Mercedes Mullins
When it comes to car purchases, gender plays a role in the decision-making process. While men are 57% more likely to buy a new car, women are 44% more inclined to opt for a used vehicle. This difference in preference can be attributed to varying priorities and values, with men focusing more on luxury and image and women being more practical in their choices. Interestingly, women often secure better deals due to their thorough research and negotiation strategies. They are also more likely to prioritize safety features, while men lean towards tech-focused integrations. Understanding these gender-based trends in car-buying behaviour can provide valuable insights for both automakers and consumers.
| Characteristics | Values |
|---|---|
| Men are more likely to buy a new car than women | 44% of men vs 28% of women |
| Women are more likely to opt for a used car | 39% vs 27% |
| Women have lower monthly lease payments than men | N/A |
| Men pay more for popular sedans | 17% more |
| Men pay more for SUVs | 3% more |
| Women pay more for luxury vehicles | 7% more |
| Women are more practical in their car searches | N/A |
| Men focus on luxury manufacturers | N/A |
| Men are more interested in newer, tech-focused features | N/A |
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What You'll Learn
Women pay less for similar vehicles
While it has been observed that women often pay more for car repairs and services, an analysis of car payments by Swaplease.com reveals that women tend to pay less for similar vehicles. The study, which polled 2,500 people, found that women generally have lower monthly lease payments than men. For instance, men pay 17% more for sedans like the Toyota Corolla S and Camry LE, and 3% more for SUVs like the Ford Explorer XLT and the Chevrolet Equinox. However, the same study also found that women pay 7% more for luxury vehicles, such as the Lexus RX 350 and BMW 335i.
Scott Hall, Executive Vice President of Swaplease.com, attributes this discrepancy to the differing approaches of men and women during the negotiation process. Hall suggests that women tend to be better prepared and more informed, which gives them an advantage when negotiating car prices. On the other hand, men may rely more on instinct, which can put them at a disadvantage when negotiating deals. This claim is supported by a 2012 poll from LeaseTrader.com, which found that a higher proportion of women (two-thirds) ordered vehicle inspections during negotiations compared to men (a little over half).
The notion that women pay less for similar vehicles is further supported by a study by Ashley Langer of the University of Arizona. Langer's paper, "(Dis)Incentives for Demographic Price Discrimination in the New Vehicle Market," argues that demographics play a role in the price paid for a vehicle. Specifically, she finds that single women pay a premium over single men, while married men pay a premium over married women.
However, it is important to note that there are conflicting views on this issue. Some studies and reports suggest that women pay more for car ownership due to various factors, including the inherent biases in the automotive industry. For example, a 2022 study by Jerry found that women pay $117.12 more than men when buying new cars and $142 more per year for car ownership, which can amount to $7,800 over the typical eight-year ownership period. Additionally, the study found that women pay more for car repairs and services, which may be related to perceived lack of knowledge about cars.
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Men pay more for popular sedans
Fuel efficiency is an important consideration for many car buyers, with 84% of Americans agreeing that manufacturers should improve fuel economy on larger vehicles. A survey by Consumer Reports also found that 74% of Americans agreed that automakers have a responsibility to continue improving gas mileage.
While there is a demand for more fuel-efficient vehicles, the higher purchase prices that often accompany these cars are also a concern for consumers. Only 10% of Americans planning to purchase or lease a vehicle in the next two years would be willing to spread the added cost of efficiency upgrades over the vehicle's lifespan.
When it comes to who pays more for fuel-efficient cars, a 2015 analysis by Swaplease.com found that men pay more for popular sedans, such as the Toyota Corolla S and Camry LE, with lease payments up to 17% higher than those of women for similar vehicles. This may be due to the fact that women tend to do more research and preparation before purchasing a car, allowing them to negotiate better deals. According to LeaseTrader.com, two-thirds of women order a vehicle inspection during negotiations, compared to just over half of men.
So, while men may pay more for popular sedans, it is important to note that the gender pay gap also plays a role in car-buying power. Women earn between 72 and 79 cents for every dollar a man makes, which may impact their ability to purchase or lease a vehicle. Despite this, the Swaplease.com analysis found that women are often able to secure lower monthly lease payments and, therefore, better deals on popular vehicles, reducing the gender gap in car shopping.
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Women pay more for luxury vehicles
While it is unclear whether more women or men buy fuel-efficient cars, there is evidence that women pay more for luxury vehicles.
Women are buying more luxury vehicles than ever before, thanks to growing earnings, better marketing, and a richer mix of products designed to appeal to them. In the United States, 41% of luxury vehicles sold so far this year were bought by women, up from 37% five years ago, according to car shopping site Edmunds.com. This shift in the luxury market can be attributed to automakers like Lexus, which introduced the midsize RX SUV in 1998, specifically targeting women with its emphasis on reliability, spaciousness, and a soft, quiet ride. Since then, sales of small and midsize luxury SUVs have surged, with even traditional carmakers like Maserati, Porsche, and Jaguar entering this segment.
The increase in women's purchases of luxury vehicles can also be attributed to their growing earnings and better marketing strategies. Women are no longer viewed as solely practical car shoppers who prioritize family-hauling capabilities and affordability over luxury. Instead, they are recognized as major players in the car-purchasing process, with a strong interest in performance and luxury features. This shift has prompted automakers to adopt more sophisticated marketing strategies that resonate with women.
