Interesting Article: M3 buyers are surprisingly young

[valeram]

From today's MSNBC news column:

"When it comes to cars, kids want luxury
Some fresh-out-of-school professionals 'stretch' to afford upscale models
The BMW M3, with a base price of $54,000 to $65,000, has the lowest average customer age of any model in the automaker's lineup."

http://www.msnbc.msn.com/id/25352526/

It shows the Y Generation's mentality.

[AwesomeM3]

Originally Posted by valeram

From today's MSNBC news column:

"When it comes to cars, kids want luxury
Some fresh-out-of-school professionals 'stretch' to afford upscale models
The BMW M3, with a base price of $54,000 to $65,000, has the lowest average customer age of any model in the automaker's lineup."

http://www.msnbc.msn.com/id/25352526/

It shows the Y Generation's mentality.

Very surprising!

[Hans Delbruck]

Wow, where did AutoPacific gather this data? On M3post???

“Generation Y is shaking out very differently to other generations,” said Kim. “There are unprecedented numbers of boomerang kids who come home after college and stay a long time.”

Living with the parents rent-free frees up cash for flashy rides like the M3, he said.

“They are not paying rent; they are not paying utilities. The temptation is huge to go out and buy a high-dollar performance car,” Kim said.

Yeah... this is the generation whose parents told them "YOU ARE SPECIAL" every day of their formative years. You know... the same kids who went to ballgames where they didn't keep score and neither team was "the winner." Yea, this positive-reinforcement at the expense of REALITY is playing out really well..... there is so much more to this discussion I'm going to have to cut myself off:

[valeram]

Originally Posted by Hans Delbruck

Wow, where did AutoPacific gather this data? On M3post???




Yeah... this is the generation whose parents told them "YOU ARE SPECIAL" every day of their formative years. You know... the same kids who went to ballgames where they didn't keep score and neither team was "the winner." Yea, this positive-reinforcement at the expense of REALITY is playing out really well..... there is so much more to this discussion I'm going to have to cut myself off:

It looks like the BMW marketing people already know their target buyers. There was this discussion about how the M3 changed from a fast light car to a faster but heavy luxurious car. They are really doing their research.

[yemenmocha]

I'm not surprised at all. It seems that it's usually teenagers who are giving me the thumbs up in the M3. Personally I think the exterior design was clearly aimed at a younger target audience.

[JEllis]

I really have to question that stastistic...not that any of us should really pay much attention to statistics....

Jason

[uthatch]

Originally Posted by Hans Delbruck

Wow, where did AutoPacific gather this data? On M3post???




Yeah... this is the generation whose parents told them "YOU ARE SPECIAL" every day of their formative years. You know... the same kids who went to ballgames where they didn't keep score and neither team was "the winner." Yea, this positive-reinforcement at the expense of REALITY is playing out really well..... there is so much more to this discussion I'm going to have to cut myself off:

You are so damn right. This world is sick.

[yemenmocha]

The Generation data is well-established by sociologists and discussed widely by academics. Whether or not the data holds for the M3 I'm not so sure.

Another label for Gen-Y students is "snowflakes". You know, every snowflake is unique and special and nothing else is like it, and Gen-Y's have been told this since childhood. Oh, and you can't put snowflakes under any heat, or they'll melt. :-(

[lugnut]

Let's also not forget that salaries are higher now too, so many 22-29 year old are making close to a 100k a year right out of University. I am curious if these numbers include leases as well as purchases. Anyone can lease a car. Hell, the dealership where I purchased my M3 has a lease special right now. E92 M3 is $899 a month (10K miles and around $5k at signing). Not bad really, especially if you don't have a rent payment to worry about. Where I live (Northern NJ) it is not uncommon to see younger people in high-end autos. I have no problem with it as long as they worked for it. When a kid gets and AMG car for his 17th birthday, that's when I get annoyed.

And for full disclosure I'm 28. My teams kept the scores, cut players that sucked, and didn't give out trophies to the 13th place teams.

[ihyln]

Originally Posted by lugnut

Let's also not forget that salaries are higher now too, so many 22-29 year old are making close to a 100k a year right out of University. I am curious if these numbers include leases as well as purchases. Anyone can lease a car. Hell, the dealership where I purchased my M3 has a lease special right now. E92 M3 is $899 a month (10K miles and around $5k at signing). Not bad really, especially if you don't have a rent payment to worry about. Where I live (Northern NJ) it is not uncommon to see younger people in high-end autos. I have no problem with it as long as they worked for it. When a kid gets and AMG car for his 17th birthday, that's when I get annoyed.

And for full disclosure I'm 28. My teams kept the scores, cut players that sucked, and didn't give out trophies to the 13th place teams.

