(March 20, 2010) Baby boomers comprise about a third of the United States' driving population and purchase almost half of all new cars sold, but automakers are somewhat surprised about the choices they are making today, according Edmunds.com.

"It was once thought that when baby boomers could put college tuition payments and other parenting expenses behind them, they would reward themselves with expensive luxury cars," commented Edmunds.com Senior Analyst Michelle Krebs, who presents on the topic to the Seventh Annual What's Next Boomer Business Summit in Chicago today. Krebs goes into more detail on this topic in an AutoObserver.com report. "But that was before economic catastrophe struck. Now that their kids can't find jobs and their nest eggs have shrunk, they are re-thinking everything, including their vehicle choices."

Many baby boomers are choosing vehicles that allow them to save money and gasoline while presenting an environmentally conscious image. A smaller vehicle not only means a smaller gas bill but likely also a smaller monthly payment and cheaper insurance — but not much sacrifice in the driving experience, since today's compact cars are stylish and can be loaded with features.

Baby boomers seeking efficiency are often drawn to Chevrolet Volt, Ford Fiesta, Honda Fit, Mini Cooper, Nissan Leaf, Toyota Prius and Volkswagen Jetta TDI.

Other baby boomers — especially those who often carry the grandkids or have hobbies that require hauling capability — are not ready to give up the functionality of a larger vehicle. Since their SUVs have become politically incorrect, many are buying crossovers — which have the interior space and versatility of an SUV but ride on the architecture of a car instead of a truck and therefore get better fuel economy.

Some popular crossovers include Buick Enclave, Cadillac CTS wagon, Ford Flex, GMC Acadia, Honda CR-V and Lexus RX 350.

Of course, some baby boomers are rewarding themselves — but luxury leaders Audi, BMW, Cadillac, Lexus, Lincoln and Mercedes are not the only automakers attracting their attention. Some boomers who are nostalgic for the past want the car they had in their youth — or the car they wanted in their youth. This segment is giving new life to Detroit muscle cars such as Chevy Camaro, Dodge Challenger and Ford Mustang.  And performance is being redefined to mean not just raw horsepower but fuel efficiency in a luxury or sport package. We're seeing highly efficient diesel-powered Audis, BMWs and Mercedes, and hybrid versions of the BMW X5 and Mercedes S-Class.

"At the recent Geneva Motor Show, I also saw Porsche and Ferrari hybrids — perhaps the dream cars of many baby boomers," notes Krebs. "Ultimately, we boomers haven't changed: we still want it all."