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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 Runaway1956 on Wednesday September 14 2016, @05:43PM
I have problems with the insurance scams, as well as the auto financing scams. The last vehicle we bought, we walked into a sales office, and asked, "What do you have for $3000 cash?" We were shown a half dozen cars, the wife really liked one of them, and we took it.
Now - obviously, the cars we drive aren't very valuable. Paying a couple thousand per year for insurance is ridiculous. Paying three or four thousand per year is insane.
For a long while, Geico seemed to offer the best deal around - then Shelter beat them out. We are happy to change insurers just as often as the rates start climbing.
Long story short - we pay about $1300 annually for insurance. That's for several vehicles, including a motorcycle, and allows our over 25 year old sons to drive them - except the motorcycle. Only the youngest son or myself can operate that particular vehicle, thanks to the way the policy is written. Off-road machines are simply not insured.