Hispanic car buyers: 4 tips to drive up your dealership's sales

America is going through a transitional period in the midst of a demographic revolution. The results of the 2020 census will prove it. According to a report from Nielsen, there are over 62.3 million Hispanics living in the USA, representing 19% of our population. Their median age is 28, so they are swiftly approaching their peak earning years. 

From 2010 to 2019, Hispanics’ buying power increased 69%, compared with 41% of non-Hispanics. Over the past 6 years, Hispanics accounted for 75% of all U.S. labor force growth. Their purchasing power is expected to reach $1.9 trillion by 2023, which is higher than the GDP of countries such as Australia, Spain, and Mexico. 

As mainstream is transitioning into a multicultural society, consumers are changing as well. Understanding their wants, needs, and desires are key to business success. If you really want to assure a sustainable growth moving forward, adjustments should be considered in all levels of your organization to reflect this new community you serve. You must take a fresh look at the way your brand communicates and engages with these influential consumers.

If we take a look at the automotive industry, for example, many car dealerships have been neglecting this market for a while and it may already be taking a toll on sales. In some cases, there hasn’t been a true commitment to this audience, except perhaps a one-off marketing attempt or a weak media buy with a local Hispanic network. However, for those dealerships willing to connect the right way with Hispanics, the results are impressive.

The good news is, that the growth of the Hispanic community can translate to more car sales and greater profits for your dealerships. It is estimated that Hispanics spend 94% of their disposable income verses 83% of non-Hispanics, according to a report from IHS Global Hispanic Market Monitor.

On average, Hispanic car buyers are about 30% more likely to be buying their first vehicle, and are increasingly likely to buy a new vehicle over a used one. Hispanics are also 50% more likely to buy a luxury car as their first vehicle. All of this is great news for the industry and should be an eye-opener to dealerships who have stereotyped this market as low income or non-influencers. Recent statistics prove quite the contrary.

So, what’s fueling this growth? The U.S. Hispanic population growth is domestic. It has been and will continue to impact the economy of this nation moving forward. One important factor about this is the fact that income levels among U.S. Hispanics have been steadily rising over the past few years. As the U.S. Hispanic community matures, their household incomes increase and so does their economic class. The projected growth of Hispanic household incomes of $100k+ between 2017–2022 will be +23% vs. +12% for non-Hispanics, based on a Geoscape report. 

In addition, Hispanics are a young generation and could therefore potentially buy more cars over the course of their lifetime than any other demographic.

Here are four messages you need to send out to Hispanics in order to drive sales and boost traffic in your dealership:

·       Your business is welcome: The experience your brand creates is key to your success with Hispanic car buyers. It starts from the first time they interact with your dealership. I can assure you that starts online first and it must be carried through even after the purchase has been made. It is important to have a bilingual website with culturally relevant content that appeals to Hispanic consumers. Hire someone who has proven experience to show you how to do this effectively. Stay away from google or software web translation services. Their lack of cultural relevancy always makes things worse.  Also, consider diversifying your team based on the community you serve. Train them very well. If clients ask for assistance in Spanish, make sure to have somebody who will understand their needs fluently. 

·       It’s a celebration: For many Hispanics, buying a car is a big-ticket experience. So they tend to celebrate big, too. It is important to recognize and reflect that this is an event for them. It is also a family decision and an achievement they have worked hard to earn. The most important thing is that they value their relationship with the dealership. They are concerned about how they are going to be treated. The right training will help your team understand their purchase process and will help set your company apart from your competition.

·       We’ll connect where you’re comfortable: It is estimated that 84% of Hispanic auto buyers use the internet during their purchase process. So meet them on their terms and entice them online. SEO is the No. 1 source for gathering information. Having a strong online presence with culturally relevant messaging in English and in Spanish will help your company stay top of mind. Hispanics are heavily engaged on digital platforms and avid consumers of content. For example, it is estimated that almost half of the website traffic to Spanish-language auto websites is organic, which means that Hispanic consumers take the initiative to do research on various brands. Car companies that actively consider and engage with this audience will ensure brand loyalty and more effective campaigns. Dealerships should mention their Spanish sites in their local marketing efforts—and provide links to Spanish sites on their primary English sites—to help increase awareness among these consumers.

·       We support your community: The best way to be successful with this influential audience is through an omnichannel campaign with culturally relevant messages. Supporting Hispanic community events is also key to your success. Remember, online efforts must support offline and vice versa. You may say “I do not have the budget to do something new at the present time.” The question is: how are you planning to drive traffic and grow sales in your dealerships if you are not willing to adjust your strategy based on the existing demographic changes and growth? Do you think that doing the same thing over and over will create a different result? How much sales are you leaving on the table by not properly tapping into this growing and influential audience? The answer is: you do not have to spend additional marketing dollars. You should be willing to reallocate your existing marketing budget to those areas of growth, in this case Hispanic consumers.

Hispanics will contribute more growth than any other population segment. It is estimated that for the next 40 years Hispanics will be the primary contributors to the total U.S. population growth, comprising 53% of growth in just the next 5 years and 68% of the growth for 2060. Pause here and think about the implications that can have on your business.