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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 slinches on Wednesday September 14 2016, @05:41AM
Have you priced out the used car market recently? To get a decent used car with low miles will cost at least $6000-8000 from a dealer that will offer a short warranty or about a thousand less from a private seller as-is. And for that price it will be a later model vehicle that gets mediocre mileage.
We need something to be available that will cut that cost in half. I don't see anything on the used market now that fits the bill, so it will need to be a new vehicle. And once this new low cost vehicle establishes its own used market, the threshold will be dropped even lower.
Right now, the choices are to buy an expensive car and then live far out from the city center to maintain a decent standard of living or eschew the costs of a vehicle and instead pay the exorbitant rent/real estate prices to live in a city, close to public transport and entertainment. Those are both expensive. The quality of life for anyone who currently can't afford either of those would be greatly improved with access to much more affordable personal transportation.
(Score: 0) by Anonymous Coward on Wednesday September 14 2016, @02:48PM
How about something new, with a warranty, that gets outstanding mileage?
https://www.eliomotors.com/ [eliomotors.com]
I do not work for nor have a financial interest in the company, I just think it's a good idea.
(Score: 2) by Scruffy Beard 2 on Wednesday September 14 2016, @08:33PM
I gave up when that site had a "loading" screen.