 4 Source: Population Reference Bureau; 5Source: Lynch 2008; 6Source: Javelin Strategy & Research; 7Source: BCG Perspectives, April 2012

75% use social networking sites

social networking fanatics1

55% visit social networking sites daily

20% post a video of themselves online

Expect speedy, efficient transactionsAttitudes & behaviors7

Trust peers more than subject matter experts

Very social — online and offline

Believe they can make the world a better place

BR-M

LNLS

Millennials_3panel_Brochure_FINAL_02-05-2013.indd 2 2/5/13 11:53 AM

And why it MAtters

© 2013 AutoTrader.com Inc., All Rights Reserved. “AutoTrader,” “AutoTrader Classics,” “AutoTraderClassics.com,” and the AutoTrader Classics logo are trademarks or registered trademarks of TPI Holdings Inc., all used under exclusive license.

whAt you need to know About

MillenniAls AutoTrader.com conducted an analysis of Millennial car shoppers and car buyers to help us better understand this generation and their attitudes toward car shopping. The analysis, “Millennials and the Automotive Industry,” is comprised of data from our own proprietary research studies from 2011 to 2012, as well as information from various syndicated sources. The information included here reflects key initial findings in what will be an ongoing series of studies and analyses of this very large demographic whose impact on the automotive industry will be as significant as the Baby Boomer generation.

About this study

the Most-diverse, educAted, sociAlly conscious And tech-sAvvy generAtion

For 50 years now, the Boomer generation has driven the evolution and meaning of cars as we know them today. Now, their Millennial children are coming of age and they will have the same kind of impact on the car industry as their parents. Despite that their sheer numbers are similar to Boomers, that’s where the similarity ends. The Millennials are the most diverse, most educated, most socially conscious and most tech-savvy group living on the planet today. More than half, for example, have at least some college education (vs. Boomers at 36%).1 By 2030, their buying power will exceed all other consumer groups combined.2 Even more significantly, though, is the way they communicate, shop and buy, which is radically different from their parents and is universally tied to technology. Indeed, technology use, more than any other characteristic, is the defining characteristic of this generation.1

94% own a mobile phone1

connected 24/7

41% have a cell phone and no land line1

83% sleep with a cell phone1

Average 88 text messages a day3

Born between 1980–2000 (75 million)4

who they Are

46% of the workforce by 20205

Annual income by 2017 (trillions): $3.4 vs. Boomers $2.86

1Source: Pew 2010; 2Source: Visa.; 3 Source: Pew 2011; 4 Source: Population Reference Bureau; 5Source: Lynch 2008; 6Source: Javelin Strategy & Research; 7Source: BCG Perspectives, April 2012

75% use social networking sites

social networking fanatics1

55% visit social networking sites daily

20% post a video of themselves online

Expect speedy, efficient transactionsAttitudes & behaviors7

Trust peers more than subject matter experts

Very social — online and offline

Believe they can make the world a better place

BR-M

LNLS

Millennials_3panel_Brochure_FINAL_02-05-2013.indd 2 2/5/13 11:53 AM

AffordAbility is the top concern for MillenniAls who Are considering both new & used cArs

Affordability is the top concern of Millennial car shoppers.1 In fact, this generation is more likely to say that personal debt impacts their ability to purchase a vehicle more so than their older counterparts, likely because they may be carrying a lot of college debt.

As a result, 40% are shopping for a car under $20,000.1 They are more likely to consider a used car than older drivers, although 53% would prefer a new car if they could afford it.1

Although 83% of Millennials actually admit to sleeping with their mobile device,2 they use any technology in their arsenal to do research on make/model, price, dealer selection and lender selection, in addition to checking in with their social network.

Typically, they do their initial research on a laptop, and then hit the road with their mobile device.

Most car shoppers are concerned with cost of ownership, but it’s especially true for Millennials. They look more closely at the lifetime cost of a vehicle than older shoppers. Cost is also the top concern when selecting where to service their vehicle. As a result, only about a third are likely to service their car at the dealership where they made their purchase, compared to half of older shoppers.1

Additionally, Millennials tend to be more value-conscious and pride themselves on using technology to find all the information they need, but 56% report frustration with finding the best deal.1

1Source: 2012 AutoTrader.com Audience Segmentation Study

MillenniAls spend 25% More tiMe on reseArch & Are More likely to seek input froM their sociAl network

Because Millennials are younger and have less experience and knowledge about car shopping than older generations, they compensate by doing a good deal of research — plus it’s in their technology-oriented DNA: They spend 20 hours researching vehicles,1 visit more automotive websites and look at more photo galleries and videos.2

Additionally, 23% are likely to use their social network as a resource during the shopping process.3