While ads may still predominantly feature men, they now showcase aspects that appeal to women, such as luxurious and quiet interiors, safety features, and emotional connections. Luxury brands are also engaging with women through fashion shows, art exhibits, and other interactive events. This shift in marketing strategies acknowledges the significant influence of women in the auto industry, and carmakers are adapting their offerings to cater to this growing market segment.
Additionally, it's worth noting that women often exhibit more thoroughness in the car-buying process. They are more likely to conduct research, negotiate, and order vehicle inspections, which can result in better deals and lessen the gender gap in automotive shopping. Despite earning less than men, women's purchasing power in the luxury vehicle market is significant, and automakers are taking note.
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Women are better negotiators
While there are gender discrepancies when it comes to buying a new car, it is not what you might expect. Women are better negotiators when it comes to buying cars, and this is due to their preparation and research. Swaplease.com's Executive Vice President, Scott Hall, suggests that women walk into the car-buying process better prepared for negotiation. In contrast, men tend to rely more on instinct, putting themselves at a disadvantage. This claim is supported by a 2012 poll from LeaseTrader.com, which found that two-thirds of women ordered a vehicle inspection during the negotiation process, compared to just over half of men. As a result, women often secure better deals on popular vehicles, reducing the gender gap in car shopping.
Women's superior negotiation skills in this context can be attributed to their thorough research and due diligence. They are more likely to do their homework before stepping into a dealership, which empowers them with knowledge about the vehicle and its value. This preparation enables women to make informed decisions and negotiate confidently. On the other hand, men's reliance on instinct can lead them to make impulsive choices without fully considering all the factors.
The car-buying behaviour of women reflects their practical and safety-conscious nature. They tend to prioritize safety features like automatic emergency braking over flashy upgrades. This practicality also extends to their choice of car manufacturers, with women opting for reliable options like Chevrolet, Ford, Toyota, Jeep, Hyundai, and Kia. In contrast, men are more drawn to luxury brands such as Mercedes-Benz, Lexus, and Audi, reflecting a focus on aspiration and image.
Women's approach to car buying can be strategic and financially savvy. They are more likely to opt for used cars, which often require lower down payments and monthly payments. This decision demonstrates women's consideration of long-term financial implications and their willingness to prioritize practicality over the latest model. By choosing pre-owned vehicles, women can secure more favourable financing options and build their credit scores over time.
While societal norms and gender stereotypes might suggest that men are better negotiators, the evidence suggests otherwise when it comes to car buying. Women's diligence, research skills, and practical mindset equip them to navigate the car-buying process effectively. Their ability to secure favourable deals challenges traditional gender roles and empowers them to make informed choices that suit their needs and budgets. This dynamic in the automotive industry is a testament to women's evolving role in society and their increasing financial prowess.
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Men rely on instinct
While there is no direct evidence to suggest that more men or women buy fuel-efficient cars, there are some interesting gender-based trends in car buying. For example, men are 57% more likely than women to buy a new car, with 44% of men and only 28% of women likely to purchase a new car. This may be because men tend to focus on luxury manufacturers such as Mercedes-Benz, Lexus, and Audi, whereas women are more likely to opt for a used car from manufacturers like Chevrolet, Ford, and Toyota.
When it comes to the car-buying process, men tend to rely more on instinct, while women are more likely to do their research and prepare for negotiations. This puts men at a disadvantage, as they may not get the best deal. A 2012 poll from LeaseTrader.com found that two-thirds of women ordered a vehicle inspection during negotiations, compared to just over half of men. This extra preparation means that women often end up with a better deal, lessening the gender gap in car shopping.
Swaplease.com's Executive Vice President, Scott Hall, confirmed this trend, stating that women are better prepared for the negotiation process and that men may rely more on instinct. This can result in men paying more for similar vehicles. For example, men pay 17% more for popular sedans like the Toyota Corolla S and Camry LE, and about 3% more for the Ford Explorer XLT and Chevrolet Equinox. However, women pay 7% more for luxury vehicles, such as the Lexus RX 350 and BMW 335i.
The reason for this discrepancy could be that men veer towards aspiration and image when choosing a car, while women are more practical in their searches. Women also prioritize safety features like automatic emergency braking over newer, tech-focused features like smartwatch integration or Apple CarPlay. This focus on practicality and safety may lead women to consider fuel efficiency when choosing a car, but it is important to note that other factors, such as price and brand, also play a role in the decision-making process.
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Frequently asked questions
There is no definitive answer to this question as it depends on various factors, including individual preferences, financial situations, and the options available in the market. However, research suggests that women are more likely to opt for used cars, which may include fuel-efficient models, while men are more inclined to buy new cars with higher price tags and luxury brands.
Women tend to prioritize practicality and safety features, while men lean towards newer, tech-focused options and luxury brands. Women are also more likely to research and prepare for the negotiation process, which can result in better deals and lessen the gender gap in car shopping.
Yes, according to research, women tend to prefer common manufacturers like Chevrolet, Ford, and Toyota, while also considering brands like Jeep, Hyundai, and Kia. Men, on the other hand, tend to veer towards luxury manufacturers such as Mercedes-Benz, Lexus, and Audi.
Yes, survey data suggests that men are more likely to buy new cars, which often require financing and a higher credit score. Women, on the other hand, are more inclined to opt for used cars, which have lower average down payments and may be more affordable overall.
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