Generation Y Giving Cars a Pass
09-21-10, 10:17 AM
#1
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Generation Y Giving Cars a Pass
http://autos.yahoo.com/articles/auto...g-cars-a-pass/
Selling cars to young adults under 30 is proving to be a real challenge for automakers. Unlike their elders, Generation Yers own fewer cars and don’t drive much. They’re likely to see autos as a source of pollution, not as a sex or status symbol.
5Motorists aged 21 to 30 now account for 14% of miles driven, down from 21% in 199.
They’re more apt to ride mass transit to work and use car sharing services -- pioneered by Zipcar -- for longer trips. And car sharing choices are expanding, with car rental firms moving into the market, making it convenient for young folks to rent with hourly rates and easy insurance. Connect by Hertz, for example, is rolling out its car sharing services in the New York metropolitan area, with plans to eventually expand them to around 40 college campuses nationwide.
The trend won’t cause car sales to tank, of course, but the generational shift doesn’t bode well for manufacturers and auto dealers, which for decades have counted on wooing young new drivers to their brands in hopes of cementing lifetime customer relationships.
Gen Yers are a big potential market: At 80 million strong, they represent the biggest generation in U.S. history. Baby boomers are a close second, but millions of them begin turning 65 next year -- an age at which car purchases drop off sharply.
“It’s a matter of mind-set far more than affordability,” says William Draves, president of Learning Resources Network, an association that studies consumer trends and provides education and training services.
“This generation focuses its buying on computers, BlackBerrys, music and software and views commuting a few hours by car a huge productivity waste when they can work using PDAs while taking the bus and train,” says Draves.
Moreover, in survey after survey, Gen Yers say that they believe cars are damaging to the environment. Even hybrid electric vehicles don’t seem to be changing young consumers’ attitudes much.
Selling cars to young adults under 30 is proving to be a real challenge for automakers. Unlike their elders, Generation Yers own fewer cars and don’t drive much. They’re likely to see autos as a source of pollution, not as a sex or status symbol.
5Motorists aged 21 to 30 now account for 14% of miles driven, down from 21% in 199.
They’re more apt to ride mass transit to work and use car sharing services -- pioneered by Zipcar -- for longer trips. And car sharing choices are expanding, with car rental firms moving into the market, making it convenient for young folks to rent with hourly rates and easy insurance. Connect by Hertz, for example, is rolling out its car sharing services in the New York metropolitan area, with plans to eventually expand them to around 40 college campuses nationwide.
The trend won’t cause car sales to tank, of course, but the generational shift doesn’t bode well for manufacturers and auto dealers, which for decades have counted on wooing young new drivers to their brands in hopes of cementing lifetime customer relationships.
Gen Yers are a big potential market: At 80 million strong, they represent the biggest generation in U.S. history. Baby boomers are a close second, but millions of them begin turning 65 next year -- an age at which car purchases drop off sharply.
“It’s a matter of mind-set far more than affordability,” says William Draves, president of Learning Resources Network, an association that studies consumer trends and provides education and training services.
“This generation focuses its buying on computers, BlackBerrys, music and software and views commuting a few hours by car a huge productivity waste when they can work using PDAs while taking the bus and train,” says Draves.
Moreover, in survey after survey, Gen Yers say that they believe cars are damaging to the environment. Even hybrid electric vehicles don’t seem to be changing young consumers’ attitudes much.
09-21-10, 10:35 AM
#2
Lexus Fanatic
I've said for some time now that auto manufacturers were needlessly trying to pander to young people...not that there's anything wrong with young people (we all were young once, and some of you at CL still are). But the constant (and increasing) emphasis on sportiness in suspensions, ride/handling, powertrains, and interiors seems to have more potential in the minds of designers than in the actual market itself. And, as this article shows, it seems that the Bluetooths, I-Pods, MP3, Sync, etc..... in the cars have more appeal to Generation Y than the rest of the car itself. These kids and young people are into electronics to an extent that I myself probably can't even imagine.
In general, the best market for auto manufacturers is probably the 45-60 age bracket. That group has been earning and saving money for decades, is approaching retirement, have houses/mortgages that are often paid off, have kids that have grown up and are done with college, and can often afford the more expensive vehicles they couldn't earlier in life.
In general, the best market for auto manufacturers is probably the 45-60 age bracket. That group has been earning and saving money for decades, is approaching retirement, have houses/mortgages that are often paid off, have kids that have grown up and are done with college, and can often afford the more expensive vehicles they couldn't earlier in life.
Last edited by mmarshall; 09-21-10 at 10:47 AM.
