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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: 4, Interesting) by NotSanguine on Wednesday September 14 2016, @12:08AM
Early GenXer here.
I never owned a car and never wanted to own one. I made sure to live in a place where I didn't need one.
If I do go someplace where I need to drive, I rent one. No muss, no fuss, no wasted money on maintenance, car loans, car insurance or gas.
I'd be willing to bet that a lot of this is just that Millenials are settling down with families later, and staying in cities where there's good public transport.
Once they do start to have families, then they'll move to the 'burbs and buy lots of cars.
No, no, you're not thinking; you're just being logical. --Niels Bohr
(Score: 2) by Phoenix666 on Wednesday September 14 2016, @02:21PM
I don't think that's the case. Times have changed. Suburbs aren't the utopia that people once imagined they were. The trends have been gone the other way in the last 20 years, with more people wanting to live in the city cores for the convenience and amenities they afford. It's quite possible to raise kids in the city; you don't spend your entire day chauffeuring them from school to sports to music lessons the way you must in the suburbs.
Washington DC delenda est.
(Score: 2) by NotSanguine on Wednesday September 14 2016, @03:40PM
Once they do start to have families, then they'll move to the 'burbs and buy lots of cars.
I don't think that's the case. Times have changed. Suburbs aren't the utopia that people once imagined they were. The trends have been gone the other way in the last 20 years, with more people wanting to live in the city cores for the convenience and amenities they afford. It's quite possible to raise kids in the city; you don't spend your entire day chauffeuring them from school to sports to music lessons the way you must in the suburbs.
I never thought suburbia was a utopia. In fact, I was always deeply disturbed by it given that I was born, grew up and continue to live in a very large city.
As an adult, watching my siblings' kids (interestingly, not only did they live in the suburbs, but on cul-de-sacs or dead end streets) be utterly dependent upon their parents to go anywhere or do anything until they were old enough to drive themselves, I was struck by how limiting that was.
The problem is that many cities are fairly crowded and real [zillow.com] estate [rent.com] is [apartments.com] often [rent.com] prohibitively [zillow.com] expensive [streeteasy.com] for young families.
This is not the case in many suburban areas. Which is why I think that (sadly) many young families will choose to move to those areas.
Growing up in a large city was a wonderful experience, and I think that it can still be so, assuming parents can afford it.
No, no, you're not thinking; you're just being logical. --Niels Bohr