Article about young people buying fewer cars, and marketing executives trying to figure out why (muscle car, insurance)
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I guess that raises the question - is this something that the auto companies might be able to reverse through clever marketing, or are the changes more fundamental? And what does it mean for the future of the American auto market?
This could be good and bad. Styling entry level Chevrolet's to appeal to young buyers is fine as long as they don't completely turn off an older customer on a tight budget looking to purchase a new vehicle. Such styling could turn into a "love it or hate it" style. The article also raises the hairs on the back of my neck by bringing up "Jersey Shore" and that teen mom show.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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That's very simple, they no longer need to drive ion order to communicate with each other like we did before, with all of them texting each other. That, and the cars are all the same these days, nothing special to stand out and make young people want one as the 60-'s muscle cars did.
That's very simple, they no longer need to drive ion order to communicate with each other like we did before, with all of them texting each other. That, and the cars are all the same these days, nothing special to stand out and make young people want one as the 60-'s muscle cars did.
When the parents have had enough of their deadbeat lifestyle and kick the kid to the curb then junior will need transportation for unimportant things like a job, food, moving into a home or apartment, etc. I don't use my car to communicate. Guess I'm just too old to lose myself and exist only in the text messaging world. Unlike some, I'm not addicted to my electronics.
with the rising cost of new cars, auto insurance, gasoline, etc. is it any wonder that the young people are not buying cars like they used to?
consider that back in the early 90s a ford fiesta would have cost about $10,000, today they are closer to $17,000. want a mustang? in the early 90s you could buy a V6 mustang new for around $12,000 or so, now they are pushing $25,000.
add to the above an economy that is still rather soft, and not creating jobs like it should be, and it is no wonder that new cars sales are not what they used to be.
with the rising cost of new cars, auto insurance, gasoline, etc. is it any wonder that the young people are not buying cars like they used to?
consider that back in the early 90s a ford fiesta would have cost about $10,000, today they are closer to $17,000. want a mustang? in the early 90s you could buy a V6 mustang new for around $12,000 or so, now they are pushing $25,000.
add to the above an economy that is still rather soft, and not creating jobs like it should be, and it is no wonder that new cars sales are not what they used to be.
Try adjusting those cost to today's value. The 1960s one could easily get a car for about $3,000. Even when I couldn't afford a car, I still dreamed of owning one and worked my butt off to get one. Perhaps that's the issue. Takes hard work to earn the money to purchase a vehicle.
As a 26-y/o, I believe I can answer this question. Biggest reason is most young people these days don't have any money, due to a combination of a crappy job market and high student loan debt. A lot of people I know drive hand-me-downs from their parents or are still driving the same car mommy/daddy bought them when they were in high school/ college. A lot of people my age, even ones who have money, are more frugal than their parents are. Although it's easy to be frugal when the car you drive was given to you.
Also, by and large, most young people do not drive cars that are marketed towards young people. They drive the same models of cars older people drive-- except that they tend to be older and more beat up. A cruise through the parking lot at my work, which is pretty much all people in their mid 20's, reveals a Ford Focus, Toyota Rav 4, Toyota Tacoma, Ford F-150, Chevy Tahoe, Oldmobile Alero, Honda Accord, Acura RSX, Acura Integra, Toyota Celica, some kind of early 2000's Volvo, Ford Explorer, Subaru Forester, Jeep Liberty, Volkswagen Jetta... not really any common denominator I can think of. Young girls do tend to like chicks cars that they think are "cute" (especially the Jetta and small SUV's like the Rav4 & Liberty) but young guys will pretty much drive anything. Ironically the guy who's the biggest "car guy" in the office drives the oldest, crappiest car in the parking lot. He actually sold his 2010 Honda Fit for a 1992 Acura Integra.
Me, I'm thinking about buying a new Camry-- even though I'm easily half the age of the average Camry buyer. I'll spend my money on whatever I like-- I don't give a **** what is considered "age appropriate."
My guess is finances. Young drivers don't have big salaries, and unfortunately salaries haven't increased as much as the cost of car ownership. When you're looking at insurance, taxes, fuel, maintenance, and the basic purchase price a car costs a pretty penny! Simply looking back at my childhood during the 90's gas was at least somewhat affordable. I'd typically put $5 or $10 in my old firebird back in high school, and that would net me 5-10 gallons of fuel...$20 would ALWAYS fill up my tank, and they'd give me enough change for a coke.
I purchased my first motorcycle when I was in college because I was freaking out that gas was getting close to $3.00/gallon. I don't think it touched $3.00 by the time i graduated in 05' and I can remember filling up my 1.9 gallon gas tank for $5.00 and being happy...Filling up the 4.2 gallon tank on my SV, or the 3.6 gallon tank of my Magna makes me cringe when I see $12 for the entire fill-up, it's NUTS!
What i find so odd about gas prices is salaries. When I was in high school I was paid $7.50/hr at both of my jobs. With the little earnings I had, I was able to go out with friends, fill up my old car, and pay for my car insurance...The wages haven't increased by much if any in the past 10 years, and I can't imagine a kid these days paying for even gasoline on $8.00/hr, and considering my master's degree wife was working as a bank teller for $10/hr at one point, I KNOW wages haven't increased much.
I remember when i became of age to acquire my drivers license it was a big deal that i dreamed of for years before, doesnt seem to be that big a deal for todays kids as my own two teenage daughters and most of their friends have no interest in getting into all the financial baggage that comes with car ownership.
It helps that we live in a big city with ample public transit and subways so they do have a choice
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