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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 SubiculumHammer on Wednesday September 14 2016, @02:03AM
i suspect that there are a lot og good used cars on the market, while new cars find it harder to find buyers.
(Score: 5, Interesting) by Thexalon on Wednesday September 14 2016, @03:02AM
That is definitely true: I picked up my current car at 10 years old and 120K miles. And it's running just fine after another 70K miles. Why buy a super-expensive new car on credit when I can pay cash for an older car that does the job nicely?
But yes, the reason my peers aren't buying cars is that they can't afford them. Or if they can afford them, they'd rather save the money if at all possible so they might someday have the beginnings of a nest egg. I did that early in my career, and it saved my butt in a big way.
"Think of how stupid the average person is. Then realize half of 'em are stupider than that." - George Carlin
(Score: 3, Informative) by Dr Spin on Wednesday September 14 2016, @09:02AM
When I went to have our 10 year old Ford serviced, I told the mechanic we were looking to replace it this year.
He said "I would not, if I were you. The new ones are not as reliable as the old ones". The large amount of
electronics in a modern car is a serious liability.
My younger son does not have a car because
Nowhere to park it
Hit by bogus whiplash claims, his insurance would be very high.
His mates who don't have cars would expect lifts all the time.
He uses Uber, Karhoo and Zip cars.
I had a car at his age because: he who has the car, gets the girls.
Warning: Opening your mouth may invalidate your brain!