Young Buyers Look Overseas for Cars

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Plotted on a graph, buyer ages vs. sales volume for Scion and for the Toyota Yaris, another subcompact, are shaped like a barbell: a peak at each end and flat in the middle, said Toyota's Hoyt.

Volkswagen (VOWG) is another successful brand with younger buyers, accounting for three of PIN's Top 11 vehicles with the lowest average age: the GTI, the Rabbit, and Jetta. (The Top 10 became the Top 11 because there were several ties—same for "older" vehicles.)

Like Scion, VW has a polarized buyer profile, says spokesman Tom Luke. "Our products are instinctively designed to attract younger people, or those who aspire to be younger. If you're 25 you love us, or if you're 45 you love us," he said.

Hard to Generalize

Nissan (NSANY) also did well among younger buyers, but it has a much flatter buyer age profile, says Christopher Li, PIN research specialist. For the brand overall, Nissan buyers average out to 43 years old. Unlike Scion or VW, Nissan buyers are evenly distributed, from 28 to 48 years old, according to the PIN data. That makes it hard to generalize exactly what younger buyers want.

For instance, concern about fuel economy is much higher among younger buyers, according to market research firm Strategic Vision. About 60% of buyers under 25 rated fuel economy as an extremely important reason to purchase a particular vehicle; vs. 47% for 25 to 34 years old; or 40% for those 35 and up, the firm said.

As part of its effort to intercept import-minded shoppers, Chevrolet and parent company GM are heavily advertising fuel efficiency, and offering cars that run on alternative fuels. "We have to change the perception that import competitors have the best mileage solutions," said Peper of Chevrolet.

Yet the three Nissan models among the Top 11 "youngest" models are all trucks, including the giant Titan pickup, the equally huge Armada SUV, and the midsize, outdoorsy Xterra SUV. The Xterra is a logical choice for younger buyers in terms of lifestyle, but none of the three gets terrific mileage, especially the Titan and the Armada, which get only an EPA-estimated 12 mpg in city driving.

It could be that younger bargain hunters are buying the Nissan trucks, which all carry incentives. According to edmunds.com, Nissan has by far the highest incentives of the three biggest Japanese import brands, at an average of $2,015 in September, vs. less than $1,000 each for Toyota and Honda (HMC). The Detroit Three were all above $3,000, edmunds.com said.

Besides fuel economy, young buyers also rank price-related concerns high as a reason for purchase, Strategic Vision said. Younger buyers also put a high premium on "fun to drive" attributes, the research firm said.

Buy American

If it's sometimes hard to predict what younger buyers want, it's easier to predict what older buyers want: big, American sedans. Sedans from Ford and its Lincoln and Mercury brands accounted for 7 out of the 11 "oldest" cars compiled from the PIN data. (Another Ford brand, Mazda, had two of the "youngest" 11.) According to Strategic Vision, 39% of buyers 65 to 80 years old said "American made" is an extremely important reason for purchase, vs. 29% on average for the industry, or only 23% for those under 25.

The Toyota Avalon, which mimics the room, ride, and comfort of a big American sedan, was the sole model from an import brand among the "oldest" models. In fact, like many Toyotas sold in the U.S., the Avalon is built in Kentucky. In one ad in its campaign to introduce the Malibu, Chevrolet complains that it is "tired of feeling like a foreign car in our own country."

Maybe getting treated like a foreign car is what the domestics should be wishing for.

Click here to see the cars that are most popular with older and younger American drivers.

Jim Henry is a reporter covering the automotive industry and automotive trends in BusinessWeek's New York office.