College Students To Spend Nearly $15 Billion On Cars In 2004.

Gone are the days of borrowing your roommate’s car. The annual 360 Youth College Explorer study, powered by Harris Interactive, revealed findings indicating that nearly three of every four college students (72%) aged 18 to 30 own or have access to a car for personal use. Over the past two years alone, students spent $30.9 billion* on automobiles, and one in every eight students (13%) is expected to buy a car in the next year, dispelling the image of the student in perpetual need of a ride. A significant force in the automotive market, college students are expected to buy one-and-a-half million cars this year, with projected spending totaling $14.8 billion*.

Though traditionally known as the drivers of old jalopies, most students today are not satisfied driving hand-me-downs and old clunkers. Survey results show that of all cars purchased or leased by college students in the last two years, thirty-nine percent (39%), or nearly 1.2 million cars, came from a new car dealer. Another thirty-two percent (32%), or one million vehicles, were bought from a used car dealer. Forty-nine percent (49%) of car users purchased or leased their car by themselves, and one-quarter (26%) had a car purchased or leased by a family member for their use. The survey found college students, on average, spend $9,860 on individual car purchases.

“Today’s college student needs mobility and to be connected”, said Derek White, Alloy EVP and General Manager of Media & Marketing Businesses. “We see this reflected in their purchasing habits across many categories, most notably with digital electronics and communications, but also in their increasing reliance on automobiles. Students lead complex lives that mix school, work, and entertainment, in disparate locations, and that requires flexibility and mobility.”

The 360 Youth College Explorer Study, fielded online by Harris Interactive during the Fall 2003 semester, polled 4,608 full-time and part-time college students aged 18 to 30 years. In addition to automobile spending behavior, topic areas included Sources of Income, Internet and Downloading Behavior, and spending on Dining and Entertainment. Spending on other categories such as Vacation/Travel, Personal Care Products, Over-the-Counter Medication, and Financial Services was also examined.

* Note: Figures based on Oct. 2003 College Explorer study data that is projected to overall U.S. population of 11.61 million college students aged 18-30 years old, according to the National Center for Education Statistics (NCES).

“The study findings really paint a picture of what it means to be a college student today”, said John Geraci, Vice President of Youth and Education Research, Harris Interactive. “There are many more part-timers and commuter students than a generation ago, and even residential students show an increased desire for mobility. College students want to be able to be able to go where they want, when they want.”

Students prudent when it comes to buying cars

Asked to rank key influencers in the car buying decision, over four in five students indicated that overall quality, dependability and price were “very important”. In contrast, qualities such as color (23%), style (41%) and impressiveness (11%) ranked lower. Students tended to stress functional attributes over brand, as just thirty-three percent (33%) of students felt that a specific brand or model was a “very important” criterion when it comes to buying a car.

Students leveraging the Web to research purchases

Almost half of students (45%) researched their car purchase online.

Seniors most ready to buy

As may be expected, seniors indicated the most readiness to buy in 2004 (19%).
Not surprisingly, freshman (11%), sophomores (9%) and juniors (12%) were closely ranked.

“College students have emerged as a powerful force in the car purchasing market”, said White. “Importantly, they are smart, cautious buyers, and their loyalty to nameplates is in the process of being established. Companies marketing to college students, including the car manufacturers, but also online retailers, used-car dealers and aftermarket auto services, need to be sure they have adequate resources dedicated to this influential consumer group.”

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