I'm doing a paper right now on marketing which will eventually lead me to my thesis paper but I need to get this section covered as it is a piece of my puzzle. I have come up with some ideas but please chime in.

As you guys know, the market toward young adults for new cars is huge now. The Mazda 6? mazda speed turbo, Neon SRT, Nissan Sentra, Focus SVT, Acura RSX, Suburu WRX and I know I'm missing some more. These cars are all about $20,000 and blow the doors in bang for the buck to what was offered in the past. I'm only 22 so I don't know how the market was like before 1995 toward new cars marketed toward young adults. It seems like it was nothing like year 2000+ though. Is there a reason for an upsurge in these types of cars? I have several theories but I'ld like to hear your opinion. Thanks!

 

Oh and if your near my age that would be cool to hear your theories and opinions also. Thanks!

 

It used to be all about Mustang's Camaro's and Firebirds (muscle cars in general) in the 60's, 80's and 90's (70's has the gas/emissions crunch...not many cool cars then) for speed, they were also in that same price range...its not that they have emerged out of no where, it is that they are the new breed of cool kid cars.

Just my .02

 

Back then we didn't have the $$$ to buy new cars like the younger crowd has now. Sure a few mustange 5.0's were around then but not at all like you see today. Most kids owned used cars and I mean 95% or them hence no younger croud market. Only a few desperite to look cool so I'll go out and by a plymouth lazer kids. An occasional kid that would get a 5.0 from his parents. nothing like the past 10 years of so. The late 80's and very early 90's held nothing of any real value in the sports car market anyhow. Most cars produced in that period just fell apart anyway.

 

All manufacturers want to cover all the age groups. You can get two age groups with a sporty car. The young and the young at heart, some call them mid-life crisis people who have raised their kids and now that the kids are grown they no longer have to be practical and can get a sportier car. Japans influence brought the quality and performance of the 4 cyl. up to the borderline of the V8's in horsepower, better handleing than the muscle cars, better brakes, and still can get close to 24 miles to the gallon. With both age groups you can tune and personalize the car and the limits are only to your imagination and your wallet. But if you want to finish first in every race be safe and use common sense. Have fun.

My .02

 

30yo here.

I've read that it's the companies, especially the Japanese who are seeing more and more of the baby boomers buying their cars. Of course they make the biggest part of the population now. So their average age of buyer is 46-50 or so. The second surge is coming though. The children of the baby boomers. The companies want to sell to this up and coming market as it is the future of car buyers. These new cars follow trends that have developed just like urgowind said.

 

awesome thanks guys, I'll be using some of those points in my paper. How about this idea. Hollywood influence. AKA The Fast and the Furious came out in 2000. This movie basically was a blockbuster hit making hundreds of millions. The DVD is the #1 best selling DVD of all time also. One of my theories is that this movie was an essential factor that showed car manufacturers that there this is an interest in flashy nice performance cars at a $20,000 range from young adults AKA generation Y. Only a small percentage of kids actually mods or spend money to fix up their car. But the movie showed that the generation Y population does have a demand and interest for a nice affordable new car instead of hand me downs or buying used cars. Thus this movie opened up car manufactuers eyes and we have the best bang for the buck new cars for that $20,000 price range. A car that is not on this list anymore is the civic. There was actually an article in the New York Times about this. The Acura RSX actually took the civic and the integras place. Honda has to get this segment back and it will be interesting to see what they do.
I also thought that car companies wanted to bring Brand loyalty to generation Y and by starting off young, people would continue to buy from that same company. I never linked it to the baby boomers kids though. Very nice idea!

FYI Have you also noticed that most commericals now have baby boomers in them. Thats where the market and money is now.

 

I remember looking at a few in the early '90s, such as the Eagle Talon TSi, the Honda Prelude, the old Toyota MR2, the Nissan NS 2000, Honda CRX, Ford Probe GT, last of the Pontiac Fiero GT cars, Toyota Celica GT, stuff like that.

As far as brand loyalty goes, I've never had it. I go for quality, and I continue to buy from whatever company offers it until something better comes along.

I agree with other posters that a lot of it is baby boomer money. If they aren't buying cars for themselves, they're buying for their kids.

 

I think that the "mod" scene has been going on for a while even before Fast and the Furious came out. If you look to California such things were much more common than anywhere in the country way earlier then the rest of the USA.
I am guessing that once the movie came out more regular folk started "modding" their cars. Naive example would be all those Altazza lights running loose on imports and domestics alike.

But another example is the failure of certain Japanese cars to hit their target. Honda Element is a success but it seems that the baby boomers themselves are buying it instead of their kids. I think you can look at a lot number data and do some sort of analysis comparing intended demographic targets and actual buyers that do not fit into the inteded group.

 

Don't forget trucks. The Asain makers created the 4x4s that are built on compact-car platform...aka the "Cute Utes." These came to market in the late 90's, and growth has been strong enough to where the initial models are not only growing in market share (Honda CR-V, Toyota RAV-4, Subaru Forester), they are also being copied by other manufacturers (Ford Escape), and the design is being experimented with for other youth-oriented cars (Honda Element)

These cars have been particularly popular with women. They offer the height advantage and 4x4 capabilities that resemble a traditional SUV, with driveability, ride, mileage, comfort, and price that is more like a car. Land Rover is impressed enough with the market to make high-end entry with the introduction of the Freelander.

I'm mid-30's and drive a Honda CR-V. I bought it to replace my last car, which was also a cute-ute. I like the style a lot.