¿Se Habla Español? You Had Better Learn, and Quickly!

The profile of the U.S. auto buyer is changing. This is obvious to see in markets like Miami and Los Angeles where the Hispanic population already accounts for a large percentage of the population, but the reality is the Hispanic market is increasing all over the country. In fact, it is the fastest-growing segment of our population. Right now, there are approximately 45 million Hispanic consumers in this country, and in 2007, they had a total buying power of over $890 billion. By 2012, the Hispanic population is expected to grow to 56.8 million, which will prompt a massive increase in buying power.

So, why aren’t more auto dealerships advertising to this customer demographic? Because many dealerships don’t realize that in 2007 Hispanics alone spent over $36 billion on automobiles. It’s time to pay attention.

The primary reason you should focus advertising energy on Hispanic consumers is population growth. As this demographic grows, it is important to establish brand awareness early. The more familiar customers are with you and your message, the more likely they are to buy from you now and in the future. The second reason to focus on this demographic is age. Hispanic households are typically younger and have significant disposable income, so by advertising to this consumer you can build lasting buying habits early.

The third reason dealers should advertise to Hispanic consumers is: they buy more cars more often. Hispanics do not keep cars as long as non-Hispanics, so they are in the market for a car more often. They also buy more cars because their families are often larger. The average size of Hispanic families is about 3.8 people per household. This is much greater than non-Hispanic households, which average about 1.8 people per household. In the last ten years, while the non-Hispanic auto market has declined 32 percent, the Hispanic auto market has increased by 59 percent. Hispanic consumers are car buyers.

Now that you are convinced you should make significant efforts to reach Hispanic consumers, the question is: how do you do it? Well, the best way to reach this consumer is by advertising to them in Spanish. Hispanic consumers need to be reached in the language with which they are most comfortable, and 88 percent of them speak only Spanish at home. They may understand English, and they may regularly speak English, but it is still their second language. You will always sell more to customers that feel comfortable with your message, and reaching out to Hispanic customers in their first language reaches their comfort zone.

Additionally, Hispanics are more receptive to advertising messages. Statistics show that 59 percent of Hispanics are more receptive to marketing and advertising messages, indicating that they “enjoy looking at or listening to advertising.” This probably has to do with the fact that they are not as exposed to advertising messages as often as English-speaking consumers. This makes them less skeptical and, as a result, more responsive. Imagine a consumer that actually listens to your message. This is the customer we all dream about. What is also clear about Hispanic consumers is that they like television. Television is by far the most influential medium among Hispanics. So, if you advertise to this market and do not use television, you really aren’t advertising to this market.

Hispanic consumers are also loyal customers who aren’t quite as concerned with the “lowest price” message. Instead they value relationships and good customer service. If you treat them well, with respect and provide a positive experience, they will reward you with a loyalty that simply does not exist among non-Hispanics. Loyalty drives referrals, and because Hispanic customers are so loyal, they will generate a significant amount of referral business for you. Hispanic communities are tight-knit communities that communicate often. This allows good news to travel faster. Have you ever lived in a small town? There are no secrets. Everybody knows everybody else’s business. The Hispanic community in your area is no different.

Two long-time myths about Hispanic consumers are: they make less money and spend less on cars.

But the truth is, the average Hispanic earns $47,000 annually, and among the 4.8 million consumers who spend $30,000 or more on their next vehicle, 17.4 percent are Hispanic adults. Again, in 2007, Hispanics spent over $36 billion on automobiles.

Hispanic customers will be a major part of your dealership’s future, but they could be a major part of your business now. If you’re not already factoring this customer demographic into your business equation, it’s time to start... BEFORE your competition. Gain their loyalty early, and it will carry for years to come. As big as this market is, it is amazing to me that dealers spend so little on Spanish advertising. The market is wide open. The time to capitalize is now.