MillenniAls use their Mobile devices for the entire cAr shopping process

68% Can’t afford New

50% New loses value

49% Prefer nicer Used for price

43% Insurance more affordable

31% Don’t have down payment

24% No credit or bad credit

reasons for considering used over new1 time spent researching1

38% of MillenniAls Are sAtisfied with their deAlership experience

dealership satisfaction4There are many opportunities to start building relationships with Millennials to overcome any negative perceptions. Start by working on their hot-button issues: transparency, trust and respect, and avoiding trying to sell a car or service they don’t want.4

Nothing matters more to Millennials than authenticity, integrity and an ability to deliver them. Yet, they are open to new experiences and brands, and are interested in building relationships with them.5

what you can do:

• Merchandise new- and used cars with actual photos, video and descriptive comments• Avoid a sales pitch; instead, be a consultant who’s armed with answers• Be prepared to engage with them on their terms — text, email, chat — let them choose• Monitor your reputation — they’re checking you out everywhere

1Source: 2011 Polk Automotive Buyer Study; 2Source: 2012 J.D. Power and Associates New Autoshopper Study; 3Source: 2012 AutoTrader.com Audience Segmentation Study; 4 Source: 2012 Morpace/AutoTrader.com Dealership Experience Study; 5Source: Edelman “The 8095 Exchange,” 2010

Millennials use their mobile device 2.5 times more often than non-Millennials while shopping for a car, and use it to do everything from looking up car listings to finding pricing to reading consumer ratings and reviews.2

They want instant gratification, and put a premium on simplicity, ease, efficiency and convenience in all their transactions. Moving them through the transaction is important in developing and maintaining a relationship with them.3

51% Car pricing information

49% Find classified listings

41% Read ratings and reviews

Top Mobile Activities2

what you can do:

• Ensure that your virtual dealership is open 24/7• Understand that the variety of devices is going to increase exponentially and that Millennials will be using all of them• Don’t worry about customizing your website and car listings for every device. Instead, focus on robust content and merchandising.

1Source: 2012 J.D. Power and Associates New Autoshopper Study; 2Source: 2012 AutoTrader.com Audience Segmentation Study; 3Source: BCG Perspectives, April 2012

20hours

16hours

MILLENNIALS

NON-MILLENNIALS

38%

49%

MILLENNIALS

NON-MILLENNIALS

what you can do:

• Stock the right cars at the right price • Ensure consistent, competitive pricing online and offline• Post your service rates online• Boost your CPO program• Promote your inventory and service specials online and offline • Provide information about total cost of ownership from third-party sources

47% Find local dealers

44% Look up vehicle specifications

71% fActor in cost of ownership before buying A cAr1

50% of MillenniAls use Multiple devices to shop for A cAr1

2

Millennials_3panel_Brochure_FINAL_02-05-2013.indd 1 2/5/13 11:53 AM

AffordAbility is the top concern for MillenniAls who Are considering both new & used cArs

Affordability is the top concern of Millennial car shoppers.1 In fact, this generation is more likely to say that personal debt impacts their ability to purchase a vehicle more so than their older counterparts, likely because they may be carrying a lot of college debt.

As a result, 40% are shopping for a car under $20,000.1 They are more likely to consider a used car than older drivers, although 53% would prefer a new car if they could afford it.1

Although 83% of Millennials actually admit to sleeping with their mobile device,2 they use any technology in their arsenal to do research on make/model, price, dealer selection and lender selection, in addition to checking in with their social network.

Typically, they do their initial research on a laptop, and then hit the road with their mobile device.

Most car shoppers are concerned with cost of ownership, but it’s especially true for Millennials. They look more closely at the lifetime cost of a vehicle than older shoppers. Cost is also the top concern when selecting where to service their vehicle. As a result, only about a third are likely to service their car at the dealership where they made their purchase, compared to half of older shoppers.1

Additionally, Millennials tend to be more value-conscious and pride themselves on using technology to find all the information they need, but 56% report frustration with finding the best deal.1

1Source: 2012 AutoTrader.com Audience Segmentation Study

MillenniAls spend 25% More tiMe on reseArch & Are More likely to seek input froM their sociAl network

Because Millennials are younger and have less experience and knowledge about car shopping than older generations, they compensate by doing a good deal of research — plus it’s in their technology-oriented DNA: They spend 20 hours researching vehicles,1 visit more automotive websites and look at more photo galleries and videos.2

Additionally, 23% are likely to use their social network as a resource during the shopping process.3

MillenniAls use their Mobile devices for the entire cAr shopping process

68% Can’t afford New

50% New loses value

49% Prefer nicer Used for price

43% Insurance more affordable

31% Don’t have down payment

24% No credit or bad credit

reasons for considering used over new1 time spent researching1

38% of MillenniAls Are sAtisfied with their deAlership experience

dealership satisfaction4There are many opportunities to start building relationships with Millennials to overcome any negative perceptions. Start by working on their hot-button issues: transparency, trust and respect, and avoiding trying to sell a car or service they don’t want.4