09-21-10, 03:43 PM
#7
I saw this article, I've been aware of this for a while. Remember when you were in HS and everyone you knew had a nice car or atleast a decent drivable car, most everyone had a sound system of some sort and Cruising and hanging out on the weekends were our pastime.. Now all you see is the ricers hanging out, not much of real car scene like it was where everyone and anyone that had a nice car could just hangout, meet and chill.
Only real small towns in the South where i still see some glimmer of hope that this type of socializing still exist. We do have car meets and such but its too specialize and specific on what you have or what parts you have, its has gotten "Click-ish".
I remember visiting a small town in TN, this town had an alcohol ban and there was nothing to do except hanging out and cruising, they are really into cars there. I was visiting some friends who lived there and we were coming out of Restaurant and saw a guy trying to steal some wheels off this low-rider mini-truck. Another group of guys in the parking lot was closer to him as they were walking out of a store on the other side of the parking lot, just as we were about to say something. The other group of guys - rough this thief up and sent his butt running. We asked if the truck was their's, they said "no, but they knew the truck didn't belong to him, so we kicked his ****". I was amazed that this kind of love and respect for other people's property still exist in America if only in Small-town America.. I miss the days where other people you didn't even know looked out for your car because it was a Nice car...
The Breed of us CAR PEOPLE are is getting smaller every year..
Only real small towns in the South where i still see some glimmer of hope that this type of socializing still exist. We do have car meets and such but its too specialize and specific on what you have or what parts you have, its has gotten "Click-ish".
I remember visiting a small town in TN, this town had an alcohol ban and there was nothing to do except hanging out and cruising, they are really into cars there. I was visiting some friends who lived there and we were coming out of Restaurant and saw a guy trying to steal some wheels off this low-rider mini-truck. Another group of guys in the parking lot was closer to him as they were walking out of a store on the other side of the parking lot, just as we were about to say something. The other group of guys - rough this thief up and sent his butt running. We asked if the truck was their's, they said "no, but they knew the truck didn't belong to him, so we kicked his ****". I was amazed that this kind of love and respect for other people's property still exist in America if only in Small-town America.. I miss the days where other people you didn't even know looked out for your car because it was a Nice car...
The Breed of us CAR PEOPLE are is getting smaller every year..
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09-21-10, 06:26 PM
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I know kids in high school who don't want to learn to drive because mommy and daddy will still drive. They're avoiding that responsibility for as long as possible. Driving gave you that sense of freedom and independence that some people just don't care for anymore. Give them games and Facebook and there's no reason to leave home.
09-21-10, 06:28 PM
#10
This is a bad thing, this just means less experienced drivers getting on the roads at an older age. Driving is just part of growing up im sorry. Maybe i still live in a "traditional" world where not being able to drive sucks and the second you have the chance to get a license....you do not wait until mom and dad stop driving you around
09-21-10, 09:40 PM
#11
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I saw this article, I've been aware of this for a while. Remember when you were in HS and everyone you knew had a nice car or atleast a decent drivable car, most everyone had a sound system of some sort and Cruising and hanging out on the weekends were our pastime.. Now all you see is the ricers hanging out, not much of real car scene like it was where everyone and anyone that had a nice car could just hangout, meet and chill.
09-21-10, 11:48 PM
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I see it around me...I'm of the recent grad generation that is just getting into their careers, and very few of my friends care for cool cars. Most of my friends like practical cars that haul, play MP3s, sync with Bluetooth phones, get traffic on their Nav systems, etc. They will admire a nice car ("Wow, you drive a ______! Nice....must cost a ton to maintain!"), but they generally do not aspire to get one.
I actually like it...makes my own hobby stand out more.
I actually like it...makes my own hobby stand out more.
09-22-10, 08:29 AM
#14
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i think gen y'ers aren't buying cars or drive beaters (or hand me downs) because they're buried in student loan and credit card debt and can't find a job or are still in school.
09-22-10, 09:40 AM
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I think everyone has made some good points.
Let me go further. In the past, the car was your way OUT, your way to FREEDOM. Your car represented you or another side of you.
With the internet people have that freedom at home. The no longer need a car to be "out". People rather be on the computer for days on end instead of out and about.
I've seen it firsthand. The first generation of people at meets in Atlanta would always come out. Now its like pulling teeth. Something changed.
Let me go further. In the past, the car was your way OUT, your way to FREEDOM. Your car represented you or another side of you.
With the internet people have that freedom at home. The no longer need a car to be "out". People rather be on the computer for days on end instead of out and about.
I've seen it firsthand. The first generation of people at meets in Atlanta would always come out. Now its like pulling teeth. Something changed.