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Auto manufacturers today are scratching their heads, trying to figure out why the millennial generation has little-to-no interest in owning a car. What car makers are failing to see is that this generation's interests and priorities have been redefined in the last two decades, pushing cars to the side while must-have personal technology products take up the fast lane.
It's no secret the percentage of new vehicles sold to 18- to 34-year-olds has significantly dropped over the past few years. Many argue this is the result of a weak economy, that the idea of making a large car investment and getting into more debt on top of college loans is too daunting for them. But that's not the "driving" factor, especially considering that owning a smartphone or other mobile device, with its monthly fees of network access, data plan, insurance, and app services, is almost comparable to the monthly payments required when leasing a Honda Civic.
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With recent studies showing a huge decline in auto sales among the millennial marketplace, it's no wonder auto manufacturers are in a mild state of panic, realizing they're missing out on a generation that wields $200 billion in purchasing power. Numbers don't lie, and over the last few years statistics have shown a significant drop in young people who own cars, as well as those with driver's licenses—and that decline continues among the youngest millennials, meaning this is not a trend that's going away anytime soon. From 2007 to 2011, the number of cars purchased by people aged 18 to 34, fell almost 30%, and according to a study from the AAA Foundation for Traffic Safety, only 44% of teens obtain a driver's license within the first year of becoming eligible and just half, 54% are licensed before turning 18. This is a major break with the past, considering how most teens of the two previous generations would race to the DMV for their license or permit on the day of their 16th birthday.
(Score: 2) by TheRaven on Wednesday September 14 2016, @09:40AM
I live in San Diego
Of all the places I've visited, San Diego is probably the one that is most hostile to people who don't drive. On one trip, we stayed in a hotel that's just across the road from a strip mall. One of my colleagues checked in and explained to the clerk that he didn't have a car, so didn't need valet parking, but did need to pick up a local SIM card so wanted to know the way to the nearest phone shop. The clerk gave him driving directions in spite of having been told 30 seconds earlier that he didn't have a car. The nearest bus stop to the hotel was only accessible by car. Wonderful climate, but definitely a city completely built around the idea of the automobile.
Think about it. I own a car, need to buy gas for it, need to maintain it. I hire an uber driver. They own a car, need to buy gas, maintain it, plus make money. Which do you think will pencil out in the end?
Between depreciation, road tax, servicing, and insurance, the cost of owning a car here is at least £100/month even if you never drive it. On top of that, if you do drive it then fuel costs money too. The fixed costs are sufficiently high that it's a lot cheaper to rent a car (even a car with a driver) if you're not using it that much.
When I bought my first house, places just outside of town that would have required me to buy a car were a lot cheaper. I considered them a bit, but between the appreciation on property vs depreciation on the car, over a 10-year period it didn't make financial sense. The difference in mortgage payments would have been similar to the cost of operating a car, but the money paid to the mortgage was on an appreciating asset. Oh, and I could go out in the evenings and still be able to walk home a little bit drunk, whereas driving home equally drunk would have been a very bad idea.
sudo mod me up
(Score: 2) by Hawkwind on Wednesday September 14 2016, @05:46PM
I've ran in to weird car-oriented behavior in San Diego also BUT the city has a good transit system once you get dialed in to it. It's easy to get to all the major parks, Tiajuana, and the beaches. Walking around downtown is easy. Walking/bicycling mission beach is easy.
In my experience, though, the hotels have really wanted to rent us cars.