Nothing matters more to Millennials than authenticity, integrity and an ability to deliver them. Yet, they are open to new experiences and brands, and are interested in building relationships with them.5

what you can do:

• Merchandise new- and used cars with actual photos, video and descriptive comments• Avoid a sales pitch; instead, be a consultant who’s armed with answers• Be prepared to engage with them on their terms — text, email, chat — let them choose• Monitor your reputation — they’re checking you out everywhere

1Source: 2011 Polk Automotive Buyer Study; 2Source: 2012 J.D. Power and Associates New Autoshopper Study; 3Source: 2012 AutoTrader.com Audience Segmentation Study; 4 Source: 2012 Morpace/AutoTrader.com Dealership Experience Study; 5Source: Edelman “The 8095 Exchange,” 2010

Millennials use their mobile device 2.5 times more often than non-Millennials while shopping for a car, and use it to do everything from looking up car listings to finding pricing to reading consumer ratings and reviews.2

They want instant gratification, and put a premium on simplicity, ease, efficiency and convenience in all their transactions. Moving them through the transaction is important in developing and maintaining a relationship with them.3

51% Car pricing information

49% Find classified listings

41% Read ratings and reviews

Top Mobile Activities2

what you can do:

• Ensure that your virtual dealership is open 24/7• Understand that the variety of devices is going to increase exponentially and that Millennials will be using all of them• Don’t worry about customizing your website and car listings for every device. Instead, focus on robust content and merchandising.

1Source: 2012 J.D. Power and Associates New Autoshopper Study; 2Source: 2012 AutoTrader.com Audience Segmentation Study; 3Source: BCG Perspectives, April 2012

20hours

16hours

MILLENNIALS

NON-MILLENNIALS

38%

49%

MILLENNIALS

NON-MILLENNIALS

what you can do:

• Stock the right cars at the right price • Ensure consistent, competitive pricing online and offline• Post your service rates online• Boost your CPO program• Promote your inventory and service specials online and offline • Provide information about total cost of ownership from third-party sources

47% Find local dealers

44% Look up vehicle specifications

71% fActor in cost of ownership before buying A cAr1

50% of MillenniAls use Multiple devices to shop for A cAr1

2

Millennials_3panel_Brochure_FINAL_02-05-2013.indd 1 2/5/13 11:53 AM

AffordAbility is the top concern for MillenniAls who Are considering both new & used cArs

Affordability is the top concern of Millennial car shoppers.1 In fact, this generation is more likely to say that personal debt impacts their ability to purchase a vehicle more so than their older counterparts, likely because they may be carrying a lot of college debt.

As a result, 40% are shopping for a car under $20,000.1 They are more likely to consider a used car than older drivers, although 53% would prefer a new car if they could afford it.1

Although 83% of Millennials actually admit to sleeping with their mobile device,2 they use any technology in their arsenal to do research on make/model, price, dealer selection and lender selection, in addition to checking in with their social network.

Typically, they do their initial research on a laptop, and then hit the road with their mobile device.

Most car shoppers are concerned with cost of ownership, but it’s especially true for Millennials. They look more closely at the lifetime cost of a vehicle than older shoppers. Cost is also the top concern when selecting where to service their vehicle. As a result, only about a third are likely to service their car at the dealership where they made their purchase, compared to half of older shoppers.1

Additionally, Millennials tend to be more value-conscious and pride themselves on using technology to find all the information they need, but 56% report frustration with finding the best deal.1

1Source: 2012 AutoTrader.com Audience Segmentation Study

MillenniAls spend 25% More tiMe on reseArch & Are More likely to seek input froM their sociAl network

Because Millennials are younger and have less experience and knowledge about car shopping than older generations, they compensate by doing a good deal of research — plus it’s in their technology-oriented DNA: They spend 20 hours researching vehicles,1 visit more automotive websites and look at more photo galleries and videos.2

Additionally, 23% are likely to use their social network as a resource during the shopping process.3

MillenniAls use their Mobile devices for the entire cAr shopping process

68% Can’t afford New

50% New loses value

49% Prefer nicer Used for price

43% Insurance more affordable

31% Don’t have down payment

24% No credit or bad credit

reasons for considering used over new1 time spent researching1

38% of MillenniAls Are sAtisfied with their deAlership experience

dealership satisfaction4There are many opportunities to start building relationships with Millennials to overcome any negative perceptions. Start by working on their hot-button issues: transparency, trust and respect, and avoiding trying to sell a car or service they don’t want.4

