By Alex Perdikis

If the thought of thinking about statistics and demographics bores you, you aren’t alone. But, sometimes the fascinating stories behind demographics are worth a read. That’s how it is with car buying trends. Who buys which types of vehicles and why is often a look into America’s culture.

For Now, It’s the Boomers

In the United States, baby boomers account for 62 percent of new car purchases. Baby boomers take up a large part of the population and typically have more income and resources available to purchase a new car.

But, car trend experts say that millennials, those born between 1980 and 1994, will soon catch up to baby boomers, percentage-wise. That’s a surprise because millennials have a reputation for not wanting to commit to large ticket purchases. Clearly, as millennials get older, their priorities change.

People of a Certain Age

Another surprising trend is that according to research published by the Federal Reserve, the average age of a new car or truck buyer is now 53 years old. The 55 and older crowd increased their new vehicle purchasing by 15 percentage points over the last 20 years.

Several reasons for the increase in new vehicle purchases for the 55+ age group come into play. Americans live longer and healthier lives. The 55 and older age group work longer than previous generations. And, many have greater income stability than before.

Who Buys What?

More surprises appear when it comes to which age group buys what type of vehicle. A lot of so-called experts report that sedans are not popular with buyers. However, sedans are the top choice for those in the 25 to 54 age group.

What about SUVs?

 

“It turns out that SUVs are less popular than sedans in the 25 to 54 age range. Those who purchase new SUVs trend a bit older and they’re the top choice for those who are 65 and older.” — Alex Perdikis

 

Those in the 25 to 54 demographic love their pickup trucks, though. They make up 50 percent of purchases with the 55 to 64 demographic and 65 and older group splitting the rest.

You’re probably thinking, “What about the younger crowd?” Well, they don’t buy many new vehicles. The 24 and younger group is responsible for only 1 percent of sedans sold and less than 1 percent of new truck and SUV purchases.

Who Buys Electrics and Hybrids?

Energy-efficient vehicles are most popular in the 25 to 54 age group. This group buys half of all electrics and hybrids sold. The two other age groups split the rest down the middle.

What About Money?

Household income has a clear role in the types of vehicles people purchase. But, even here, there are some surprises.

The four income groups include buyers with a yearly income under $50,000, $50,000 to $74,999, $75,000 to $99,000 and $100,000 and over. You would expect the $100,000 group to purchase new vehicles more often. And, they do.

But, the second most active buying group is not the in-between earning groups, but the $50,000 and under earning group. Now that’s surprising.

Alex Perdikis, Koons of Silver Spring general manager and owner, lives in Chevy Chase with his wife and daughters.

By Alex Perdikis

Imagine having to ride a horse everywhere you want to go. You don’t do it because you want to, but because you have to. And, so does everyone else. You wouldn’t travel many miles in a day, and your world would be much smaller than it is now.

All of that changed with the invention of the motor car. Cars had a profound effect on the day-to-day lives of people and how countries around the world operated.

How It All Began

The first motorized vehicles were too expensive for anyone but the most wealthy to purchase. Henry Ford’s Model-T sparked a revolution for the working class, though. Ford decided that in order to get the Model-T into the hands of everyday working people, he had to find a way to manufacture cars much faster and less expensively.

That’s when Ford came up with the assembly line production method. Workers were trained in only one or two steps of the production, making it a much faster process. To further speed auto manufacturing, Ford decided to have workers stay in place and move the assembly line. Less expensive and quicker to build, Ford offered his Model-Ts at a price most people could afford.

Ford’s large-scale production model became, and still is, the standard in cost-effective mass manufacturing.

Changing Lives

Before cars became commonplace, most people lived their entire lives a few miles from where they were born. Moving longer distances became much easier with a car.

 

“Leisure time also changed. Automobile travelers could go longer distances and see different parts of the country than in the days of train travel and horses and buggies.”
— Alex Perdikis

 

Of course, roads were rough in the early days. But as more and more people bought cars, the demand for better roads increased. Soon, people were moving to different locations for work, to start a new life or for fun.

Car Manufacturing Altered the Economy

Not only were people buying cars, fuel and automotive accessories but producing cars changed the economy in a big way. The auto manufacturing industry employed workers and fueled other industries, including gas and oil.

It Wasn’t All Roses

Of course, the public’s quick adoption of motorized vehicles wasn’t without its problems. In the beginning, there were few regulations and no road signs. Roads still accommodated both motorized vehicles and horses. Numerous accidents occurred in the early days when horses either bolted in fear when they encountered a car or horse and car collided.

Motorized vehicles also caused numerous pedestrian injuries and deaths.

Laws and signs gradually caught up with the adoption of cars, but as the auto industry grew other sectors of the economy took a hit. Buggy manufacturer and horse trader businesses either adapted some way or shut down.

Time Moves On

Cars changed the course of countries around the world, but none more than the United States. As times changed, car manufacturing changed as well. Technological advances and environmental concerns mean that cars today are more energy-efficient and safer than ever.

What does the future hold? Will self-driving cars become the norm? How about electric cars? Only time will tell.

Alex Perdikis, Koons of Silver Spring general manager and owner, lives in Chevy Chase with his wife and daughters.

By Alex Perdikis

Since the first horse-drawn hackney for-hire service began in London and Paris in the 17th century, people have paid to get from one place to another. Whether it was a horse-drawn carriage or a motorized taxi, people in cities have always needed to get from place to place.

As times change, so do vehicle services. People who live and work in cities have a variety of options that includes public transportation and taxi services.

“Entrepreneurs, such as those who began Uber and Lyft services, stepped up to the plate to fill transportation gaps traditional services did not cover.” — Alex Perdikis

A new service called Inride fills a transportation service gap as well. Currently available in the D.C. and Baltimore areas, Inride gives a large segment of drivers the option of driving different cars on a short-term basis.

What’s Behind the Inride Idea

With the average monthly loan payment for a car hitting $523, many people opt for a lease instead. Leasing also allows drivers to turn in a car and drive something new periodically. However, leasing a vehicle is usually a 12-month or longer contract and includes paying for insurance, maintenance and the price reflects a driver’s credit rating. Leasing usually requires a downpayment as well.

But, what if there was a short-term rental service that let you pay a flat rate that covers insurance, maintenance and repair costs? And, what if you were able to swap out your car for a different one free of charge? Doesn’t that sound like a cool idea?

If you don’t want to commit to purchasing a car and paying a big monthly payment or get stuck in a long-term lease, Inride may be just what you’re looking for.

How Inride Works

Users begin by signing up on the Inride app. Drivers then select from available vehicles. After approval, Inride delivers the vehicle to the user who can use it for as long as they choose.

Speaking of options, you’ll love your vehicle choices. Inride offers two tiers of services. If you want the Premier Tier, you’ll choose from vehicles such as the Mercedes C-Class, Ford F-150 and Ford Explorer. If you prefer the Ultra Tier, you’ll find high-end options such as a Corvette or Porsche.  

Not only does Inride give you short-term options without the long-term hassles, but you also get the fun of driving the latest generation body styles for each model.

Moving Beyond the D.C. and Baltimore Markets

While Lyft and Uber fill the needs of consumers who need to get somewhere fast, Inride gives people who want to drive themselves in a car they love a way to do it. Inride is also appealing to the increasing numbers of millennials who shy away from making large purchases like homes and cars.

If the Inride service excels in the local markets, expanding the service to other regions across the country is likely. The need to get from place A to place B never changes. But, there’s always something new in the way you get there.

Alex Perdikis, Koons of Silver Spring general manager and owner, lives in Chevy Chase with his wife and daughters.