MTV says its research debunks the current conventional wisdom regarding Millennials who seemingly are taking over the world.
The cable TV channel with youth-oriented programming says Millennials, ages 18 to 34, actually like cars, despite some claims to the contrary.
There is reason to suspect research done by people who know little about auto retail when that research is then repackaged and given as advice.
We know a lot of Millennials are out there, about 77 million. We know they will age, and as they do they will become more like the generations who came before them. And their children will complain about how stodgy they are.
One of the excellent points the MTV study makes is that there is a good reason Millennials tend to get their driver’s licenses later than have earlier generations. It has more to do with tougher government restrictions imposed these days.
The study indicates a Millennial with a driver’s license and access to a vehicle drives a lot. More than Baby Boomers and Gen Xers.
Many people think Millennials are brats. The MTV study alluded to this by pointing out that this generation received a trophy for just showing up.
“They want what they want when they want it,” Berj Kazanjian, MTV’s senior vice president-ad sales research, says at a press conference held at the 2015 National Automobile Dealers Assn. convention in San Francisco.
The study reveals a level of idealism on the part of Millennials, he says. “They want things to be fair. They don’t want anyone to pay more or less for the same product.”
I sat there thinking this wasn’t sounding much different than what my own parents, who were raised during the Great Depression, felt about we Boomers. Doesn’t idealism and being young go hand in hand?
The press conference Q&A lasted long after the presentation ended, and turned into a spirited discussion.
I mentioned my own survey-taking when I ask roomfuls of Millennials if they think 10% is a “fair” dealer gross profit on a new car. Their consensus is that 10% is fair. This coincides closely with TrueCar’s survey that indicates consumers think 8% is fair.
Of course, dealers typically make far less than that. But when I ask the same room if a $3,000 profit is fair (say 10% on a $30,000 vehicle), the tone changes instantly and I hear comments about car dealers being cheats and liars.
The MTV presenters thanked us for keeping them honest. Their research shows interesting results, but they need to enlist the input of people who understand automotive retail to translate what customers mean as opposed to what they say.
MTV doesn’t seem interested in selling advice to dealers on a consulting basis. It just wants to sell some advertising.
David Ruggles is an automotive consultant and former dealership general manager. He can be reached at [email protected].
