In an evolving automotive landscape, a recent comprehensive study sheds light on a significant trend among new car purchasers: a growing inclination to forgo advanced, high-cost features in favor of more economical options. This shift is particularly pronounced within the budget-conscious segment, where buyers are increasingly prioritizing financial prudence over an array of cutting-edge technologies and luxurious appointments. The findings challenge the conventional wisdom that elaborate vehicle attributes drive consumer interest, suggesting instead that simplicity and affordability are becoming paramount considerations for a substantial portion of the market.
The "Future Attribute Demand Study" by AutoPacific, which gathered insights from over 14,000 recent new vehicle buyers, revealed compelling data regarding consumer preferences. Despite the automotive industry's push to integrate opulent features like panoramic glass roofs, customizable digital instrument clusters, and head-up displays, the actual appetite for these enhancements, especially among those shopping for vehicles priced between $25,000 and $35,000, remains surprisingly low. For this demographic, a streamlined vehicle that keeps monthly payments manageable is far more appealing than a car laden with expensive, non-essential technology.
Robby DeGraff, AutoPacific’s manager of product and consumer insights, noted that many value-oriented buyers express a preference for fundamental vehicle characteristics. Features such as front-wheel drive, basic audio systems, manually adjustable cloth seating, and analog gauges are gaining traction. This indicates a potential need for car manufacturers to reassess the standard equipment offered on entry and mid-level trims, aligning them more closely with the tightening budgets of consumers facing economic uncertainties.
Even features considered common and desirable by some, such as wireless smartphone integration (Apple CarPlay and Android Auto), selectable driving modes, heated steering wheels, and power-adjustable passenger seats, are only 'must-haves' for a modest 26% of buyers in the sub-$35,000 segment. Other, more premium features like all-wheel drive (24%), memory driver's seats (23%), and welcome lighting (22%) see even lower demand. Features like reconfigurable digital gauge clusters (21%), panoramic glass roofs (20%), head-up displays (15%), and leather upholstery (11%) are sought after by an even smaller minority.
Interestingly, the study also indicates that even among buyers with higher incomes, the demand for these luxurious features isn't overwhelmingly stronger. For this group, selectable drive modes topped the list at 33%, followed by wireless smartphone connectivity, power passenger seats, heated steering wheels, and premium audio systems, all tying at 31%. All-wheel drive and welcome lighting were desired by 29% and 28% of these buyers, respectively, while memory seats, digital gauge clusters, and panoramic roofs each garnered 27% interest. Head-up displays were desired by 23%, and leather upholstery by 18%.
For consumers in the $25,000-$35,000 range, their preferences extend beyond just foregoing luxuries. Approximately 20% expressed interest in hybrid powertrains, while a mere 5% considered a battery-electric vehicle. A notable proportion of these buyers are first-time new vehicle purchasers, many trading in vehicles over a decade old. This context explains their inclination towards traditional instrument panels featuring analog gauges and physical controls, complemented by a straightforward central touchscreen that excludes built-in navigation. Despite their practical approach, there's still a desire for modern conveniences such as wireless charging pads, heated/ventilated front seats, 110-volt outlets, driver profile settings, and advanced safety systems. These buyers, typically earning a median household income of $50,000, reside in suburban areas, drive less than 20 miles daily, and do not have children at home. The demographic profile is diverse, with Millennials constituting 31%, Baby Boomers 29%, and women making up 57% of this segment.
The rising cost of new vehicles, which has outpaced inflation significantly, underscores a critical issue of affordability that the automotive industry appears to be overlooking. With average new car prices soaring, manufacturers seem to be prioritizing features that appeal to their most affluent clientele, inadvertently neglecting the substantial segment of buyers who are seeking more accessible options. This strategy, as highlighted by AutoPacific President and Chief Analyst Ed Kim, suggests that while higher-end, optional features can be beneficial on premium trims, automakers should also focus on providing well-equipped, yet affordable, models. This approach could capture a broader market, including those who may be downsizing from more expensive vehicles due to economic pressures, ultimately fostering a more inclusive and sustainable market for new vehicles.