Doctors or maybe lawyers in bigger firms but that kind of salary out of university is literally unheard of. I'm your age as well

[yemenmocha]

The early 20 somethings are also probably getting financial assistance from mom & dad, and there is data showing that Millennials often go back home to live with mom & dad after graduation. If your only major expense is a car, why not buy something that is $1500/month?

[Mack211]

I guess I fall into this... Although I did not "boomerang" like many people I know. I just happen to have worked my ass off in college, got a good career, and no kids to support. I don't see anything wrong with spending a little extra for a car that I have dreamed about since I can remember. I put a great deal into short and long term savings and still have enough to make the monthly payments. I guess I am just trying to point out that maybe some younger guys just have a good head on their shoulders and know what to work for.

[Voltigeur]

-

Glad to see that we, as in the US consumer, still believe in excess leverage to be the hedonists of last resort.

@Hans Delbruck: I could also weigh in on this. WSJ had a great article about this very subject of excessive positive reinforcement sans critique - but hey, I'm probably a bitter 40-something as I did not feel comfy borrowing the money to step into luxury in my 20s

[Voltigeur]

Originally Posted by Mack211

I guess I fall into this... Although I did not "boomerang" like many people I know. I just happen to have worked my ass off in college, got a good career, and no kids to support. I don't see anything wrong with spending a little extra for a car that I have dreamed about since I can remember. I put a great deal into short and long term savings and still have enough to make the monthly payments. I guess I am just trying to point out that maybe some younger guys just have a good head on their shoulders and know what to work for.

Good for you! - now if everyone were like that ...

[Voltigeur]

Originally Posted by valeram

It looks like the BMW marketing people already know their target buyers. There was this discussion about how the M3 changed from a fast light car to a faster but heavy luxurious car. They are really doing their research.

Wouldn't that appeal to the mid-life crisis crowd the most? Some features, like the premium sound and likely more targeted to the younger demo ...

[DJ9]

This article is a bit misleading and has a tendency to use quotes and opinions to support the author’s assumptions. Not to mention, someone born in 1978(~30 yr old) vs. someone born in 1994(~15); is a very large demographic with uncorrelated financial means, for the most part...very strange population to use as the basis for their discussion point.

Based on this article; I fall into Gen-Y bracket as well....but I studied hard, played hard, and now work hard. This equates to me owning property(not renting) and purchasing the toys that I can afford; while still remaining fortunate for my possessions and appreciative for what I am allowed to do. Of course I'm close with my parents, shit I hope most of us are, however my parents did not feed me with a silver spoon growing up as this article implies.

Originally Posted by ihyln

Doctors or maybe lawyers in bigger firms but that kind of salary out of university is literally unheard of. I'm your age as well

Beg to differ. Fresh out of University(undergrad), from my experience, if you fall into the Financial Services industry; 100k+ is obtainable on an all-in basis(Cost of living is a factor as well).

[Dascamel]

So I'm an old fart at 34?

[yemenmocha]

Yes, you're a Gen-X'er, and old.

You're probably offended by a cell phone going off in a meeting or movie theatre. :-)

[Ramphaus]

Damnit! Off I go to the Volvo dealership...

Seriously though, I'm 33 and find myself right in between the youngsters that sometimes don't appreciate what they have and the older group that are driving the car they always dreamed of - most of whom could have had that car earlier on, but placed the financial security of their families way ahead of themselves.

The local european car group in my area happens to be the younger crowd. Most of them are still in college. I should try hanging out with them before forming a conclusion, but I just doubt that we'd mesh very well. I do have another group of BMW peeps that meets from around the country 2-3 times a year. They're older - in fact I'm the youngest one there, I think. They are quite mature, as you would imagine. But dang, they sure don't drive like they're 50!

I think there has been a post or two going around this forum recently that only incites this type of sentiment, and that's unfortunate. Though I never had to, there IS something to be said about struggling to succeed...and then doing so.

[Dascamel]

Originally Posted by yemenmocha

Yes, you're a Gen-X'er, and old.

You're probably offended by a cell phone going off in a meeting or movie theatre. :-)

Very accurate...

[HappyNDing]

Uh-oh, I think I fit right into that statistic as I just graduated with my first job and am lusting over the M3. However, I've decided to take advantage of the housing crisis to buy a condo first, then buy the M3 around Spring or Summer of 2009.

Also, I've got no issues with parents buying their 18 year old M3s for getting into the local state colleges as long as they actually take care of the car (i.e. not putting 20"+ rims / loud sound system on it) and not just use it for trips to the mall only for some parking lot pimping.

[mkoesel]

Originally Posted by Dascamel

So I'm an old fart at 34?

Nah, many of us are 30 somethings. According to the age polls here on M3Post, it seems that there are about the same number in 20s as there are in 30s. Hey just be thankful that you aren't 41, because according to Larry, you wouldn't even have bought the car.