Nothing matters more to Millennials than authenticity, integrity and an ability to deliver them. Yet, they are open to new experiences and brands, and are interested in building relationships with them.5

what you can do:

• Merchandise new- and used cars with actual photos, video and descriptive comments• Avoid a sales pitch; instead, be a consultant who’s armed with answers• Be prepared to engage with them on their terms — text, email, chat — let them choose• Monitor your reputation — they’re checking you out everywhere

1Source: 2011 Polk Automotive Buyer Study; 2Source: 2012 J.D. Power and Associates New Autoshopper Study; 3Source: 2012 AutoTrader.com Audience Segmentation Study; 4 Source: 2012 Morpace/AutoTrader.com Dealership Experience Study; 5Source: Edelman “The 8095 Exchange,” 2010

Millennials use their mobile device 2.5 times more often than non-Millennials while shopping for a car, and use it to do everything from looking up car listings to finding pricing to reading consumer ratings and reviews.2

They want instant gratification, and put a premium on simplicity, ease, efficiency and convenience in all their transactions. Moving them through the transaction is important in developing and maintaining a relationship with them.3

51% Car pricing information

49% Find classified listings

41% Read ratings and reviews

Top Mobile Activities2

what you can do:

• Ensure that your virtual dealership is open 24/7• Understand that the variety of devices is going to increase exponentially and that Millennials will be using all of them• Don’t worry about customizing your website and car listings for every device. Instead, focus on robust content and merchandising.

1Source: 2012 J.D. Power and Associates New Autoshopper Study; 2Source: 2012 AutoTrader.com Audience Segmentation Study; 3Source: BCG Perspectives, April 2012

20hours

16hours

MILLENNIALS

NON-MILLENNIALS

38%

49%

MILLENNIALS

NON-MILLENNIALS

what you can do:

• Stock the right cars at the right price • Ensure consistent, competitive pricing online and offline• Post your service rates online• Boost your CPO program• Promote your inventory and service specials online and offline • Provide information about total cost of ownership from third-party sources

47% Find local dealers

44% Look up vehicle specifications

71% fActor in cost of ownership before buying A cAr1

50% of MillenniAls use Multiple devices to shop for A cAr1

2

Millennials_3panel_Brochure_FINAL_02-05-2013.indd 1 2/5/13 11:53 AM

And why it MAtters

© 2013 AutoTrader.com Inc., All Rights Reserved. “AutoTrader,” “AutoTrader Classics,” “AutoTraderClassics.com,” and the AutoTrader Classics logo are trademarks or registered trademarks of TPI Holdings Inc., all used under exclusive license.

whAt you need to know About

MillenniAls AutoTrader.com conducted an analysis of Millennial car shoppers and car buyers to help us better understand this generation and their attitudes toward car shopping. The analysis, “Millennials and the Automotive Industry,” is comprised of data from our own proprietary research studies from 2011 to 2012, as well as information from various syndicated sources. The information included here reflects key initial findings in what will be an ongoing series of studies and analyses of this very large demographic whose impact on the automotive industry will be as significant as the Baby Boomer generation.

About this study

the Most-diverse, educAted, sociAlly conscious And tech-sAvvy generAtion

For 50 years now, the Boomer generation has driven the evolution and meaning of cars as we know them today. Now, their Millennial children are coming of age and they will have the same kind of impact on the car industry as their parents. Despite that their sheer numbers are similar to Boomers, that’s where the similarity ends. The Millennials are the most diverse, most educated, most socially conscious and most tech-savvy group living on the planet today. More than half, for example, have at least some college education (vs. Boomers at 36%).1 By 2030, their buying power will exceed all other consumer groups combined.2 Even more significantly, though, is the way they communicate, shop and buy, which is radically different from their parents and is universally tied to technology. Indeed, technology use, more than any other characteristic, is the defining characteristic of this generation.1

94% own a mobile phone1

connected 24/7

41% have a cell phone and no land line1

83% sleep with a cell phone1

Average 88 text messages a day3

Born between 1980–2000 (75 million)4

who they Are

46% of the workforce by 20205

Annual income by 2017 (trillions): $3.4 vs. Boomers $2.86

1Source: Pew 2010; 2Source: Visa.; 3 Source: Pew 2011; 4 Source: Population Reference Bureau; 5Source: Lynch 2008; 6Source: Javelin Strategy & Research; 7Source: BCG Perspectives, April 2012

75% use social networking sites

social networking fanatics1

55% visit social networking sites daily

20% post a video of themselves online

Expect speedy, efficient transactionsAttitudes & behaviors7

Trust peers more than subject matter experts

Very social — online and offline

Believe they can make the world a better place

BR-M

LNLS

Millennials_3panel_Brochure_FINAL_02-05-2013.indd 2 2/5/13 11:53 AM