College Students to Spend Nearly $15 Billion on Cars in 2004m - And They Are TACH Viewers
360 Youth College Explorer Survey Reports 1.5 Million Students Will Buy Vehicles This Year
ROCHESTER, N.Y., May 13 -- Gone are the days of borrowing your roommate's car. The annual 360 Youth College Explorer study, powered by Harris Interactive(R), today 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."
Methodology
This study was conducted online within the United States in October 2003, among a nationwide cross section of 4,608 college students, aged 18-30 years. The entire spectrum of college students was represented from full-time to part-time students, as well as 2-year, 4-year and advanced degree candidates. Figures for age, sex, race, school status, type of degree, and region were weighted where necessary to bring them into line with their actual proportions in the U.S. college population.
In theory, with a probability sample of this size, one can say with 95 percent certainty that the results have a statistical precision of plus or minus two percentage points of what they would be if the entire U.S. college population had been polled with complete accuracy. Unfortunately, there are several other possible sources of error in all polls or surveys that are probably more serious than theoretical calculations of sampling error. They include refusals to be interviewed (non-response), question wording and question order, interviewer bias, weighting by demographic control data and screening. It is impossible to quantify the errors that may result from these factors. This online sample was not a probability sample.
About 360 Youth
360 Youth is the media and marketing arm of Alloy, Inc. . As part of Alloy's Media & Marketing Division, 360 Youth integrates the assets and experience of the largest and strongest college and teen marketing companies including CASS Communications, Alloy, Y-Access, Market Place Media (All Campus Media & Armed Forces Communications), YouthStream and others to provide sales and marketing solutions targeting young adults. 360 Youth enables Fortune 500 companies to reach more than 25 million Generation Y consumers each month through a comprehensive mix of media and proprietary school based programs using a wide range of media assets. For more information on 360 Youth, an Alloy Inc. company, please visit www.360youth.com. For more information on Alloy, Inc., please visit www.alloyinc.com.
About Harris Interactive(R)
Harris Interactive (www.harrisinteractive.com) is a worldwide market research and consulting firm best known for The Harris Poll(R), and for pioneering the Internet method to conduct scientifically accurate market research. Headquartered in Rochester, New York, Harris Interactive combines proprietary methodologies and technology with expertise in predictive, custom and strategic research. The Company conducts international research from its U.S. offices and through wholly owned subsidiaries-London-based HI Europe (www.hieurope.com), Paris-based Novatris and Tokyo-based Harris Interactive Japan-as well as through the Harris Interactive Global Network of independent market- and opinion-research firms.
To become a member of the Harris Poll Online(SM) and be invited to participate in future online surveys, visit www.harrispollonline.com.
Press Contacts: Nancy Wong Harris Interactive 585-214-7316 nwong@harrisinteractive.com Jodi Smith 360 Youth, an Alloy, Inc. Co. 212-329-8359 jodis@alloy.com
