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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: 1) by Francis on Wednesday September 14 2016, @05:54PM
That's part of it, but it's more complicated. The population is getting increasingly concentrated in urban areas where driving sucks. Transit systems are getting better and better, but even without the bus or a subway system, there's more available to do within walking range. And in much of the US there's an increased focus on providing people with safe ways of biking around the city. Especially around here where they're using bike lanes as an excuse to screw up traffic for drivers.
There's also a cost though, not just the cost of the car, but the cost of the insurance, the cost of the gas, the cost of parking and so forth.
The other thing is that motorcycles and scooters are getting more and more popular for young people. The cost of them can be less than the cost of taking the bus on a regular basis, but at a fraction of the cost of driving a car. Then there's the ride share companies that provide a car when you need it rather than having to commit to the car for many years.