FUN-DRIVEN GENERATION Y(OUNG) BUYER'S FIRST NEW CAR LIGHT, STYLISH.

Byline: Evan Pondel Staff Writer

WESTLAKE VILLAGE - So P. Diddy of Generation X probably doesn't drive a Saturn. But his younger listeners do.

That's because the increasing influence of Generation Y - a swath of Americans who were born between 1977 and 1994 - is already rubbing off on the U.S. light-vehicle market, according to a J.D. Power and Associates survey released Thursday.

The ideal car is no longer a gas-guzzling, sport utility vehicle or a family-money BMW. Try a new Kia, or a rugged - albeit marginally attractive, by critics' standards - Pontiac Aztek, or a sporty Honda Prelude.

``Our research indicates that Gen Y consumers are style-conscious, less loyal to domestic brands, and seek vehicles with fun-to-drive characteristics,'' said Walter McManus, executive director of Global Forecasting at Westlake Village-based J.D. Power. ``Gen Y consumers want vehicles that stand out and reflect their individuality.''

They also want vehicles that are less imposing on the pocketbook. This year, almost 10 percent of households headed by Gen Y consumers will buy new vehicles. That accounts for about 700,000 new-vehicle sales - the buyer's first new car in about 60 percent of these sales.

The Pontiac Aztek is an attempt to entwine the ruggedness of an SUV with the comfort and economy of a smaller sports sedan. Starting at $20,870, the car comes with more than 93 cubic feet of maximum cargo space, a removable console and cooler.

The study also shows that, along with lower transaction prices, Gen Y buyers prefer manual transmissions - a striking contrast with other generations.

The Honda Prelude comes with stick shift. Honda has billed the car as a more-affordable alternative compared with the other expensive two-doors on the market.

But stick shifts aren't the only preferences surfacing for Gen Y drivers.

For example, Gen Y buyers are less interested than older generations in purchasing environmentally sound vehicles, despite the need for fuel economy and practical operating costs. McManus said style appeal is far more important for these drivers 25 and younger.

Just ask David Kratz.

Wading through several rows of glistening Kias, the Glendale sales manager said people craving a new car come to his lot for two reasons: attractive automobiles and awesome warrantees. New Kia owners are entitled to a 10-year, 100,000-mile warranty.

``It's all about peace of mind when it comes to purchasing a Kia these days,'' he said.

More explicitly: the starting price of a Ferrari - about $141,000. The base price of a Kia - about $7,400.

``So there you go,'' Kratz said.

Dennis McCroskey is a firm believer in practicality versus pretension.

Not only does he sell Saturns; he drives a Saturn.

``And I think my car is tremendous,'' said the general manager of the Saturn dealership in North Hills. ``Customers can also trust our brands, and they love the service.''

The most popular color among Saturnites: Silver ``because it's sleek,'' McCroskey said.

The study predicts that Generation Y households will outnumber Generation X households within 10 years. Today, Gen Y heads only 6 percent of the households in the United States.

But that is expected to increase rapidly to 22 percent by 2010, while households headed by Gen X members will remain at 17 percent over the same period.

``The impressions made on these new households by their first vehicles will stick with them for a lifetime,'' McManus said. ``And automakers have already begun to factor Gen Y consumers into their strategic planning.''

That's good news for John Madden, a sales manager at Livingston Volkswagen in Woodland Hills.

The operative word at his dealership: ``Jetta.''

With Livingstone selling more Jettas than any other Volkswagen model, Madden said Gen Y customers like the car ``because it has a good sound system and looks pretty cool on the road.''

As for the Beetle's recent comeback, Gen Y ``isn't interested,'' Madden said. ``The Jetta is Gen Y's Beetle.''

CAPTION(S):

2 photos, box

Photo:

(1 -- color) With dealer employee Steve Horasan, right, watching, Edwin Rivas, 22, of San Fernando looks at a Saturn sport utility vehicle. Drivers in Rivas' Generation Y like Saturns but are more likely to buy the SC model than an SUV.

(2) Edwin Rivas, 22, left, looks carefully at a Saturn Vue sport utility vehicle but those his age are more likely to buy the SC model.

Joe Binoya/Special to the Daily News

Box:

GENUYNE APPEAL

SOURCE: J.D. Power and Associates